We understand that customers affected by COVID-19 may struggle to pay for their loans in the coming months. To help you through this difficult period, we've made the following provisions.
- we won't apply penalties if you can't repay a loan on time per your credit facilities agreement between 13 March - 31 May 2020 inclusive
- we won't consider unpaid loan obligations between 13 March - 31 May 2020 inclusive 'overdue'. Your credit won't be impacted as we won't disclose details of the overdue payments to the CBA Credit Registry and ACRA Credit Bureau. Please note that this does not apply to payments already overdue by more than 30 days as of 13 March 2020
- we're ready to help financially vulnerable customers by providing a credit holiday. This will defer the principal and interest payments defined by your loan repayment schedule, and extend the credit facility maturity dates where needed
Frequently asked questions
You may have a lot of questions about these measures we've taken. We've answered some of your more pressing ones here.
When can you apply for a credit holiday?
You can consider applying for a credit holiday if you're facing financial difficulties or your income has been reduced temporarily due to the current situation, or you can't repay your loans on time.
We'll review your request and we may be able to provide you with the following options.
For secured loans, we could either:
- defer the principal and interest payments defined by your loan repayment schedule for 3-6 months by allocating those payments over the remaining term of your loan
- defer only the principal payments defined by your loan repayment schedule for 3-12 months by allocating those payments over the remaining term of your loan. Interest will be repaid per your regular loan repayment schedule
For unsecured loans, we could either:
- defer the principal and interest payments defined by your loan repayment schedule for 3 months by allocating those payments over the remaining term of your loan or extending the loan maturity period proportionately without exceeding the credit holiday duration
- defer only the principal payments defined by your loan repayment schedule for 3-6 months by allocating those payments over the remaining term of your loan or extending the loan maturity period proportionately without exceeding the credit holiday duration. Interest will be repaid per your regular loan repayment schedule
Please note: a credit holiday should not be confused with an interest payment suspension, freeze or concession. All interest payments defined by your loan repayment schedule will be calculated and accrued during the credit holiday.
When might a credit payment extension be considered?
From now until 31 May 2020 inclusive, we may grant a credit payment extension in light of the current situation if you don't expect your financial circumstances to deteriorate significantly. For example, you can consider applying for an extension if you're unable to visit your local branch or bank from home, or if you expect your regular cash flow to be delayed.
During the extension, we won't consider unpaid loan obligations 'overdue'. We won't penalise you for them and we won't disclose them to credit registers either.
How will HSBC approach loan facilities during the credit payment extension?
If you haven't applied for a credit holiday yet and you have enough money in your loan servicing account on the loan repayment date, we'll debit it automatically.
This is so that we don't accrue additional interest for customers who intend to pay per their regular loan repayment schedules.
But if you intend to apply for an extension, you can transfer the money to your other HSBC accounts or withdraw it in cash.
How will HSBC approach credit cards and overdraft facilities during the credit payment extension?
If your credit card or overdraft statement was issued before 30 March 2020, the minimum amount you need to pay and when it's due will be reflected in your statement. After you've made the payment, no minimum mandatory payments will apply until 31 May 2020, when the extension ends. The amount due won't be increased by 10% of the amount used if you don't make a payment during the extension period.
If your upcoming credit card or overdraft statement was issued after 30 March 2020, the minimum amount you need to pay won't be reflected in your statement until 31 May 2020.
Please note that we'll also suspend direct debit instructions for repayments until 31 May 2020. During this period, you're encouraged to make payments online, by mobile or phone, via interbank transfers, payment terminals or ATMs. That way, you can avoid additional fees from using credit cards or overdrafts. If needed, you can also visit your local branch for assistance.
As a friendly reminder, your other valid direct debit and standing instructions will continue as usual. Please submit a request to us if you wish to cancel them.
Important updates
- the credit payment extension period will end on 1 June 2020. That means you must repay the outstanding debt and accrued interest by 31 May 2020.
- we'll restart penalising late repayments and reporting overdue liabilities to the CBA Credit Registry and ACRA Credit Bureau from 1 June 2020 onwards.
You're encouraged to make timely payments per your regular loan repayment schedule to avoid accumulating debt.
How do I apply for a credit payment extension?
We're dedicated to providing you with the best possible service, no matter the situation.
To find out more about credit payment extensions or apply for one, you can get in touch with us by:
- sending a secure message via online banking
- emailing us at: hsbc.armenia@hsbc.com
- calling us on +374 (60) 655 000
If you're unable to contact us by secure message, email or phone, please visit your local branch.
We'll continue to send you statements and notifications per local banking regulations and our own internal policies throughout this situation.
Last updated on 25.06.21, 07:04