Loan on phone

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.

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

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 1:

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 2:

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’, 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) 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).

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 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.

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.

1. This facility is brought to you by The Hongkong and Shanghai Banking Corporation Limited, India (HSBC) and any application for the same is voluntary. This facility is available to select HSBC Credit Cardholders (hereinafter referred to as the 'Cardholder') only. This facility is not available for HSBC Add On and HSBC Corporate Credit Cardholders.
2. Cardholders who have not repaid their minimum payment due within 30 days of their payment due date as mentioned on the credit card statement, will not be eligible for this facility.
3. Loan on Phone (LOP) is a facility by which the Cardholder can convert purchases / transactions made on his/her HSBC Credit Card (hereinafter referred to as 'Credit Card') into easy monthly instalments (EMIs).
4. As per extant Reserve Bank of India (RBI) guidelines, no advances shall be granted by HSBC 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 or similar purchases / transactions under the facility is prohibited.
5. Cardholder can apply for the facility through HSBC Mobile banking App or by calling Phone banking. Cardholder may apply for conversion of more than one purchase / transaction under the facility, within 50 days from the said purchase / transaction.
6. HSBC reserves absolute and express discretion with regard to the following:
   • Offering this facility to eligible Cardholder
   • Not offering this facility to the Cardholder for purchases / transactions, in case of reversal or a chargeback dispute on the said purchases / transactions
   • Bundling multiple purchases / transactions, subject to a maximum of 10 transactions, into a single facility after informing the Cardholder, in order to determine the EMI; and
   • Affixing the minimum value of the transaction eligible for this facility as INR2,000. Other transactions like cash withdrawals and card fees shall not be eligible for this facility
7. The annual rate of interest to be charged and the processing fees will be communicated to the Cardholder by HSBC at the time of accepting the Loan on Phone request. The processing fee will reflect along with the first EMI amount on the card statement.
8. The loan will be offered for a maximum tenure of 24 months with slabs of 3, 6, 9, 12, 18 and 24 months. No requests / application for any other monthly slabs shall be entertained by HSBC.
9. The EMI amount will be billed to the monthly Credit Card billing cycle on the corresponding date as the first instalment date.
10. Minimum Amount Due: The EMI for the facility for each month will be a part of the minimum amount due appearing in the Cardholder’s monthly statement. The minimum amount due is calculated as a percentage of the total outstanding balance in addition to the EMI due against the facility. Non-payment of the minimum amount due or entire total outstanding amount on the Credit Card on or before the payment due date will result in the levy of standard Credit Card interest rates on the balance outstanding. However, if partial payments made by the Cardholder do not cover the EMI amount for the relevant month, the balance EMI amount will also be subject to standard finance charge (including the late payment fee). 
    1. Illustration / Example:
       1. 12-month Loan on Phone facility availed under LOP facility = INR10,750
       2. LOP instalment for the month = INR1,000
       3. Other outstanding balances = INR2,000
       4. Total payment due for the month = INR3,000
       5. Minimum payment due = (5% multiplied by INR2,000) + INR1,000 = INR1,100 
    2. Scenario 1:
       1. Amount paid = INR1,200
       2. Amount outstanding = Total payment due − Amount paid = INR1,800
       3. Finance charges at the applicable rate will apply on INR1,800 in the next billing cycle.
    3. Scenario 2: 
       1. Amount paid = INR3,000
       2. Amount Outstanding = 0
       3. No finance charges will apply
11. According to the payment hierarchy effective since 05 August 2013, payments made towards the Credit Card outstanding will be settled in the order of minimum payment due, followed by ‘plans’ applied for, in other words, EMI, cash advances, purchase outstanding and Balance Transfer in descending order of interest rates. 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. 
12. Any payment made in excess of the Total Payment Due will only be adjusted to the future purchase outstanding in accordance to the said payment hierarchy. 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). 
13. To preclose the Loan-on-Phone facility, the Cardholder will be required to call HSBC PhoneBanking. 
14. Foreclosure of the facility will attract prepayment charges at the rate of 3% of the outstanding principal amount, subject to a minimum of INR250 chargeable by HSBC. 
15. HSBC reserves the right to recall the facility and debit the entire outstanding dues against the facility to the Credit Card account, if the Cardholder defaults on payment of due EMI. Due notice in this regard shall be issued by HSBC to the Cardholder. 
16. If the Cardholder requests for closure of the Credit Card before paying amounts due against the facility, the balance outstanding amount will be debited to the Credit Card account as one consolidated amount, which will need to be paid by the Cardholder before the account is closed by HSBC
17. No request from the Cardholder for change in card franchisee (Visa/MasterCard®) shall be entertained by HSBC during the facility availing period. 
18. No request from the Cardholder for change in the billing cycle shall be entertained by HSBC during the facility availing period. 
19. This Offer shall be subject to all applicable central/or state laws, rules and regulations.
20. 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 facility by another, whether similar or not, or withdraw it altogether. HSBC also reserves the right to discontinue the facility anytime at its unilateral discretion during the pendency of the facility. In such case, the facility availed by the Cardholder shall be recalled and the entire outstanding amount will be debited from the Credit Card account.
21. 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 applying for or availing the facility.
22. All decisions with respect to the facility shall be at the sole discretion of HSBC and the same shall be final, binding and non-contestable. Other than the specific entitlements available to the Cardholder under the facility, all other claims in this regard by the Cardholder are deemed waived.
23. All disputes arising from the facility shall be subject to the exclusive jurisdiction of the courts of Mumbai only.
24. The terms of the facility shall be in addition to and not in substitution of the Mobile Banking terms, Credit Card terms and other applicable terms & conditions. Usage of the Credit Card is governed by applicable terms and conditions, available on www.hsbc.co.in to go to homepage.
25. Tax liability, if any, will have to be borne by the Cardholder. 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 amended, would apply on our services, fees and charges with effect from 01 July 2017.
26. By applying for the facility, Cardholder will be deemed to have read, understood and accepted all the aforementioned terms and conditions in their totality.