High street bank HSBC has announced a unique proposal on its personal loans, offering to refund 25 per cent of interest payments for those who repay the total loan amount on time.
The new offer is designed to promote responsible repayment of debt for those who plan to borrow and repay a personal loan in a certain period and stick to that plan.
The special reward is available to both new and existing HSBC customers and, according to Joe Garner, head of UK personal financial services at the bank, "with Repayment Reward…rates will be better than most of the rates charged by [HSBC]'s competitors".
"When a bank sets its interest rates a part of that calculation takes into account the possibility that customers might miss repayments," Mr Garner explained.
"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."To read more about loans, click here.
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