Thinking about getting a tax loan in Hong Kong? MoneySmart.hk lets you compare and choose the best tax loan in Hong Kong with confidence.
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Comparing loan plans are not only about interest rates but the total costs of your loan, such as the total amount, repayment period, and handling fee. So, Annual Percentage Rate (APR) expressed as a percentage of the actual yearly cost of a loan over the term. It is the best indicator when doing the comparison of different loan plans.
During the tax season, Hong Kong banks and private financial lenders provide tax loans in a lower interest rate with longer repayment, some of them even extend to 48 months. So that you are able to manage cash flow with higher flexibility.
Lower interest rates, simpler application and fewer limitations are highlights. As long as you’re age 18+ and earning HK$60,000+/year or HK$5,000+/month, you’re welcomed to apply for tax loans. Bring a copy of your latest tax slip and you’re good to go!
The calculation of APR includes all the interests, admin fees and handling fees of a tax loan. That’s why APR is the best way to compare the actual expenses of tax loans.
Banks and private lenders usually launch tax loan offers from October to April of the next year. Out of all loan promotions, cash rebate is the most common one – the more you borrow, the more rebates you can get.
Some tax loans may look attractive with an extremely low interest rate. But everything come at a price — the banks will ask you to set up an account and make a huge deposit first; or they’ll set a bottom limit to your borrowing amount, then you’ll have to borrow a loan of $1,000,000+ to get the lowest interest rate.
If you’re 18+ and earning HK$60,000+/year or HK$5,000+/month, simply bring a copy of your latest tax slip, you’re qualified.
Banks and financial lenders usually launch tax loan offers from October to April of the next year.
It depends on your salary. Banks and financial lenders can borrow you a tax loan at maximum 8x to 12x of your monthly salary.
Normally it’s 6 to 24 months for tax loans. Banks and financial lenders will set you a fixed repayment amount. The longer the repayment period, the lower the monthly repayment amount, and the higher the interest rate.
Some banks not only calculate interest with monthly flat rate, but they also charge you a handling fee, which is usually 1% of your loan amount.
The annualised percentage rate of tax loans is between 2% to 11%, depending on your loan amount and repayment period.
You’ll need these are the documents for your tax loan: