HENRYs seeking loans surge 60% as living costs climb

The borrowers primarily applied for loans to repay debts and fund business expansions.

Loan applications from HENRYs (High Earners, Not Rich Yet) in Hong Kong have increased by 60% over the past two years amidst rising living costs, according to Lendela.

HENRYs, or those earning between $50,000 and $125,000 a month, are turning to alternative financing to reassess their financial plans due to economic uncertainty leading to notable shifts in credit behavior.

In the past two years, HENRYs frequently applied for debt consolidation, credit card debt relief, and business expansion loans, despite being typically associated with lifestyle spending.

The average loan size for HENRY borrowers during the period was 281,000, reaching up to $2.5m in 2024. Of the applicants, 15% have no existing debt, whilst 14% hold debts ranging from $500,000 to $1m.

Meanwhile, the number of borrowers with debts ranging from $150,000 to $2.5m increased. Lendela’s data also showed significant rises in loan applications across different income brackets:

• $50,000 to $75,000: a 30% increase
• $75,000 to $100,000: a 129% increase
• $100,000 to $125,000: a 179% increase

In addition, loan applications from HENRY borrowers in their 50s have surged by 167% over the past two years, whilst the majority are aged 30-39. These borrowers primarily come from the banking, finance, construction, hospitality, IT, and logistics sectors.