HSBC is launching a scheme where customers receive a repayment reward on personal loans.
The reward refunds a quarter of the total interest paid during the period of the personal loan.
This cuts the cost of the personal loan and promotes responsible payment of debt, the company claims.
Available to all customers taking out a personal loan with HSBC from July 1st 2006, 25 per cent of the interest will be refunded upon receipt of the final payment.
Joe Garner, head of UK personal financial services at HSBC, said: "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, Mr Garner claims.
He adds that if customers are "conscientious enough" to meet all their repayments in full until their agreed completion date, then the company should "give something back".
HSBC provides a variety of services to its customers, including banking, credit cards, savings accounts and mortgages.






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