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.
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.
What makes the 'My Loan' brand stand out in the Banking industry in
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.
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.
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
Why does the processing time differ between account holders and non-account
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.
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.
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.