CEBU, Philippines – Hong Kong Shanghai Banking Corporation (HSBC) has aggressively entered into the lucrative home loan product, offering Filipinos one of today's lowest rates in the housing consumer loans industry.
The bank has been doing good in the credit card business ever since. This time, HSBC wants to venture into another consumer loan product, taking advantage of the low interest rate environment and the real estate boost, said Ron Logan, HSBC senior vice president and head for personal financial services.
With fixed interest rate for one-year of 5.99 percent, HSBC aims to attract its clients, and potential customers to avail of the lowest interest rate in housing loan offered by the bank to jump start its entry in the home loan business.
"We want to see ourselves growing in home loan [segment], as we have grown other products," Logan said in a press conference.
Cebu's strong real estate growth should be complemented with good rates in home loan access, including acquiring condominium units, town houses, and subdivision housing products.
With the lowest 5.99 percent for one year, Logan said the bank "is taking a lower margin to grow" its home loan product in the Philippines.
According to Logan, the Philippine economy is in a growing trend, and that HSBC is taking advantage of the strong investors' confidence, and the real estate boost here.
Of the total 24 HSBC branches nationwide, two of which are located in Cebu. Logan believes that bank will be able to gain stronger market share in the province, because of the dynamic real estate sector here.
At present, HSBC's share in the home loan segment in Cebu is still very small. With its aggressive entry into this market, Logan said that the bank will be able to gain stronger market share in the next few years.
"We want to make a bigger statement," said Logan referring on the bank's decision to offer the lowest rate in the housing loan product in the country.
He said over the years, HSBC has not been very active in offering home loans to its customers and the Filipinos in general. This time, the bank is going to make this particular product a success, just like what it did in its credit card business.
Logan believes that the country's strengthening economic backbone is here to stay for the long term, fueled by the growing number of OFW (Overseas Filipino Workers) whose remittances helped the country to become resilient despite the external negative interventions.
HSBC also noted a dynamic consumer spending in the last few months, or even during at the height of the global economic slowdown-a good indication that the Philippines' economic health is not dependent on any other country's weakness.
"With HSBC's Home Loan, one has access to flexible features and world-class benefits that allow a customer to customize his loan to fit unique needs and requirements," he said. (FREEMAN)