HKMCI approves $1b in personal loan

More than 14,000 applications were approved, as of 25 June.

The Hong Kong Mortgage Corporation Insurance Limited (HKMCI) has approved 14,233 applications for the 100% Personal Loan Guarantee Scheme with a total of $1b.

The applicants received an average loan size of $71,000, Financial Services and Treasury Secretary Christopher Hui said before the Legislative Council.

The applications that have so far been approved accounted for 31% of the 46,411 total applicants.

“The borrowers of the approved loans came from different industries, including the transportation, logistics, retail, construction, catering, tourism, and hotel sectors,” Hui said.

Of the total applications, 21% were either duplicated or have subsequently been withdrawn by the applicants.

Around 3% were rejected over non-compliance with the eligibility criteria. This includes failing to submit proof of past employment or cessation of main recurrent incomes.

Meanwhile, the remaining applications are pending submission of other required documents and information.

Under the scheme, beneficiaries could receive a maximum amount worth six times their average monthly income, or $80,000, whichever is lower. The repayment period is up to six years with an option of the principal moratorium for the first 12 months.

The effective interest rate is fixed at 1% per annum. A borrower will receive a full refund of the interest paid after the loan is fully repaid at or by the end of the repayment period.