Thinking about getting a Lending Companies in Hong Kong? MoneySmart.hk lets you compare and choose the best personal loan in Hong Kong with confidence.
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Licensed money lenders are usually more nimble than banks, so you can usually get a personal loan approved by a money lender sooner - which would be crucial if you need to borrow money for a sudden emergency.
In some cases, money lenders don’t even require supporting documents from you, which makes the process even quicker. For example, WeLend has a No Document Loan, where you do not need to submit income or address proof.
Many moneylenders offer online loan applications for customers, which is appealing considering how quickly and conveniently you can get a loan this way.
Money lenders may charge higher APR than banks, but on the flip side, they usually offer more flexible repayment options, and it might make more sense to go with a money lender if you plan to repay the loan in a very short period (less than a year). While most banks charge fees like 1.5% or 2% if you repay the loan amount ahead of schedule, licensed money lenders typically do not charge such fees. So if your cash flow allows for it, you have the freedom to clear your debt earlier.
Money lenders usually restrict the amount a person can borrow if only the minimum documents are submitted.
It would be wise to spend time to read and understand the moneylender’s terms of the agreement . It is important to find out if collateral or guarantor is required. You also need to find out if you will be penalised for making advance payment and the interest rate for late repayment.
APR (annual percentage rate) is your interest rate stated as a yearly rate, which shows your borrowing cost. An APR for a loan can include fees you may be charged, like handling fees. APR is important because it can give you a good idea of how much you will pay to take out a loan. The lower the APR, the cheaper the loan is.
You should always do your due diligence to protect yourself from online fraud and scams, though. For example, make sure the money lending site is encrypted (look for the padlock icon) and that the URL is correct. You should also read the terms and conditions carefully to protect yourself from unexpected circumstances.
Most licensed money lenders do not stipulate specific loan limits; instead, they personalize the loan limit based on each applicant’s background, financial situation, and income.
It depends. The Money Lenders Ordinance is a set of laws that regulate money lending companies in Hong Kong. These are typically meant to protect the consumer. For example, money lenders are prohibited from lending money at more than 60% per annum effective interest rate. Money lenders are required by law to follow these rules, but of course, there are unlicensed ones with illegal practices as well.
Simply check the Hong Kong Companies Registry for the most updated list of licensed money lenders. You can find this on the Companies Registry website. Should you encounter a company that claims to be licensed, you can also check CR for lists of expired, dismissed and withdrawn money lending licenses.