How to Borrow Money Legally in Hong Kong?

How to Borrow Money Legally in Hong Kong?

Understanding Money Lending

1. Personal Loans: These are unsecured loans that can be used for various purposes.

2. Payday Loans: Short-term loans intended to cover expenses until your next paycheck.

3. Microloans: Small loans often provided by NGOs or community organizations.

4. Pawnshop Loans: Loans secured by personal items of value.

Legal Framework

• Money lenders in Hong Kong must be licensed.

• Lenders are required to provide clear terms and conditions.

• Interest rates are capped by law to prevent usury.
• Licensed money lenders can charge up to 48% annual interest, with even higher rates (up to 60%) in some cases.

Choosing a Lender

1. Licensed Money Lenders: Ensure the lender is licensed by checking the register maintained by the Companies Registry.
• This list does not recommend any particular lender, but it allows you to verify if a lender is legitimate.
• List of Licensed Money Lenders

2. Interest Rates and Fees: Compare rates and understand all fees involved.

3. Terms and Conditions: Read and understand the repayment terms, including any penalties for late payments.

4. Reputation: Seek feedback from fellow domestic workers and online reviews.

Required Documents

• Hong Kong Identity Card (HKID)

• Employment Contract

• Proof of Income: This could be your latest salary slips or bank statements showing your salary deposits.

• Proof of Address: This could be a utility bill (water, electricity) or a bank statement showing your address.

• Contact Information: Your phone number and home address in your home country (for reference).

Important Reminder

• Borrow Only What You Need: Only borrow what you absolutely need and can afford to repay.

• Understand the Terms: Make sure you understand the interest rate, fees, and repayment schedule before signing any loan agreement.

• Don't Be Pressured: Don't feel pressured to take out a loan you don't need or understand.

Important Contacts