What different types of loan are there?

Being clear about your reason for borrowing, as well as the finer details, can help you find the right loan for you.

Some types of loans you may come across include:

Secured loans allow you to borrow money against an asset of value such as your home, car or cash.

This asset acts as 'security' for the loan. For example, a mortgage is a type of secured loan because the lender can repossess and sell the property if you’re unable to meet the repayments.

That’s why it’s important to think carefully about securing debts in this way. 

An HSBC Personal Loan can be secured against your existing assets, like cash.

You can also apply for a secured loan to pay for education fees, using fixed deposits or savings account proceeds on deposit at HSBC Bermuda as security.

Unsecured loans – also known as personal loans – allow you to borrow money from a lender, such as a bank. You’ll agree to make regular repayments over a fixed term – until the loan, plus interest, is repaid in full. Unsecured loans aren't tied to an asset, such as your home.

They can be helpful if you want to borrow money for home improvements, such as a new kitchen, buy a car, fund a wedding or consolidate debts.

A joint loan is when you take out a loan with someone you trust, such as a partner, relative or friend. This can be a secured loan, such as a mortgage, or an unsecured personal loan.

If you want to apply for a joint loan with HSBC Bermuda, please make an appointment make an appointment This link will open in a new window or call us on +1 441 299 5959.

Before taking out any type of loan, make sure you’re aware of all the fees and charges. And calculate your potential loan repayments to make sure you can afford them.