Loan on Phone – Terms and Conditions


  1. This offer is brought to you by The Hongkong and Shanghai Banking Corporation Limited, India (HSBC) and any participation is voluntary. This offer is applicable to only a select HSBC Credit Cardholders (hereinafter referred to as the "Cardholder").
  2. Loan on Phone (LOP) is a facility by which the Cardholder can make purchases on the HSBC Credit Card (hereinafter referred to as "Credit Card") and then convert the purchase amount into installments. The Cardholder can make the purchase at any merchant establishment and post purchase get the transaction converted into an LOP.
  3. Loan on Phone facility can be offered only within 15 calendar days of the purchase transaction to request for a Loan on Phone on the purchase transaction.
  4. The value of the transaction should be greater than Rs. 2000 to be eligible for conversion to a Loan on Phone. Other debit transactions like cash withdrawals and card fees will not be eligible for this facility.
  5. a. For Gold credit cardholders, the annual rate of interest charged will be 21% computed on monthly reducing balance. Equated Monthly Instalment (EMI) per Rs 1000 will be Rs. 177 for a loan tenure of 6 months, Rs. 93.1 for a loan tenure of 12 months, Rs. 65.2 for a loan tenure of 18 months and Rs. 51.4 for a loan tenure of 24 months.

    b. For Classic credit cardholders, the annual rate of interest charged will be 23.88% computed on monthly reducing balance. Equated Monthly Instalment (EMI) per Rs 1000 will be Rs. 178 for a loan tenure of 6 months, Rs. 95 for a loan tenure of 12 months, Rs. 67 for a loan tenure of 18 months and Rs. 53 for a loan tenure of 24 months.

    c. For Platinum credit cardholders, the annual rate of interest charged will be 18% computed on monthly reducing balance. Equated Monthly Instalment (EMI) per Rs 1000 will be Rs. 176 for a loan tenure of 6 months, Rs. 92 for a loan tenure of 12 months, Rs. 64 for a loan tenure of 18 months and Rs. 50 for a loan tenure of 24 months.

  6. A 2% processing fee will be applicable subject to a minimum of Rs. 100. This will reflect along with the first Equated Monthly Instalment (EMI) amount on the card statement.
  7. The loan will be offered for a maximum tenure of 24 months with slabs of 6, 12, 18 and 24 months.
  8. The Equated Monthly Instalment (EMI) amount will be billed to the credit card every month on the same date as the first instalment date.
  9. Minimum Amount Due: The Loan on Phone EMI due for the month is included as part of the minimum amount due appearing in the Cardholder's monthly statement. The minimum amount due appearing on the Cardholder's monthly statement is calculated as a percentage of the total outstanding retail balance + Monthly EMI due on Loan on Phone EMI. Non-payment of the entire total payment due on the card by the payment due date will result in the levy of standard credit card interest rates on the balance outstanding If Minimum Amount Due (as defined above) is paid only, the standard credit card interest rates will be levied the balance outstanding. However, if such partial payments do not cover the amount of EMI for the month, the balance EMI would also be subject to standard finance charge (including the late payment fee).

    As an illustration:

         12-month Loan on Phone facility availed under LOP facility = Rs.10750
         Other outstanding balances = Rs. 2000
         LOP installment for the month = Rs. 1000
         Other outstanding balances = Rs. 2000
         Total payment due for the month = Rs.3000
         Minimum Payment due = (5% x Rs.2000) + Rs.1000 = Rs.1100

    Scenario I:

    • Amount paid = Rs. 1200
    • Amount outstanding = Total payment due – Amount paid = Rs.1800

    Finance charges at the applicable rate will apply on Rs.1800 in the next billing cycle.

    Scenario II:

    • Amount paid = Rs. 3000
    • Amount Outstanding – 0

    No finance charges will apply
  10. Kindly note that according to the new payment hierarchy, the Cardholders payments will first be apportioned to fees and charges, outstanding on BT, cash advances and purchase transactions in that order. Also note that the Loan on Phone EMI installments will be treated as purchase outstanding for the purpose of payment apportionment. EMI payable towards Loan on Phone EMI will be set off first before any payment is apportioned towards other outstanding. Please note incase the amount paid does not clear the EMI amount (partly or fully), the remaining EMI amount will be added in the next month's Minimum Amount Due along with standard interest charged on the said amount.
  11. Pre-payment charges on foreclosure of the loan will apply at the rate of 3 % on the outstanding principal amount of the loan, subject to a minimum of Rs 250.
  12. If the Cardholder defaults on payment of any of the EMIs, HSBC reserves the right to foreclose the Loan on Phone outstanding and debit the entire outstanding amount.
  13. If the Cardholder closes his Credit Card before all installments have been posted, the outstanding loan amount will be debited to the Credit Card account as one consolidated amount.
  14. HSBC reserves the right to foreclose the loan and debit the entire outstanding amount if the earlier payments are overdue.
  15. Any Loan on Phone requests by add-on cardholders will be billed to the primary card.
  16. No request for change in card franchisee (VISA/ MasterCard) will be entertained during the entire loan period.
  17. No request for changes in the billing cycle shall be entertained during the entire loan period. The loan period is defined as the loan tenure selected by the cardholder at the time of request.
  18. Nothing contained in this scheme shall be construed as an obligation on HSBC to continue the scheme after the scheme termination date.
  19. HSBC reserves the right at any time without previous notice to add, alter, modify, change or vary all or any of these Terms and Conditions or to replace, wholly or in part, this scheme by another scheme, whether similar to this scheme or not, or to withdraw it altogether. HSBC may at its discretion discontinue the LOP facility at any time during the pendency of the facility, foreclose the loan and debit the entire outstanding amount to the Credit Card.
  20. The Cardholder will not hold HSBC responsible for or liable for, any actions, claims, demands, losses, damages, costs, charges, and expenses that a Cardholder may suffer, sustain or incur by way of this scheme.
  21. All and any disputes arising from the Loan on Phone facility shall be subject to the exclusive jurisdiction of the courts of Mumbai.
  22. The terms of this offer shall be in addition to and not in derogation of the terms contained in the Cardholder Agreement. This offer is by way of a special facility for select Cardholders and nothing contained herein shall prejudice or affect the terms and conditions of the Cardholder Agreement. The words and expressions used herein shall have the same meaning as in the Cardholder Agreement.

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