What is an overdraft?
An overdraft is a ready credit facility that offers you extra cash whenever you need it, and for whatever purpose. Overdrafts provide you with the flexibility of funds when you need it most. There are several types of overdraft facility, see all overdrafts from HSBC.
What is the difference between a loan and an overdraft?
A loan is when you borrow a fixed amount of money for a fixed period of time. This is usually cheaper than an overdraft. If you have a regular, predictable income then a loan is often the recommended option.
If you don't know exactly how much you need to borrow or when you'll need it, an overdraft may be a better option. This allows you to borrow up to a certain amount without notice, and to make flexible repayments rather than being tied into a definite repayment schedule.
Overdrafts usually have a higher rate of interest than loans, but the cost can sometimes be reduced if they are secured against other assets such as investment or cash deposits.
Will I be charged interest for credit I haven't used?
No.
What are the factors affecting the Credit-to-asset Ratio change?
We closely monitor the credit-to-asset ratio for your secured assets which is subject to irregular changes due to market volatility. The credit-to-asset ratio is affected by various factors, including but not limited to the market capitalisation and profitability of the secured assets’ underlying company, turnover and price volatility of the secured asset etc.
I noted that from 8 September 2025, new applications and requests for limit increase of HSBC Premier Clean Credit, HSBC One Clean Credit, Personal Integrated Account Clean Credit and Personal Overdraft won’t be accepted. I’m an existing customer of these products. How does this change affect me?
If you’re an existing customer, you can continue using the service subject to all Terms and Conditions. However, you won’t be able to increase the limit of your facility.
If you cancel the service or request to decrease the limit, you won’t be able to increase your limit or apply for the same service again. From 8 September 2025, we won’t accept new applications and requests for limit increase.
From 31 October 2022 onwards, no new Secured Credit application will be accepted. I am an existing Secured Credit customer, can I continue to use the service?
You can continue to use the service as usual before and after 31 October 2022, subject to all applicable terms and conditions. If you cancel the existing service, you will no longer be able to apply for any new secured credit service following the cancellation. You can find more information about the interest rate, eligible assets and credit-to-asset ratio for your Secured Credit here.