Get the Best Debt Consolidation Loans Rates 2020

Updated January 2020

Thinking about getting a debt consolidation loans in Hong Kong? MoneySmart.hk lets you compare and choose the best debt consolidation loans in Hong Kong with confidence.

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Loan Details
HK$
HK$
DBS Debt Consolidation Loan
Monthly
Payment
HK$8,499

3.8300%

APR*

$101,987

Total Amount Payable

$487

Total Interest Payable

HK$8,499

Monthly Payment
  • Up to HK$3,300 Coupons for applying for Debt Consolidation Loan

Key Features

Up to HK$3,300 Coupons for applying for Debt Consolidation Loan
Loan amount up to 21x monthly salary or HK$2,000,000
Instalment period up to 72 months
1-minute approval

Repayment Summary

Principal Loan AmountHK$100,000
Total Interest PayableHK$487
Handling FeeHK$1,500
Total Amount PayableHK$101,987
Annual Percentage Rate3.8300%
Monthly PaymentHK$8,499
Repayment Period12 months
WeLend Card Debt Consolidation Loan
Monthly
Payment
HK$8,443

4.3900%

APR*

$101,320

Total Amount Payable

$1,320

Total Interest Payable

HK$8,443

Monthly Payment
MoneySmart Exclusive: Round-trip tickets to Taipei upon successful application, extra $1,000 travel vouchers upon successful drawdown

Key Features

√ Promotional period: 1-Jan 2020 to 31-Jan 2020 (First and last days are inclusive)
√ New Customer can enjoy one round-trip flight ticket on hutchago.com (Prize value around HK$1,000), regardless of the drawdown results
, if the below conditions are fulfilled: (i) Successfully competed online applications of WeLend Debt Consolidation Loan (only the final submission of the Debt Consolidation is counted) (ii) Complete the entire application procedure (Including the checking of Transunion Credit Report) (iii) Hand in all required documents
√ Client whose successful drawdown with loan amount above HK$80,000, loan repayment period 12 months or above, will be able to enjoy an extra HK$1,000 travel voucher on hutchgo.com
√ Subject to terms and conditions of promotion. For terms and conditions details, please visit website of https://www.welend.hk/
WeLend’s A.I. Card Debt Master analyses your credit profile automatically and calculates the best interest-saving repayment plan for you instantly. Clear all your debt and revitalize your credit score
3 tailored repayment plan especially for you, all at once. Whether you want to reduce your interest, time, or monthly installment amount, take control of your finances and choose what you want!
Clear all your outstanding debt once and for all. WeLend helps you to plan ahead and resolve any remaining unsettled debt across different phases*. Settle your debt faster, improve your credit rating faster
Final approval is subject to the final submission of all relevant documents and the credit record of the applicant. WELEND LIMITED reserves its absolute rights on the final loan decision and on any disputes
Money Lender's License: 0754 / 2018

Repayment Summary

Principal Loan AmountHK$100,000
Total Interest PayableHK$1,320
Total Amount PayableHK$101,320
Annual Percentage Rate4.3900%
Monthly PaymentHK$8,443
Repayment Period12 months
BEA "Super Fast" Debt Clearance Plan
Monthly
Payment
HK$8,464

2.9100%

APR*

$101,564

Total Amount Payable

$364

Total Interest Payable

HK$8,464

Monthly Payment

Key Features

APR as low as 2.91%
Repayment period of up to 72 months
Loan amount of up to 21 times your monthly basic salary (maximum HK$1,200,000)
Cash rebate for new customers of up to HK$2,000
Successfully apply and submit documents online to get extra cash rebate of up to HK$300

Repayment Summary

Principal Loan AmountHK$100,000
Total Interest PayableHK$364
Handling FeeHK$1,200
Total Amount PayableHK$101,564
Annual Percentage Rate2.9100%
Monthly PaymentHK$8,464
Repayment Period12 months
Promise Easy Loan
Monthly
Payment
HK$8,533

