How to get a personal loan for tax payments: All you need to know about loan applications

With the upcoming tax season in May, and the rush to pay individual income taxes, it's useful to know that credit cards aren't the only way to settle tax payments. You can also leverage tax loans offered by major banks as an option to pay off your tax debt. HSBC offers a 24-hour online application service for personal loans (e-loans), with an approval turnaround as fast as 1 day, making it quick and easy for you to settle your tax payments. It's that simple!

Does the loan apply to tax payments only?

If you don't have adequate cash on hand at the 1 May start of the individual income tax filing season for your overall spending needs, a tax loan could really come in handy. In addition to using a personal loan to pay off your tax bill, you can also use the funds for other purposes, such as home renovations, paying for a wedding, furthering your studies, or just as general cash flow.

How long is the personal loan period?

HSBC personal loans offer repayment periods ranging from 12 to 84 installments, spread over 1 to 7 years, and you can either apply for the phase-1 or phase-2 solution (note1), which offer matching interest rate schemes and different total percentage rates.

Does the loan amount matter?

The minimum loan amount is set at NTD100,000, and the maximum amount is NTD3,000,000, or the equivalent of up to 15 times your monthly salary. The loan amount is not restricted by the level of your tax payments. It's a good idea to assess your repayment ability based on your actual needs. If you run into difficulties over repaying the loan after borrowing and wind up having to defer your repayment, this will affect your credit rating.

What is the annualised percentage rate of total loan costs?

The annualised percentage rate is a benchmark rate derived by taking into account the loan's interest, account opening fees, and the 1-phase or 2-phase interest option chosen to help the applicant compare and judge whether the cost of taking on a personal loan is high or low. In order to shop around for the most suitable loan, you should compare the information from major banks before applying, taking into account factors like the Annualised Percentage Rate (APR) of different loan plans. The APR gives the annualised percentage rate of total costs derived from adding up the loan interests, and other fees and expenses.

Applying for a loan

24-hour online loan applications (e-loans) can be approved as quickly as 1 day. Existing cardholders and account holders can complete their applications very easily – no signatures, printed or mailed applications are required. New customers can complete an online form, and send scanned copies of the certifying documents to us online. Our staff will help you do the rest.

Take advantage of HSBC's early bird tax loan promotions: 0.88% for the first 2 phases, or phase-1 preferential interest rates starting from 0.1%, and phase-2 interest rates of 2.54%-13.19%.

Note 1.
"With prepayment penalty" (locked-in) plan
: Within 18 months after the loan disbursement date, in addition to the scheduled repayment installments, if the borrower wants to settle the loan fully or partially prior to maturity, he/she will be liable to pay a prepayment penalty to the Bank calculated using the following formula: Within 6 months after the loan disbursement date, 4% of the amount of principal prepayment (including partial or full repayment) will be charged as prepayment penalty; Within 7-18 months after the loan disbursement date, 3% of the amount of principal prepayment (including partial or full repayment) will be charged as prepayment penalty. However, prepayment due to a borrower's death, major injury, or critical illness will be exempted from prepayment penalty upon presenting the relevant certifying documents.

"No prepayment penalty" (open) plan: The borrower can make repayment or settle the entire loan at any time after the loan disbursement date without paying a prepayment penalty.