The Hongkong and Shanghai Banking Corporation Limited, India (HSBC) offers you to convert the retail outstanding balance on the HSBC Credit Card (hereinafter referred to as 'Credit Card') into loan and pay back in instalments (hereinafter referred as 'Offer' or 'Balcon' or 'Balance Conversion').
Any participation is voluntary.
This facility is applicable to only select HSBC Credit Cardholders (hereinafter referred to as the ‘Cardholder’).
In Balcon, the Cardholder can convert the retail outstanding balance, due to HSBC, either billed or unbilled by request.
Balcon can be offered only on the outstanding balance on the day of request and will not be applicable to balance for which the payment has been made and/or credit received on the said card account.
If the Cardholder uses his card for further purchase the amount requested on the day of the request will be considered and processed. The conversion will not be applicable for further purchases made on the card.
If the Cardholder makes a part payment on his outstanding balance by post placing a Balance Conversion request to HSBC, the conversion will be processed for the outstanding balance as applicable, post the payment or credit subject to the maximum amount on the day of request.
The value of the balance being converted should be greater than 5,000 to be eligible for Balance Conversion.
The annual rate of interest charged and the processing fees will be communicated at the time of the conversion being requested. The interest rate and the processing fees communicated at the time of accepting the Balance Conversion request will be charged for all accepted requests. 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.
The Balance Conversion will be offered for a maximum tenure of 12 months with slabs of 3, 6, 9 and 12 months.
HSBC reserves the right to decline the request taken for Balance Conversion if the same does not meet the HSBC’s internal guidelines at the time of booking the same.
The Balance Conversion 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 Balance Conversion. 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 only the Minimum Amount Due is paid, then 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).
Pre-closure charges for 3% or 250 whichever is higher would be charged.
Months Balance Conversion availed under Balcon facility = 10,750
Other outstanding balances = 2,000
Balcon instalment for the month = 1,000
Total payment due for the month = 3,000
Minimum payment due = (5% × 2,000) + 1,000 = 1,100
Scenario 1:
Amount paid = 1,200
Amount outstanding = Total payment due – Amount paid = 1,800
Finance charges at the applicable rate will apply on 1,800 in the next billing cycle.
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’, in other words, 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) Over-limit fee, (6) Instalment handling fee, (7) Instalment processing fee, (8) Return cheque charges, (9) Insurance premium, (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 Balance Conversion facility, the cardholder should call HSBC PhoneBanking.
If you have signed up for a Standing Instruction (SI) to automatically settle the Credit Card outstanding (minimum amount due or total amount due or a percentage of total amount due) by a debit to your current/savings account, we request you to please submit a new SI. The current SI that you may have signed up may not cover monthly EMI due towards Loan on Phone, Cash on EMI, Balance Transfer on EMI and hence, the need to resubmit a new SI. Also please arrange for making payments against the Credit Card outstanding (including EMIs) by the payment due dates, till such time a new SI is activated on your account.
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 250.
If the Cardholder defaults on payment of any of the EMIs, HSBC reserves the right to foreclose the Balance Conversion outstanding and debit the entire outstanding amount.
If the Cardholder request for closure of his Credit Card before all instalments has been posted, the outstanding loan amount will be debited to the credit card account as one consolidated amount. The Credit Card will be closed, post-payment of complete outstanding on the Credit Card.
HSBC reserves the right to foreclose the Balcon and debit the entire outstanding amount if the earlier payments are overdue.
Any Balcon 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 Balcon tenure.
No request for changes in the billing cycle shall be entertained during the Balcon tenure.
Nothing contained in this scheme shall be construed as an obligation on HSBC to continue the Offer after the termination date.
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 jewelry, 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.
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 Offer by another Offer, whether similar to this Offer or not, or withdraw it altogether. HSBC may at its discretion discontinue the Balance Conversion Offer at anytime during the pendency of the Offer, 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 Balance Conversion shall be subject to the exclusive jurisdiction of the courts of Mumbai only.
The terms of this Offer shall be in addition to and not in substitution to the terms contained in the Cardholder agreement. This Offer is 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.
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.
