Microfinance pilot scheme a definite go

The highly-anticipated microfinance pilot scheme will begin loaning start-up capital to qualified business owners in the middle of this year.

The Hong Kong Mortgage Corporation, Ltd said the three-year microfinance pilot scheme aims to assist people who want to start their own business or receive training for skills upgrading or certification, but who lack the financial means or have difficulties in obtaining loans from traditional finance sources.

Applicants should be Hong Kong residents aged 18 or over, with no bankruptcy record, or have been formally discharged from bankruptcy, and with acceptable credit history.

Maximum loan amounts range from $100,000 to $300,000, depending on the use. The maximum payback period is five years.

Borrowers whose loans have a payback period of up to three years can enjoy a six-month repayment holiday. Those with payback periods of three to five years can enjoy a 12-month repayment holiday.

Executive Director and Deputy Chief Executive of the Hong Kong Monetary Authority Peter Pang said the corporation is in discussions with stakeholders on the details of the pilot scheme, and banks and voluntary agencies have expressed their interest in taking part.

“A few banks and voluntary agencies have expressed their interest in taking part. We are preparing to launch the microfinance pilot scheme in mid-2012,” Pang said.

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Tags: Hong Kong Mortgage Corporation, Ltd, Peter Pang