Key Facts Statement – Flexi Instalment Plan

This document is for information purposes, summarising key product features, and is not intended to replace any terms and conditions.

Product description and key features

Description

A Flexi Instalment Plan (FIP) is a facility that allows credit cardholders to convert eligible card purchase transaction(s) into a fixed term repayment arrangement with a fixed rate of interest and equal monthly instalments.

Key Features

General: Credit cardholders may apply to convert a single or up to 10 purchase transactions into a single instalment plan with repayments over a fixed tenure of between 3 and 36 months. Applications can be made, using the mobile banking app or by calling the number on the back of your card, after the purchase transaction(s) has (have) been completed.

We will endeavor to process the Flexi Instalment Plan within 5 Business Days of your FIP being approved by us.

Eligibility: Your eligibility will be determined according to your financial history and current circumstances including data available on the Al Etihad Credit Bureau where applicable. The minimum transaction amount eligible for conversion into a FIP varies from merchant to merchant. To find out the minimum eligible amount for a specific merchant, you may refer to www.hsbc.ae/FIP. On the mobile banking app, you may convert a minimum of AED 1,000 into a FIP (either with one transaction or a combination of transactions).

The flexi instalment amount, any applicable fees and the total interest payable on your plan, will be deducted from your available credit card limit, therefore your available card limit must be sufficient to cover these amounts.

Rates and Terms: We will confirm to you the applicable interest rate and the amount and number of your Equal Monthly Instalments (EMI), which will depend upon the FIP tenure you have selected, before you proceed with the Flexi Instalment Plan. Your EMI will become part of your monthly minimum credit card repayment.

Your FIP balance will be included as part of your credit card statement.

For full details refer to the Flexi Instalment Plan terms and conditions at www.hsbc.ae/terms. In addition, FIP offers can be found on our web site at www.hsbc.ae/FIP. Rates and terms, including the minimum purchase amount, vary from merchant to merchant.

What you pay - interest/profit rates, fees and charges

Interest Rate/ Annual Percentage Rate (APR)

Flexi Instalment Plans have an annual Interest Rate (fixed)/Annual Percentage Rate starting from 0.00% to 29.88%. The actual rate you pay will be dependent on the tenure / term of your plan, your individual circumstances, promotional offers available from the Bank and partnership offers from our merchants. The applicable interest rate is fixed for the duration of the Flexi Instalment Plan.

If an interest rate applies to your FIP, we will charge this for the subsequent number of statement cycles for which it has been approved. For example, if you have taken a FIP for 6 months, the FIP interest rate applies on your outstanding FIP amount for the 6 subsequent statement cycles post approval. The interest rate will remain fixed for the period of your FIP. We will apply the interest rate on a monthly basis to your outstanding Flexi Instalment Plan balance as it reduces each month (i.e. as you pay each scheduled Equal Monthly Instalment). This means that the amount of interest that you pay, as a proportion of your Equal Monthly Instalment, will decrease over the period of the Flexi Instalment Plan as your outstanding balance reduces. This is known as a reducing balance method.

We calculate and accrue interest on the basis of your FIP tenor in months at the FIP interest rate communicated to you. The interest charge is applied to your FIP balance on each statement date of your credit card during the FIP term and is included, as part of your EMI in your monthly payment due for the relevant statement cycle.

Fees and Charges

The following is a summary of some of the applicable fees and charges (for all other applicable fees and charges, please refer to the HSBC Schedule of Services and Tariffs, available on our website www.hsbc.ae):-

  • A Processing Fee of 2.00% (2.10% inclusive of VAT) of the purchase amount will apply for instalment conversions of education related purchases. This is a one-time fee which is non-refundable (subject to your cooling-off right). No Processing Fee will apply on other instalment conversions.
  • A Late Payment Fee of AED 230 (AED 241.5 inclusive of VAT), per instance of a late or missed EMI.

