Business Loan - Secured

• Fixed interest rates and variable interest rates are available depending on product chosen
• Loan can be secured by bank deposits or investments, or Malta Government Stock or property depending on product chosen
• Loan can also be secured by a hypothecary charge over a residential property
  
• You will not pay any fees or additional interest if you repay your loan early

• Minimum – €2,000, Maximum – €200,000*
• Fixed interest rates starting from 3.5% per annum
• Loan repayments can be spread over a minimum period of 6 months to a maximum period of 7 years**
• Loan can be secured by bank deposits or investments, or Malta Government Stock
  
• Loan can also be secured by a hypothecary charge over a residential property
  
• A processing fee of 0.3% of loan amount is applicable, minimum €40 is applicable
• An additional processing fee of €250 is applicable in cases where loan is secured by a hypothecary charge over a residential property
  
• You will not pay any fees or additional interest if you repay your loan early

*Loan amount will depend on income, affordability and other criteria

**Other conditions may apply

The Annual Percentage Rate (APR) on a Business Loan of €10,000, repayable over 5 years at a fixed borrowing rate of 3.5% per annum, and subject to a processing fee of €40, will be 3.8%.

The loan will be repayable in 59 equal monthly instalments of €182.15 and one final instalment of €181.26.

The total amount paid after 5 years will be €10,968.11.

The maximum amount you may borrow is subject to your financial status, and to further approval by your branch. Terms and conditions may apply.

The Annual Percentage Rate (APR) on a secured Business Loan of €12,000, repayable over 7 years at a fixed borrowing rate of 3.75% per annum, and subject to a processing fee of €40, will be 4%.

The loan will be repayable in 83 equal monthly instalments of €162.95 and one final instalment of €161.83.

The total amount paid after 7 years will be €13726.68.

The maximum amount you may borrow is subject to your financial status, and to further approval by your branch. Terms and conditions apply.

• You can use the equity in your property as security for a business loan that would be repayable over a longer term than a normal business loan
• A HomeOwner loan can be used for business purposes to purchase a fixed asset. However, the term has to reflect the life span of the item being purchased.
• The maximum loan amount will depend on the level of your income, the value of your property and the outstanding balance of any loan that you might still have on your residential property
• HomeOwner Loans are offered at variable interest rates starting from 4.75% per annum
• Loans up to €25,000 may be repaid over a maximum period of 25 years or until retirement age whichever is the earlier. The term for loans over €25,000 is not to exceed 10 years. Consideration to extend term may be given if the purpose of the loan is to finance purchase of property.
• You will not pay any fees or additional interest if you repay your loan early
• To ensure that your loan is repaid in the event of death, having an adequate life assurance is essential. If you wish we can also provide a life policy to suit your needs.
• You must take out adequate buildings insurance. This should cover the cost of rebuilding your residence and we recommend that you review the level of cover from time to time to protect your investment.

The cost of a HomeOwner loan of €100,000, at a variable borrowing interest rate of 4.75% per annum with an interest and capital repayment for a term of 300 months.

The APR will be 5% per annum The loan will be repayable in 299 equal monthly instalments of €574.11 and one final instalment of €537.71 over a term of 25 years.

The total sum payable throughout the term of the loan assuming the interest rate remains unchanged will be €172,718.30.

Applicable charges on this loan are as follows – processing fee of €300; processing (legal) fee of €150; updating of searches fee of €41.70; and fee for post-deed checking of hypothecary charge of €30.

To apply for a secured business loan

Sole Traders\Unregistered Partnerships

• You must be residing and paying income tax in Malta
• Aged 18 years or over

Registered partnerships\Companies

• Registered in Malta
• Paying income\corporate tax in Malta

Other eligibility criteria may apply

To be eligible for a HomeOwner Loan 

• You must be an existing HSBC customer
• Own an untenanted residential property
• Sole trader
• Satisfy income and other criteria

Sole Traders\Partnerships

• Identity Card
• Evidence of income – Income tax returns together with Profit & Loss Accounts for the past two years

Companies

• Audited accounts for the past two years

We may also ask for other documentation, depending on the circumstances.

• Architect’s valuation report on our standard form, detailing the value of your property. In certain circumstances a Bank Appointed Architect may be appointed at the Bank’s discretion. Please refer with a business specialist for further guidance.
  

• Deed of purchase of your residential property
  

Prior to granting you a loan, an assessment on your financial position shall be performed by your business specialist.

Sales turnover is to be routed through an HSBC account from which loan repayments will be effected.

We are pleased to discuss the HSBC Fusion service in person at one of our branches. Simply click the below button and provide us with your details to arrange an appointment.