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What are the requirements for applying for the “100% Personal Loan Guarantee Scheme ” under the SME Financing Guarantee Scheme?

The ongoing novel coronavirus pneumonia has plagued the economic development of Hong Kong. Earlier, Financial Secretary Paul Chan Mo-Po mentioned the SME Financing Guarantee Scheme, also known as the “100% Personal Loan Guarantee Scheme ” in this Budget. enterprises for capital turnover.

As of June, last year, more than 30,000 applications for the “100% Personal Loan Guarantee Scheme ” had been received, of which nearly 90% had been approved, with an estimated amount of HK$79.5 billion.

Introduction to 100% Personal Loan Guarantee Scheme

The “100% Guaranteed Preferential Loan ” under the SME Financing Guarantee Scheme was first proposed by the Financial Secretary, Paul Chan, in the 2020-21 Budget.

The Financial Secretary pointed out that since the outbreak of the epidemic in early 2020, the Hong Kong economy has been facing downward pressure. The economy has contracted for six consecutive quarters, the longest recession in history.

In view of this, the “100% Personal Loan Guarantee Scheme” managed by The Hong Kong Mortgage Corporation Limited aims to “play a timely role” with the government’s preferential loan, so that enterprises affected by the epidemic can “play a timely role”. The beneficiaries are used for capital turnover, alleviating the salary, or rent pressure of SMEs, and reducing closures and layoffs.

100% Personal Loan Guarantee Scheme Details

loan annual interest rate

The SME Financing Guarantee Program is 100% guaranteed by the government, and the guaranteed fee is completely waived when corporate loans are made. Furthermore, the program will provide eligible businesses with preferential loans at an annual interest rate of 2.5% less the prime rate (effective interest rate of 2.75%).

Maximum loan amount

In response to the plan enhancement measures that took effect in May 2020, the maximum loan amount for each “100% Personal Loan Guarantee Scheme ” application of each enterprise will be increased from the maximum loan amount of 5 million to the maximum of 6 million; or the sum of the salary and rent of the employees of the enterprise, multiply Take 18 months (12 months before optimization), whichever is lower.

Maximum repayment period

The maximum repayment period of the “100% Personal Loan Guarantee Scheme ” has been optimized from 5 years to 8 years, and the “interest-free principal” arrangement can be applied for in the first 18 months (12 months before the optimization).

Eligibility requirement

The application qualifications are not limited to enterprises and industries. Eligible enterprises must meet the following conditions:

• A local enterprise registered in accordance with the Business Registration Ordinance with actual business operations in Hong Kong;

• The business must have been operating for at least 3 months by the end of 2019;

• The company’s turnover in any month since February 2020 has fallen by 30% or more compared to the average monthly turnover in any quarter of the previous year

• Good repayment history

Date of Application

The application period for the “100% Personal Loan Guarantee Scheme ” is from April 20, 2020 (Monday) to December 31, 2021.

Application Procedures

If SMEs want to apply for the “100% Personal Loan Guarantee Scheme” or understand the relevant terms of the major cooperative banks, they can refer to the “List of Lending Institutions Participating in the Program” and fill in the application form in person or online at the above banks, and the relevant institutions will handle it. Application and approval.

The above information is for reference only. If you have any questions about the SME Financing Guarantee Scheme/100% Personal Loan Guarantee Scheme, we welcome your inquiries.

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