5 July 2006
Personal loan customers with one of the UK's largest banks are to receive cash rewards for successfully meeting the terms of their loan agreement.
HSBC's Repayment Reward scheme ha been introduced to customers taking out a loan over the next three months.
They will be handed back a quarter of the interest they have paid on the loan if they repay the loan on time.
"We recognise that customers should be rewarded for choosing HSBC, staying with us and honouring the terms of their loan agreement. With Repayment Reward, HSBC's personal loan rates will be better than most of the rates charged by our competitors," said Joe Garner, head of UK personal financial services at the bank.
"When a bank sets its interest rates a part of that calculation takes into account the possibility that customers might miss repayments. If a customer is conscientious enough to meet all their repayments in full until their agreed completion date, then we should recognise that and give something back," he added.
The bank says that it hopes the scheme might also help to encourage responsible repayment of debt.
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