HSBC's interest Rate for Personal Loan
Dear QL members,
It is very surprising that HSBC is still not reducing their personal loan interest rate while othe banks have been implementing 5.0% +1.5% loan policy as per Qatar Central Banks regulations. As far as I know, HSBC should have recalculated personal loans (back and front calculations) abiding the new QCB regulations..
Any idea on this?
Yes!!! There was a circular was issued 4-months ago. QCB is allowing banks to charge a maximum interest of 5% per annum and it is a retroactive implementation where the loan shall be re-calculated front and back.Was planning to pay my remaining loan and I learned to know that their computation will be based on the original interest rate when loan was taken. In fact, loan agreement is based on floating rate.This new interest rate are now being implemented by other banks, except HSBC>>>>>
is there a QCB circular number or any other reference number for this QCB regulation on interest rate? Did it provide for retroactive implementation from time personal loan is taken?
In my opinion..hsbc have lots of hidden charges..even if you go to customer service..they could not even show or explain how they calculate their interest in front of you..they only know how and when to deduct money from your salary.. Better change from hsbc!
for banks to reduce their interest rates per QCB's circular. No ifs or buts. The QCB is the governing body of banks.
Wikipedia: "...The primary function of a central bank is to provide the nation's money supply, but more active duties include controlling interest rates (i.e., price fixing), and acting as a lender of last resort to the banking sector during times of financial crisis (e.g., bailouts). It may also have supervisory powers, intended to prevent banks and other financial institutions from reckless or fraudulent behaviour. Central banks in most developed nations are independent in that they operate under rules designed to render them free from political interference."
If your bank has not reduced its interest rates, then they fall under 'fraudalent behaviour', which would make them liable.
We'll see if they are true to their words once I check the amount that they will deduct from my salary this coming salary...
@mcdonalds3000 HSBC is telling this for three months now..."Action speaks louder than words."
Tha's the problem...their existing interst rates still varies from 7% to 9.5 %.I agree that banks are ther to earn money and I share your views on that. But it is not human!!!
Just receive a mail from them last Wednesday stating that they are reducing the interest rate on my outstanding personal loan balance from nearly 12% to 5% (rounded off figures). If that would be the case, there will be a significant reduction on the amortization that I am paying monthly...
As long as they don't exceed the limit set by the central bank, they don't have to. Banks are there to earn money, sad but true.
I hope they (HSBC-Qatar) do it soon so even I can benefit from this