Fees will be treated as a regular retail purchase, added to your card balance and will accrue interest at the purchase interest rate for your card if not paid in full by your next payment due date.

What if you repay your flexi instalment plan early?

A FIP can be cancelled at any time by calling the number on the back of your card, no early settlement fee will be charged, but the outstanding balance will be added to your credit card balance and unless it is paid in full at next statement date, interest at the card rate for purchases will apply.

Your right to cancel

You have a 5 Business Day cooling-off period starting on the Business Day after you enter into the Terms. This means that whilst we will immediately process your Flexi Instalment Plan request as soon as we approve your application, you may cancel the Flexi Instalment Plan during this period and without penalty. We will refund any fees we have charged you, for example any processing fee, and we will not charge you any interest due from you under the Flexi Instalment Plan terms. We will not be able to refund you any third party fees. When we cancel your plan, the amount of the plan will be treated as retail spend going forward, as if the Flexi Instalment Plan did not apply, and different interest rates, fees and charges will apply.

Ending your agreement early

You can fully repay the Flexi Instalment Plan before the end of your plan by calling the number(s) at the back of your Card and making full payment towards your Flexi Instalment Plan outstanding balance. You may be subject to early settlement fees. Please visit our Schedule of Services and Tariffs on www.hsbc.ae for all applicable fees and finance charges. We will not be able to refund any third party fees charged as a result of your Flexi Instalment Plan or any fees you have paid to us.

What are your primary obligations?

The Terms and Conditions applicable to your Agreement with us, which will be provided to you for review before you sign, set out the terms of the contract between us including your obligations to us and ours to you, including but not limited to the following:

  • pay your Equal Monthly Instalment on or before the due date throughout the FIP term,
  • do not exceed your credit limit,
  • ensure HSBC continues to have updated contact information in case HSBC wants to contact you for any missed payments but not able to get through.

Your Credit Card debt is repayable on demand; we can choose to demand repayment of the entire amount, including your FIP balance, at any time.

This is not a comprehensive list of your obligations, for fuller details refer to your HSBC Personal Banking Terms and Conditions, HSBC Credit Card Terms and Conditions and the Flexi Instalment Plan Terms and Conditions. You will be expected to meet all of your obligations throughout the duration of your Agreement and there will be consequences if you do not (see Fees and Charges and Key Risks sections).

Security/guarantees/collateral/co-signatory – what do we require?

No security/guarantee/collateral/co-signatory is required for booking a Flexi Instalment Plan. Any existing security you may have provided for your Credit Card will apply to this product.

Changes to your terms and conditions

We reserve the right to make changes to your Flexi Instalment Plan Terms and Conditions after you have signed them immediately where we are required to do so under Laws or applicable Regulations or by providing you with 60 days’ advance notice if the change is for one of the specified reasons set out in the Flexi Instalment Plan terms, for example, a change to the method we use to calculate fees, charges and interest, a change to make the terms and conditions clearer to you; or a change for your benefit.

We may also change any applicable fees and charges included in the Schedule of Services and Tariffs (or introduce new fees and charges, or remove them) by providing you with 60 days’ notice.

We’ll treat your non objection or continued use of your FIP as your acceptance of the changes. At any time during the term of your FIP, if you are unhappy with any changes made by us you have the option to end the FIP in accordance with the early settlement conditions set out in section 12.2 of the Flexi Instalment Plan terms.

What are the key terms?

Key Limitations / Exclusions

You will not be able to convert a transaction into a Flexi Instalment Plan if you have insufficient available credit limit to cover the total transaction amount, plus total interest to be charged for the full duration of the FIP term, plus any applicable fee.

You may only convert purchase transactions made with participating merchants. Minimum transaction thresholds apply.

Throughout the term of your FIP, your available credit limit will be reduced by the flexi instalment amount outstanding, plus total interest payable (whether billed or not), plus any fees. Your credit limit will be restored as each Equal Monthly Instalment is successfully paid.