4.4900%

APR*

$102,400

Total Amount Payable

$2,400

Total Interest Payable

HK$8,533

Monthly Payment
  • Up to HK3,500 Cash Rewards for new customers ▲ Welcome Hong Kong non-permanent residents with 3 months and above working visa validity※

Key Features

▲New Customer can enjoy an instant Cash Reward up to HK$3,500.
※ For Hong Kong non-permanent resident’s loan application, at least 3 months’ working visa validity is required.
Promotion Period: 1 December 2019 to 31 January 2020
Repayment period 6 months or above, maximum 84 months
“Instant Money Transfer” applies to loans that are transferred via Faster Payment System (FPS), which subject to the system maintenance periods.
*All examples and information of interest rate are for reference only, and any final approval is subject to actual circumstances of individual loan applicant.
Subject to terms and conditions of promotion. For terms and conditions details, please visit website of Promise (Hong Kong) Co., Limited.
Promise (Hong Kong) Co., Limited reserves the right to change any terms and conditions relating to this promotion. All loan approvals are subject to the final decision of Promise (Hong Kong) Co., Limited Money Lenders License Number: 1140/2019

Repayment Summary

Principal Loan AmountHK$100,000
Total Interest PayableHK$2,400
Total Amount PayableHK$102,400
Annual Percentage Rate4.4900%
Monthly PaymentHK$8,533
Repayment Period12 months
PrimeCredit Balance Transfer Loan
Monthly
Payment
HK$8,533

4.6400%

APR*

$102,400

Total Amount Payable

$2,400

Total Interest Payable

HK$8,533

Monthly Payment
  • up to $8,000 cash bonus + exclusive $500 octopus for successful applications via MoneySmart

Key Features

Instant approval and withdrawal, no income proof is required for loan amount of $50,000 or less
10 mins express approval. Cash will be disbursed within 1 hour from loan confirmation
No handling fee, no early settlement fee
From 1 January to 29 February 2020 (both days inclusive), up to $8,000 cash bonus + exclusive $500 octopus for successful applications via MoneySmart
For more loan and offer details, please visit PrimeCredit’s websiteMoney
Lender’s License No.: 383/2019

Repayment Summary

Principal Loan AmountHK$100,000
Total Interest PayableHK$2,400
Total Amount PayableHK$102,400
Annual Percentage Rate4.6400%
Monthly PaymentHK$8,533
Repayment Period12 months
Hang Seng Debt Consolidation Instalment Loan
Monthly
Payment
HK$8,619

6.4400%

APR*

$103,424

Total Amount Payable

$2,424

Total Interest Payable

HK$8,619

Monthly Payment

Key Features

Loan amount of up to 21 times of your monthly salary
Enjoy extra cash up to 8 times of your monthly salary on hand
Repayment periods up to 72 months
Personalised interest rate to save more than 89% of interest expenses
Above information is for reference only. Please refer to Hang Seng Bank website for the loan details.

Repayment Summary

Principal Loan AmountHK$100,000
Total Interest PayableHK$2,424
Handling FeeHK$1,000
Total Amount PayableHK$103,424
Annual Percentage Rate6.4400%
Monthly PaymentHK$8,619
Repayment Period12 months
Citibank Card Debt Consolidation Loans
Monthly
Payment
HK$8,673

7.6500%

APR*

$104,080

Total Amount Payable

$4,080

Total Interest Payable

HK$8,673

Monthly Payment
MoneySmart Exclusive: Up to 30% off on total interest payment + Extra Up to HK$4,000 Supermarket or Electronics Voucher!

