Get the Best Tax Loans Rates 2019

Updated November 2019

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

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Loan Details
HK$
HK$
Citi Tax Season Loan
Monthly
Payment
HK$5,736

2.01%

APR*

$206,480

Total Amount Payable

$6,480

Total Interest Payable

HK$5,736

Monthly Payment
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Key Features

APR as low as 2.01%
0% arrangement fee
Repayment term up to 60 months
Loan amount is up to 12 times your monthly basic salary or HK$2,000,000, whichever is lower
*Calculation based on loan amount of HK$1,500,000 and repayment period of 12 months; The Actual APR may vary for individual customers.

Repayment Summary

Principal Loan AmountHK$200,000
Total Interest PayableHK$6,480
Total Amount PayableHK$206,480
Annual Percentage Rate2.01%
Monthly PaymentHK$5,736
Repayment Period36 months
BEA Tax Season Loan
Monthly
Payment
HK$5,708

1.78%

APR*

$205,501

Total Amount Payable

$5,501

Total Interest Payable

HK$5,708

Monthly Payment
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Key Features

APR as low as 1.78%^
0% arrangement fee
Repayment period of up to 60 months
Loan amount of up to 14 times your basic monthly salary (maximum HK$4,000,000)*
^APR as low as 1.78% is for reference only. This only applies to SupremeGold customers and is calculated as for a loan amount of HK$500,000, with a monthly flat rate of 0.08%, and a repayment period of 12 months. Please note that actual APRs may differ. SupremeGold customers are required to indicate that they hold an "All-in-one Account" when applying online through the BEA website or through their mobile at the designated iloan platform www.hkbea.com/iloan and enter the promotion code “SG” to enjoy the exclusive Tax Season Loan offer. Customers who are not SupremeGold account holders will not be entitled to the exclusive Tax Season Loan offer open to SupremeGold customers without prior notice.
*Up to HK$4,000,000 loan amount for 12 / 24 months repayment period ; up to HK$1,200,000 loan amount for 36 / 48 / 60 months repayment period.

Repayment Summary

Principal Loan AmountHK$200,000
Total Interest PayableHK$5,501
Total Amount PayableHK$205,501
Annual Percentage Rate1.78%
Monthly PaymentHK$5,708
Repayment Period36 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.

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Tax Loan VS Personal Loan

Tax loan is different from personal loan in a number of ways. The former is a time-limited loan which is only available from every November- March/ April while the latter is a year-round product. Tax loan usually offers a better Annualised Percentage Rate (APR) than a personal loan. For example, DBS Tax Season Loan offers as low as 1.78% APR and Tax Season’s Standard Chartered Personal Instalment Loan (New Priority Banking clients) offers as low as 2.18% APR. Tax loan usually has a shorter payment term which is around 12-24 months with only a few plans offering up to 60 months. The loan amount is both up to 12-20X annual salary.

How to apply for Tax Loan?

Generally, you are eligible to apply if you are a Hong Kong resident who is 18 years old or above, with a stable income. The exact annual salary requirement varies from lenders to lenders. Applying for tax loan is simple. You can apply through a comparison website like MoneySmart and enjoy exclusive offers or apply through the official website of your desired lenders. Some lenders like Citibank can approve on the same day and disburse the funds on the next day and HSBC offers can approve and disburse the loan within 1 minute. Proof of identity, salary and residential address are also required when you apply. You may also be required to present your tax bill.

Fees for Tax Loans

To attract customers, many products such as Citi Tax Season Loan, DBS Tax Season Loan HSBC Personal Tax Loan, and BEA Tax Season Loan offer HK$0 handling fee. If you find you are unable to keep up the repayments on time, you should always talk to your money lenders to find alternatives such as extending the term of your loan instead of being charged late repayment charge. You will also be charged early redemption penalty if you decide to repay the tax loan earlier than the agreed term.

Annualised Percentage Rate (APR)

The annualised percentage rate (APR) is an index of borrowing cost. It is calculated based on a year, including the interest rate and all the applicable fees/charges such as annual fee/ service fee/ handling fee. APR is used as a simple way for customers to directly compare loan products. The lower the APR, the lower the borrowing cost. Some tax loan product offers as low as 1.78% APR such as BEA Tax Season Loan/ DBS Tax Season Loan.

Frequently Asked Questions for Tax Loans

Can tax loans only be used for paying tax?

No. Although tax loan is primarily designed for paying tax, lenders can use the money for other purposes such as marriage/studying, etc.

How much should I borrow?

It is best to avoid extra borrowing. A rule of thumb is your loan repayment should not account for more than 30% of your gross monthly income.

How long should I borrow for?

It is best to avoid borrowing for longer than the life of the thing you are paying for or else you end up you may end up still repaying your first tax loan when the next year's tax demand arrives.

How should I choose a lender?

APR should not be the only factor when choosing a lender. It is important for you to also consider the reputation of the lender, loan amount, how long it takes for approval and fund disbursement and the repayment period.

Do I save interest expenses if I repay the tax loan in full earlier than the agreed terms?

Yes, you may be able to save interest expenses but the early repayment charges may be so much that you end up paying more if you repay the tax loan in full earlier.