The ability to book a Flexi Instalment Plan with more than one transaction at a time may or may not be provided and customers might only see this option available on some occasions and not on others. Thisis depending on the Bank’s internal criteria and assessment.

You cannot partially pre-pay the Flexi Instalment Plan or make overpayments. If you want to early settle your FIP you need to pay off the entire Flexi Instalment Plan balance (see ENDING YOUR AGREEMENT EARLY). Any overpayments will be allocated to your Credit Card in accordance with the Credit Card Agreement Terms.

Key risks

What if I miss a payment?

You must pay your EMI every month throughout the FIP term. If you miss a payment, the outstanding instalment amount will become part of the retail balance outstanding on your card and it will fall due for payment in the subsequent monthly statement. If you fail to pay your EMI on two consecutive occasions, the total outstanding plan amount will be added into the total outstanding of your card and will be due in the subsequent monthly statement. The interest rate will also switch to the applicable purchase rate and interest will be charged using your daily average balance. We will not charge you interest on accrued interest. Additional interest and Late payment fees may also be charged if you miss a payment (see WHAT YOU PAY).

It’s important you meet the FIP Terms and Conditions before and during your Flexi Instalment Plan, the following may apply in case you do not: -

  • We will not be able to process your Flexi Instalment Plan;
  • If you miss a repayment – please see ‘what if I miss a payment’ above for more information;
  • We may demand immediate repayment of your Flexi Instalment Plan. Interest, fees and charges will continue to accrue until you have fully repaid us and this will result in you paying more.

The Bank is not responsible for the goods or services you purchased under the Flexi Instalment Plan and any dispute about them should be resolved by you directly with the merchant. You are still responsible to repay your EMI even where you make a claim against a merchant, or return or stop using the goods or services. The merchant doesn’t have the authority to bind us or any member of the HSBC Group and we won’t be liable for any statement they make before or after your application for the Flexi Instalment Plan.

If you convert a purchase into instalments but subsequently cancel the purchase and get a credit from the merchant on your card, you’ll need to contact us to cancel your FIP or your FIP will continue.

If your credit card is cancelled or your card agreement is terminated before your FIP is repaid, the sum of all outstanding instalments will be immediately due and payable.

Your right to complain

If we do not deliver the standard of service you expect or if you have a concern, the easiest way to make a complaint is by emailing us at contactus.me@hsbc.com. Alternatively, you can contact our call center number on the back of your card. Further details of our complaints process can be found on our website. If we are unable to resolve your complaint to your satisfaction you may complain to the Central Bank of the UAE

Customer Full Name: .................................................................................................................................................
Country of Residence: ................................................................................................................................................
Location where this form is signed: ...........................................................................................................................
Date: ...........................................................................................................................................................................
Signature: ...................................................................................................................................................................

If we do not deliver the standard of service you expect or if you have a concern, the easiest way to make a complaint is by emailing us at contactus.me@hsbc.com. Alternatively, you can contact our call center number on the back of your card. Further details of our complaints process can be found on our website. If we are unable to resolve your complaint to your satisfaction you may complain to the Central Bank of the UAE

Customer Full Name: ................................................................................................................................................. Country of Residence: ................................................................................................................................................
Customer Full Name: ................................................................................................................................................. Location where this form is signed: ...........................................................................................................................
Customer Full Name: ................................................................................................................................................. Date: ...........................................................................................................................................................................
Customer Full Name: ................................................................................................................................................. Signature: ...................................................................................................................................................................

© Copyright. HSBC Bank Middle East Limited 2022 ALL RIGHTS RESERVED. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of HSBC Bank Middle East Limited.

Issued by HSBC Bank Middle East Limited U.A.E Branch, PO Box 66, Dubai, U.A.E, regulated by the Central Bank of the U.A.E for the purposes of this promotion and lead regulated by the Dubai Financial Services Authority. CRN: CC032722.

Effective Date: 07 April 2022.