Key Features

Repayment term up to 60 months
Loan amount up to 21X Monthly Salary or HK$1,200,000
$0 handling fee
Up to 30% off on total interest payment

Repayment Summary

Principal Loan AmountHK$100,000
Total Interest PayableHK$4,080
Total Amount PayableHK$104,080
Annual Percentage Rate7.6500%
Monthly PaymentHK$8,673
Repayment Period12 months
Dah Sing Credit Mastermind Instalment Loan
Monthly
Payment
HK$8,705

16.0400%

APR*

$104,459

Total Amount Payable

$3,359

Total Interest Payable

HK$8,705

Monthly Payment

Key Features

Monthly flat rate as low as 0.11% (APR 4.70%)#
Loan amount up to HK$1,200,000
Save interest up to 86%
Cash out up to 8 times of monthly income
Dah Sing e-Express Application service, offers instantly approved loan amount
Up to HK$2,888 Cash Rebate
HK$100 Cash Reward for successful online application
# The interest rate offer of as low as 0.11% monthly flat rate is only applicable to "Selected Customers". On the assumption of a HK$1,000,000 loan amount, 60-month loan tenor and 0.11% monthly flat rate, 1.1% p.a. loan handling fee, APR including HK$2,888 Cash Rebate is 4.70% (assume the Bank credits the cash rebate at the 4th month after the loan drawdown)

Repayment Summary

Principal Loan AmountHK$100,000
Total Interest PayableHK$3,359
Handling FeeHK$1,100
Total Amount PayableHK$104,459
Annual Percentage Rate16.0400%
Monthly PaymentHK$8,705
Repayment Period12 months
Standard Chartered Debt Consolidation Program
Monthly
Payment
HK$8,754

9.6000%

APR*

$105,052

Total Amount Payable

$5,052

Total Interest Payable

HK$8,754

Monthly Payment
MoneySmart Exclusive: Up to HK$2,000 Cash Voucher + Extra Up to HK$5,000 Voucher!!!
  • Exclusive Online Offer up to HK$2,000 Cash Coupon

Key Features

APR as low as 2.15% with 0% handling fee
Monthly flat rate as low as 0.092%
Loan amount: Up to HKD2,000,000 or 18x salary (whichever is lower)
Loan tenure up to 72 months
Up to HK$2,000 Cash Coupon

Repayment Summary

Principal Loan AmountHK$100,000
Total Interest PayableHK$5,052
Total Amount PayableHK$105,052
Annual Percentage Rate9.6000%
Monthly PaymentHK$8,754
Repayment Period12 months

The APR includes the basic interest rate, as well as any other fees and charges (i.e.: Handling Fee) so that it reflects the actual total cost of borrowing. The actual APR applicable may differ, please check with the provider to confirm your final APR based on your loan.

Disclaimer: At MoneySmart.hk, we strive to keep our information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. All financial products and services are presented without warranty. Additionally, this site may be compensated through third party advertisers. However, the results of our comparison tools which are not marked as sponsored are always based on objective analysis first. To borrow or not to borrow? Borrow only if you can repay!

What is a Debt Consolidation Loan?

A debt consolidation loan (sometimes called debt consolidation program or plan) is a repayment scheme that combines multiple credit card and unsecured loan balances into one big loan

Credit cards, lines of credit, and certain unsecured loans usually come with very short repayment terms (e.g. one month) and very high-interest rates (e.g. 30% per annum) if you do not repay within that period. Combine these two characteristics, and it’s not hard to see how such debts can quickly spiral out of control.

Unlike a personal loan where the bank disburses cash to your account, with a debt consolidation loan, the bank pays off all your debts instead. The money is disbursed to all the financial institutions that you owe. Meanwhile, you can focus on repaying just one loan instead of juggling multiple debts.

Debt consolidation loan repayments are a lot more manageable than credit card bills, because the loan has a much lower interest rate. You can also choose a loan tenure that results in a manageable monthly repayment amount. This way, you can clear your debts much more effectively and cheaply than if you were to try and pay your credit card bills.

When Should You Consider a Debt Consolidation Loan?

As long as you are struggling with credit card or unsecured loan debts - that is, you can no longer clear them with regular monthly repayments - then consider a debt consolidation loan. Benefits include:

Fixed Repayment Plan

Rather than getting a shock with your credit card bills, with a debt consolidation loan you would know how much to repay every month and can plan for it as a regular expense. It is also more convenient to make just one payment a month instead of managing multiple accounts.

