HSBC Car Loan

With our Car Loan, make your driving dreams a reality. Let us help you with flexibility and affordability.

Benefits

  • Affordable
    Receive up to AMD 40 million car loan.
  • Flexible
    Choose the payment date and repayment options to best suit your needs.
  • Straightforward
    No annual service fee applies, you only pay once when receiving the loan.

Loan interest rate

Floating annual nominal interest rate
 

Floating annual nominal interest rate calculated at the HSBC Bank Armenia AMD base rate plus fixed Interest Rate Margin of 4.5%2 p.a. and is currently equal to:

9.5% + 4.5% = 14%3

Annual percentage rate starting from 22.30%.

Loan interest is calculated on a daily basis for 365 days and for 366 days in case of leap year on the loan outstanding balance.

Loan interest amount is being calculated based on the annual nominal interest rate, whereas the annual percentage rate or APR indicates how much would loan cost to borrower in case of repayment of interest amount and other payments under the defined timeline and terms.

Product overview

Loan currency

Loan is provided in AMD.

Loan size

The loan amount of cars purchased from primary market:

  • may vary from AMD 1.5 million to up to AMD 40 million
  • can't exceed 70% of the car value, respectively minimum prepayment amount that should be arranged by customer is 30%

The loan amount of cars purchased from secondary market:

  • may vary from AMD 1.5 million to up to AMD 20 million
  • can't exceed 60% of the car value, respectively minimum prepayment amount is 40%

 

The ratio of overall monthly loan payments to net monthly income can not exceed 60% if net monthly income is less than AMD700,000 and 70%, if net monthly income is greater than or equal to AMD 700,000.

Loan Term1

From 24 up to 60 months.

Loan account service fee

The following one-off account service fee will be charged to the customer's account

  • AMD 50,000 if the loan amount is less than or equal to AMD 5 million
  • AMD 100,000 if the loan amount is more than AMD 5 million

Loan account fee is charged on loan provision day.

Default interest rate and penalty

  • In case of overdue/default on loan principal and/or interest the Bank will apply penalty interest rate - 5% p.a. plus the loan nominal interest rate per annum, on the overdue amount.
  • No early repayment fee is applicable. 

Note

BEFORE SIGNING THE LOAN AGREEMENT, INDIVIDUAL BULLETIN TO BE PROVIDED AS PER CENTRAL BANK OF ARMENIA REGULATION 8/05 "ON BUSINESS CONDUCT RULES OF FINANCIAL ORGANIZATIONS".

ATTENTION: IF YOU DON'T MAKE YOUR LOAN MONTHLY REPAYMENTS IN LINE WITH THE LOAN SCHEDULE, INFORMATION ABOUT CREDIT HISTORY WILL BE SUBMITTED TO CENTRAL BANK OF ARMENIA AND ACRA CREDIT REPORTING CJSC IN THREE WORKING DAYS, RESULTING IN NEGATIVE IMPACT ON YOUR CREDIT HISTORY, SHOULD YOU DECIDE TO APPLY FOR ANOTHER LOAN IN THE FUTURE. YOU HAVE A RIGHT TO OBTAIN YOUR CREDIT HISTORY FROM CREDIT BUREAU FREE OF CHARGE ONCE A YEAR.

1Customer's minimum age is 21. Customer's age plus the loan term should not exceed 65 years.

2Depending on risk assessment results, loan application may be approved at a higher interest rate.

31% lower than standard annual nominal interest rate for HSBC Plus and HSBC Status customers. Rate is variable and is currently equal to 9.5% + 3.5% = 13%

Where: 9.5% - Bank's AMD Base Rate, 3.5% - Fixed interest rate margin instead of 4.5%

Annual percentage rate starting from 21.18%.

Eligibility

You're eligible to apply for a Car loan if you're an RA Resident1 and meet the minimum criteria for salaried and non-salaried account holders.

Salaried account holder criteria

You must have:

  • an account with us
  • at least 3 months employment with a company maintaining a satisfactory banking relationship with us or with another bank in RA
  • a net monthly salary of at least AMD 200,000

Your salary should be transferred to your account after loan drawdown (in case if prior salary transfer is not required by us)2.

 

If you don't have account with us, you must:

 

  • have account with another bank
  • at least 3 months employment history
  • a salary transferred to your account for 3 months
  • a net monthly salary of at least AMD 250,000

Non-salaried account holder criteria

You must have a satisfactory banking relationship with us or other local banks for a period of 3 months and more, and the last 3 months average monthly balance and average balance of the last month have been at least:

  • AMD 200,000 (or equivalent in foreign currency) if your account is with us
  • AMD 250,000 (or equivalent in foreign currency) if your account is with another bank

 

1Persons with minimum 1 year of residence in Armenia proven by respective documents are considered as Armenian residents.

2The requirements on salary transfer to your account with us will be communicated to you during the loan approving process.

Related products

 

Our property loan to suit your needs.

 

A great way of putting your plans into action.

 

A fast and flexible solution to your financial needs.

Last updated on: 21/5/2019 10:58:11