HKMCI starts 100% personal loan guarantee scheme applications

The government will accept applications for six months.

The Hong Kong Mortgage Corporation Insurance Limited announced it will start accepting applications for the 100% Personal Loan Guarantee Scheme for six months, starting 28 April.

“Hong Kong’s economy has been hard hit by the COVID-19 pandemic, and the labour market faces severe challenges,” Financial Secretary Paul Chan said.

“This scheme aims to provide a supplementary financing option to individuals suffering from cessation of main recurrent incomes, to help them tide over the interim difficulty.”

Chan announced the scheme during the 2021/22 national budget statement in February.

Hong Kong residents, aged 18 or above, who have been unemployed for at least two months may apply for the scheme. They will also be required to present proof of their previous employment from January 2020 to February 2021.

The scheme could grant a maximum amount worth six times the applicant’s average monthly income, or $80,000, whichever is lower. The repayment period is up to six years with an option of 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.

Applicants may apply in any of the ten participating banks in Hong Kong, such as the Bank of China (Hong Kong) Limited, The Bank of East Asia, Limited, China CITIC Bank International Limited, China Construction Bank (Asia) Corporation Limited, Dah Sing Bank, Limited, Hang Seng Bank, Limited, The Hongkong and Shanghai Banking Corporation Limited, Industrial and Commercial Bank of China (Asia) Limited, Shanghai Commercial Bank Limited, and Standard Chartered Bank (Hong Kong) Limited.

Later in May, the Chiyu Banking Corporation Limited and ZA Bank Limited will also start receiving applications along with other lenders.