Home   |  Issues  |  The Daily Star Home | Volume 2, Issue 12, Tuesday September 14, 2004







My Loan Fair a benefit for the middle income groups

With the HSBC 'My Loan' fair coming up, we decided to ask some questions about the whole 'My Loan' scheme and all the factors that are associated with it. The following are some excerpts of the interview with Mamoon Mahmood Shah, Manager, Personal Financial Services, HSBC.

Star Lifestyle (LS): With what aim was the 'My Loan'package launched?
Mahmood: The 'My Loan' package was launched to improve and enhance the lifestyles of people. It provides individuals with a greater desire to improve their standards of living and also increases his/her spending power. 'My Loan' was launched as a brand at the end of April this year, and it provides consumer loans for almost all categories.

LS: What makes the 'My Loan' brand stand out in the Banking industry in Bangladesh?
Mahmood: The 'My Loan' brand provides consumer loans with the most flexible credit criteria, a very short turn around time, and on top of it all, there is no down payment involved and no guarantee is required. It has highly competitive interest rates and thus stands out in the market.

LS: What are the requirements for qualifying for a loan?
Mahmood: The requirements for qualifying for a 'My Loan' are very simple. All that is needed are income documents, and the applicant has to have a minimum monthly salary income of Tk.15000-20000, depending on the criteria they are applying for.

LS: How long does it take to process the loan?
Mahmood: Again, one of the things that makes the 'My Loan' brand stand out in the market is the short turn around time for obtaining the loan. The time required to process all the paperwork for the loan is 24 hours for an HSBC account holder, and 72 hours for a non-account holder.

LS: Why does the processing time differ between account holders and non-account holders?
Mahmood: In order to process an applicant's qualification for a loan, we need to check through the applicant's income documents, mainly bank statements. For an HSBC account holder we can review this far more simply than that of a non-account holder. For a non-account holder, we need to check the authenticity of the bank statements provided and this requires more time.

LS: What are the added benefits of the 'My Loan' concept?
Mahmood: The 'My loan' brand also tags along retailers of different products and services, starting from travel agencies to home appliances. HSBC has special arrangements with the retailers, and this means that the customer can check out the appliance through these retailers and apply for a loan through HSBC. This makes the process far more simpler. For this we also reduce threshold at times to accommodate the sales of certain products. For example, if a customer wishes to purchase a product worth Tk.30000, then he/she normally has to apply for a loan of Tk.50000, which is the minimum loan amount provided. However, if the product is available through the retailers, then HSBC shall reduce the minimum threshold for the loan and give out a loan of Tk.30000. This is especially a benefit for the middle income groups, as the loan amount is considerably smaller, and thus easier to repay.

LS: The 'My Loan' fair is starting on the 16th of September. What can be expected at the fair?
Mahmood: The 'My Loan' fair is a unique fair, and the first of its kind in Bangladesh. At the fair, HSBC shall tag up with its preferred retailers, together with their different products, as well as HSBC's 'My Loan'. Customers at the fair shall be able to purchase different products with the financial help of 'My Loan'. One can even apply for a loan at the fair premises and HSBC is considering lowering the interest rate for the fair.

- LS Desk



home | Issues | The Daily Star Home

2003 The Daily Star