Lower Interest Rates

Because credit card interest rates and late fees tend to be very high, you can potentially lower the total interest paid with a debt consolidation loan. Also, you would also pay interest on just one loan rather than on multiple bills. However, if you choose to reduce your monthly repayments by opting for a very long loan tenure, you might end up paying more in interest.

Debt Consolidation Loan vs. Personal Loan - What’s the Difference?

A debt consolidation loan is actually a type of personal loan, and you might be wondering if there is any difference between them and if one might be better than the other for clearing debt. To recap, when you take out a debt consolidation loan, the bank or financial institution will settle your debts on your behalf, and there is no need for you to do it yourself. In most cases, you do not get any cash. If you are facing cash flow issues on top of your credit card bills, that might be an issue for you.

On the other hand, you get funds in cash with a personal loan. In theory, you can use the disbursed cash to pay off your credit card bills once and for all and repay the personal loan according to the repayment schedule. This method allows you to have cash on hand, but it is clearly for people with plenty of self-discipline! There are much fewer options for debt consolidation loans than there are for personal loans, and some banks have stricter requirements for the former than the latter. So if you find yourself unable to get a debt consolidation loan approved, you may want to adopt the personal loan method. Personal loan approval is also usually faster.

In addition, consider the interest rate. A single financial institution may quote a different APR for their debt consolidation loan and personal loan, because of the perceived difference in risk. If you are eligible for both, you might want to opt for the one with the lower APR to reduce the total interest paid. Typically, it is easier and possibly cheaper to opt for a personal loan if you want to pay off a relatively small amount of money. But if you owe a lot of money to many creditors, you might find a debt consolidation loan less stressful.

Which is the Best Loan for Consolidating Debt?

There is no one-size-fits-all, overall “best” debt consolidation loan. This is because such loans are customized for each individual scenario, so the repayment periods, loan amount, and interest rate may fluctuate depending on your financial situation.

When choosing between debt consolidation loans, the loan amount is important. If the approved loan limit is insufficient to consolidate your debts, then you will need to service both your debt consolidation loan and any unpaid balances.

Also crucial to consider is your ability to repay the debt consolidation loan. Such loans only consolidate debt, not make it magically disappear! Make sure that the monthly repayments are manageable such that you still have a healthy amount of funds left over, and that the repayment period is something you can commit to.

If you have huge debts, you may want to look at debt consolidation loans with longer tenures, such as 72 months instead of 60. Just bear in mind that the longer the tenure, the more interest you will end up paying.

Last but not least, compare the costs of borrowing. These include not just the annual interest rate or APR, but also any penalties or fees that the bank might charge for scenarios like early repayment of the loan.

Frequently Asked Questions

Will I qualify for a consolidation loan?

Debt consolidation loans are typically offered only to Hong Kong permanent residents aged 18 and above (sometimes higher, e.g. 21 years old for DBS). Foreigners or non-permanent residents may have to turn to a personal loan in order to clear their debts. You also need to meet certain employment and/or salary requirements. For example, the Citi Card Debt Consolidation Program requires applicants to have a monthly salary of HK$6,000 or above. You may need to show proof of full-time employment.

What documents do you need to apply for a debt consolidation loan?

Unlike personal loans which can sometimes be obtained with minimal documents, debt consolidation loans typically require the full suite of supporting documents. These include identity proof (your Hong Kong ID showing that you’re a permanent resident), residential proof, salary proof or bank statements, and possibly other documents.

Do consolidation loans hurt your credit score?

Yes, you may see a temporary dip in your credit score when you apply for a debt consolidation loan. It is, after all, a new loan account, so (just like taking out any other loan) your credit score will drop temporarily. Over time, however, you should see your credit score increase as long as you make your loan payments on time.

Can I use my credit card after debt consolidation?

It depends on the terms of the debt consolidation loan. In some cases, your account may be closed after the bank clears your debt. In others, the bank simply reduces the credit card balance to $0, so you may still be able to use it. Do review your budget and make sure you do not incur additional debt, though.