HSBC has decided to reward customers who repay their personal loans on time, offering to refund a quarter of the total interest paid during the term of the loan.
The offer, which is available to all customers taking out a loan in the next three months, will give borrowers an added incentive to be responsible in their attitude to repayment, reducing the overall cost of borrowing.
Joe Garner, HSBC’s head of UK personal financial services, said that the repayment reward was a way of thanking customers for choosing HSBC and for honouring the terms of their loan agreement.
“If a customer is conscientious enough to meet all their repayments in full until their agreed completion date, then we should recognise that and give something back,” he explained.
“With Repayment Reward, HSBC’s personal loan rates will be better than most of the rates charged by our competitors,” he added.
A customer taking out a £10,000 loan over 36 months at a loan rate of 6.9 per cent APR would receive a refund of £266.82, equivalent to a reduction in their loan rate to just 5.3 per cent APR.
This would make the effective loan rate more attractive than some of the best rate loans on the market at present.
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