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Two pair of hands holding a box having a watch; image used for Loan on HSBC Credit Card.

Loan on Phone

Moments are best experienced together.

SMS LOP to 575750 and our representative will call you back.

Features & Benefits

Take the holiday of your dreams, a new TV, or a computer. HSBC makes all this so easy through the exciting new 'Loan on Phone' feature on your HSBC credit card! Shop till you drop and make low interest repayments. 

  • Make a purchase of a minimum of ₹2000 on a HSBC Credit Card
  • Call HSBC within 50 days of making the purchase to convert it to a loan
  • Choose from multiple tenure options 
  • Rate of interest between 10.99% to 24%p.a. 

Processing fee on Loan on Phone : 2% (subject to a minimum of ₹100)

SMS ‘LOP’ to 575750 and our representative will call you back

Save more with a HSBC Cashback Credit Card

No Joining Fees. Get 1.5% cashback on online spends and 1% on others with no cap.

T&C Apply

Important Information

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 select HSBC Credit Cardholders (hereinafter referred to as the 'Cardholder'). 

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 instalments. The Cardholder can make the purchase at any merchant establishment and post purchase get the transaction converted into an LOP. The LOP will not get processed if there has been a reversal of the transaction or a chargeback dispute towards the said purchase transaction. 

Loan on Phone facility can be offered only within 50 calendar days of the purchase transaction. 

The value of the transaction should be greater than INR2,000 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. 

The annual rate of interest to be charged and the processing fees will be communicated at the time of accepting the Loan on Phone request. The processing fee will reflect along with the first Equated Monthly Instalment (EMI) amount on the card statement. The EMI amount will be billed to the Credit Card every month on the same date as the first instalment date. 

A 2% processing fee will be applicable subject to a minimum of INR100. This will reflect along with the first Equated Monthly Instalment (EMI) amount on the card statement.  

The loan will be offered for a maximum tenure of 24 months with slabs of 3, 6, 9, 12, 18 and 24 months. 

The Equated Monthly Instalment (EMI) amount will be billed to the Credit Card every month on the same date as the first instalment date. 

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 plus 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 on 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 = INR10,750 Other outstanding balances = INR2,000
LOP instalment for the month = INR1,000
Other outstanding balances = INR2,000
Total payment due for the month = INR3,000
Minimum payment due = (5% multiplied by INR2,000) + INR1,000 = INR1,100  

Scenario I: 

Amount paid = INR1,200
Amount outstanding = Total payment due – Amount paid = INR1,800
Finance charges at the applicable rate will apply on INR1,800 in the next billing cycle. 

Scenario II: 

Amount paid = INR3,000
Amount Outstanding - 0
No finance charges will apply.

Kindly note that according to the new payment hierarchy effective 5 August 2013, payments made by you towards the Credit Card outstanding will first be settled in the order minimum payment due, first by the following ‘plans’ i.e. EMI, cash advances, purchase outstanding and Balance Transfer in descending order of interest rates, and within a given ‘plan’, the payment will be allocated in a predefined order of (1) Service charges, (2) Interest/Finance charges, (3) Late payment charges, (4) Annual fee, (5) Overlimit fee, (6) Instalment handling fee, (7) Instalment processing fee, (8) Return cheque charges, (9) Insurance premium and (10) Purchase principal.   

Any payment made in excess of the Total Payment Due will only be adjusted to the future purchase outstanding in accordance to the ' payment hierarchy' as defined herein. In case there is no purchase outstanding, the payment made in excess of the Total Payment Due will be adjusted in accordance with the 'payment hierarchy', (EMI, Cash advances, Purchase outstanding and Balance Transfer in descending order of interest rates).  

To preclose the Loan-on-Phone facility , the cardholder should call HSBC PhoneBanking. 

Prepayment 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 INR250. 

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.  

If the Cardholder closes his Credit Card before all instalments have been posted, the outstanding loan amount will be debited to the Credit Card account as one consolidated amount.   

HSBC reserves the right to foreclose the loan and debit the entire outstanding amount if the earlier payments are overdue.  

Any Loan on Phone requests by add-on Cardholders will be billed to the primary card.    

No request for change in card franchisee (Visa/MasterCard®) will be entertained during the entire loan period. 

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. Per extant Reserve Bank of India (RBI) guideline, no advances should be granted by banks for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold Exchange Traded Funds (ETF) and units of gold mutual funds. Accordingly, conversion of such transaction into an Equated Monthly Instalment (EMI) scheme is prohibited.    

Nothing contained in this scheme shall be construed as an obligation on HSBC to continue the scheme after the scheme termination date.  

HSBC may without previous notice add, alter, modify, change or vary all or any of these terms and conditions or replace, wholly or in part, this scheme by another scheme, whether similar to this scheme or not, or withdraw it altogether. HSBC may at its discretion discontinue the LOP facility at anytime during the pendency of the facility, foreclose the loan and debit the entire outstanding amount to the Credit Card.  

HSBC will not be responsible or liable for any direct or indirect loss, damage, actions, claims, demands, costs, charges, and expenses whatsoever that may be suffered, as a result of participating in the offer.  

All and any disputes arising from the Loan on Phone facility shall be subject to the exclusive jurisdiction of the courts of Mumbai. 

The terms of this offer shall be in addition to and not in substitution of the terms contained in the Cardholder's 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's agreement. The words and expressions used herein shall have the same meaning as in the Cardholder's agreement. 

HSBC will not be responsible or liable for any direct or indirect loss, damage, actions, claims, demands, costs, charges, and expenses whatsoever that may be suffered, as a result of participating in the offer.  

Please note that basis Goods Service Tax (GST) regulations and notified GST rates, Central GST and State/Union Territory GST or Inter-State GST, as applicable, would apply on our fees and charges with effect from 01 July 2017 .

Terms & Conditions

If approved, your credit card will be dispatched within 3 weeks. Please contact HSBC Phone Banking, after 3 weeks to know the status of your credit card application.

Issuance of credit card is at the sole discretion of The Hongkong and Shanghai Banking Corporation Limited, India. All features and benefits are subject to Terms and Conditions. Please refer to the respective web pages to know more details.

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