【100% Personal Loan Guarantee Scheme】Everything You Need to Know About the 100% Personal Loan Guarantee Scheme (Ways to Apply for Different Banks Included)
Following the 5th wave of the epidemic, the government announced in the 2022-23 Budget to extend the application period of the 100% Personal Loan Guarantee Scheme (PLGS) to the end of April 2023. Permanent Hong Kong residents aged 18 or above who have been unemployed for at least two months can apply for the scheme. The maximum loan amount will be increased from six times their previous salary to nine times, capped at HK$100,000.
Moreover, the maximum repayment period will also be extended from six years to ten years, and the principal moratorium arrangement will be further extended from 12 months to 18 months. The interest rate is only 1%, and borrowers can get a full refund of the interest paid when the loan is fully repaid.
100% Personal Loan Guarantee Scheme (PLGS) Application Details
Application period: 28th April 2021- end-April 2023
Maximum loan amount: HK$100,000
APR: 1% - Borrowers have the option to repay the interest on the loan only but not the principal itself for up to 18 months.
Maximum repayment period：Up to 10 years
Refund on the interest: Borrowers can get a full refund of the interest paid after the loan is fully repaid.
Applicable fees: No handling fees, set up fees or prepayment penalty. However, in case of overdue repayment, overdue interest and/or charge may be levied.
Purpose: Not limited but mainly to provide a source of financing to unemployed individuals who are suffering from cessation of regular incomes from unemployment during the COVID-19 pandemic.
100% Personal Loan Guarantee Scheme VS Regular Personal Loans
| 100% Personal Loan Guarantee Scheme | Personal Loans | |
|---|---|---|
| Eligibility | HK Permanent residents aged 18 or above who have been unemployed for at least two months | Permanent residents aged 18 or above who have met minimum salary requirements |
| Credit Scores | N/A | Good credit scores required |
| Application Period | 28th April 2021- end-April 2023 | Anytime throughout the year |
| Maximum Loan Amount | HK$100,000 | 21X Monthly Salary |
| APR | 1％ | About 1.78-6.8% |
| Maximum Repayment Period | 10 Years | 60 months in general |
| Refund on the Interest | Enjoy a full refund on the interest paid if the loan is fully repaid | N/A |
100% Personal Loan Guarantee Scheme Participating Lenders - Application Methods and Enquiry Hotlines
Applicants may apply through the following 12 participating banks, including 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, Standard Chartered Bank (Hong Kong) Limited, Chiyu Banking Corporation Limited and ZA Bank Limited. The list of participating lenders and their enquiry hotlines can be found below:
List of participating lenders:
| Participating Banks | Application Method | Enquiry Hotline |
|---|---|---|
| Bank of China (Hong Kong) | Website, APP & branch | 3988 2128 |
| The Bank of East Asia | Website & branch | 2211 1211 |
| China CITIC Bank International | Website & branch | 2287 6767 |
| China Construction Bank (Asia) Corporation | Website & branch | 2779 5533 |
| Dah Sing Bank | Website & branch | 2529 1338 |
| Hang Seng Bank | Website & branch | 2997 3882 |
| HSBC | Website & hotline | 2996 7288 |
| Industrial and Commercial Bank of China (Asia) | Website & branch | 2189 5588 |
| Shanghai Commercial Bank | Website & branch | 2818 0282 |
| Standard Chartered Bank | Website & hotline | 3408 1628 |
| ZA Bank | Website & APP | 3665 3665 |
| Chiyu Banking Corporation | Website & hotline | 2232 3625 |
Not eligible for the 100% Personal Loan Guarantee Scheme？Check out other personal loans!
If you are not eligible for the 100% Personal Loan Guarantee Scheme or if you are looking to borrow more, you can consider taking out a regular personal loan. MoneySmart compares the interest rate and APR of varying personal loan products available in the market, helping you to make an informed decision.
Who is eligible for the 100% Personal Loan Guarantee Scheme？
You must meet the following 2 requirements:
- Permanent HK residents aged 18 or above
- Unemployed for at least two months (unemployment proof required)
To apply, you must not be undischarged bankrupt nor subject to any bankruptcy petition or proceedings at the time of application.
If 100% Personal Loan Guarantee Scheme not for you, you can consider the following personal loans:
| Personal Loan | Interest Rate | Features | Repayment period |
|---|---|---|---|
| UA "NO SHOW" Personal Loan | 6.18% | Documents Free | 3- 60 months |
| Citi Speedy Cash | 1.78% | Loan amount as high as 12X monthly salary or HK$2,000,000 | 6 - 60 months |
| WeLend Personal Loan | 2.79% | No income proof required | 12 - 60 months |
| PrimeCredit Fixed Loan | 2.38% | No income proof required for loan amount HK$50,000 or under and cash will be disbursed within 24 hours | 3 - 60 months |
| Standard Chartered Personal Installment Loan | 4.94% | Salary is as high as 18X or HK$2,000,000 | 12 - 72 months |
| Promise Easy Loan | 4.49% | No documents required and approval all done online | 12 - 72 months |
Personal Loan Offers
WeLend Personal Loan
- The lowest APR
- 1.88%
- Total Amount Payable
- HK$308,640
- Total Interest Payable
- HK$8,640
- Monthly Payment
- HK$12,860
PrimeCredit Fixed Loan
- APR*
- 1.18%
- Total Amount Payable
- HK$303,600
- Total Interest Payable
- HK$3,600
- Monthly Payment
- HK$12,650
Promise Easy Loan
- APR*
- 4.49%
- Total Amount Payable
- HK$314,400
- Total Interest Payable
- HK$14,400
- Monthly Payment
- HK$13,100
FAQ
When can I apply for the 100% Personal Loan Guarantee Scheme?
- Application is open from 28th April to end April 2023.
Does early repayment penalty apply for the 100% Personal Loan Guarantee Scheme?
- Early repayment charges do not apply for the 100% Personal Loan Guarantee Scheme. Borrowers can enjoy full refund on interest if the loan is repaid in full.
In case of overdue repayment, will overdue interest charge be levied?
- Yes, although early repayment charges do not apply. You will still be charged overdue interest charges in case of overdue repayment.
Am I eligible for the 100% Personal Loan Guarantee Scheme if I am bankrupt?
- No, you are not eligible if you are undischarged bankrupt or subject to any bankruptcy petition or proceedings at the time of loan application.
What is the maximum repayment period for the 100% Personal Loan Guarantee Scheme ?
- You can repay it for up to 10 years under the 100% Personal Loan Guarantee Scheme .
Does the 100% Personal Loan Guarantee Scheme limit its purpose?
- No, but it is primarily designed to alleviate the impact brought by the 5th wave of the pandemic.
Will the 100% Personal Loan Guarantee Scheme affect my credit score?
- Similar to other loans, as long as you repay it on time, it won’t affect your credit score but help you build it.
How to calculate the maximum loan amount for the 100% Personal Loan Guarantee Scheme?
- It will be nine times your previous salary with a cap of HK$100,000.
What unemployment proof is required for the 100% Personal Loan Guarantee Scheme?
- Bank statements or passbook for 2 consecutive months issued within 3 months prior to the submission of loan application and (except for free-lancers, gig or casual workers) severance letter issued by the former employer or letter of termination of employment, expired employment contract, tax return or any official document showing cessation of employment issued by the former employer.
Which department will approve my loan?
- It will be approved by The Hong Kong Mortgage Corporation and the HK government will be the guarantor.
When will I be able to get the loan?
- The cash will usually be disbursed within 1- 3 days after a successful application.