Amendments in personal loan default interest rate, one-off penalty fee and early repayment fee

Amendments in personal loan default interest rate, one-off penalty fee and early repayment fee (if applicable)

Effective from 01 February, 2017

Dear Customer,

We highly value satisfaction of our customers and periodically review our product and service terms and tariffs to ensure they continue meeting HSBC's strategy and principles of customer conduct.

We are glad to inform, that we have reviewed and significantly improved personal loan penalty interest rate, one-off penalty fee as well as loan early repayment fee (if applicable*) for new and existing loans. Changes are effective from 01 February, 2017.

Amendment details are presented below:

1. Unsecured personal loan, Car loan and Property secured personal loan

  • Decrease of loan penalty interest rate
    Starting from 01 February, 2017 penalty interest rate charged on loan overdue amount is equal to annual nominal interest rate of the loan plus annual 5% fixed interest, instead of previous 15% fixed interest plus loan annual interest rate.
  • Cancellation of one-off penalty fee
    AMD 10,000 fee, charged in case of 3 or more days of loan payment overdue will no longer apply.

If you hold any of these loans, then we will contact you and invite to our branch for signing an agreement amendment for the new changes to take effect. If your contact details have changed, please inform us via calling our Contact Centre at +374 60 655 000 or by visiting any of our branches.

*Early repayment fee is applicable for Property purchase, renovation and construction loans only.

2. Residential property purchase, renovation and construction loans

  • Decrease of loan penalty interest rate
    Starting from 01 February, 2017 penalty interest rate charged on loan overdue amount is equal to annual nominal interest rate of the loan plus annual 5% fixed interest, instead of previous 15% fixed interest plus loan annual interest rate.
  • Cancellation of one-off penalty fee
    AMD 10,000 fee, charged in case of 3 or more days of loan payment overdue will no longer apply.
  • Loan early repayment fee cancellation
    If as at 01 February, 2017 more than 2 years (24 months) have passed since your loan provision date, then the early repayment fee stipulated in your loan agreement will no longer apply. Otherwise, early repayment fee applies as stipulated in your loan agreement.

If you hold any of these loans mentioned in point 2, all changes will automatically enter into force from 01 February, 2017, except for early repayment fee, which will require signing an amendment to your loan agreement. To sign an amendment to agreement, please visit any of our branches.

In case of questions, please visit any of our branches or call our Contact Centre at +374 60 655 000.

Thank you,
HSBC Bank Armenia



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Last updated on: 01/02/2017 15:00