The Hong Kong Mortgage Corporation Limited
Dedicated 100% Loan Guarantee Schemes
Background and Objective
The Financial Secretary announced in the 2023-24 Budget the introduction of the DLGS for the travel sector and the cross-boundary passenger transport trade to support resumption of their business and services, as well as for the taxi trade to provide an incentive for taxi owners to replace their liquefied petroleum gas, petrol or hybrid taxis with battery electric taxis (e-Taxis).
The DLGS for Travel Sector aims to assist licensed travel agents and local tour coach registered owners in resolving short-term funding difficulties, hiring staff as soon as practicable and accelerating operational capability enhancement, so as to complement the pace of resumption of inbound and outbound tourism activities.
The objective of the DLGS for Cross-boundary Passenger Transport Trade is to allow eligible registered vehicle owners or ferry operators/owners of cross-boundary passenger transport to apply for loans for the purpose of vehicle or ferry repair and maintenance, buying insurance, etc. with a view to resuming services as soon as possible.
Promoting the use of e-Taxis is one of the Government’s measures to develop green transport, which helps achieve the carbon neutrality target of Hong Kong. The DLGS for e-Taxis provides loans for eligible taxi owners to purchase e-Taxis to replace their liquefied petroleum gas, petrol or hybrid taxis. Eligible taxi owners wishing to apply for loans under the DLGS may approach the relevant participating lenders.
Key Features of DLGS
For e-Taxi – 5 years from 4 September 2023
For other specified sectors – from 29 April 2023 to 28 April 2024
Term loans only
|Maximum Repayment Period
|Loan Interest Rate
The annual interest rate will be based on the prime lending rate for Hong Kong Dollars as announced from time to time either by The Hong Kong Mortgage Corporation Limited (Hong Kong Prime Rate) or by the relevant Lender (Lender's Prime Rate), depending on the Lender’s practice.
The annual interest rate at loan drawdown will be an interest rate of or equivalent to Hong Kong Prime Rate minus 2.5% per annum. After loan drawdown, the annual interest rate will be adjusted in accordance with any changes to the applicable Hong Kong Prime Rate or Lender's Prime Rate.
Please refer to the DLGS Product Factsheet for details.
Loan applicants should contact the Lenders to apply for the Loan. The Lenders will use their professional expertise, judgement and care in conducting customer due diligence, reviewing each application, and verifying the eligibility of each loan applicant before submitting the applications and relevant supporting documents to the HKMCI for review and approval.
The DLGS are operated by the HKMCI and are subject to the relevant terms and conditions. The copyright to the contents of this document is owned by the HKMCI.
Last Update Date: 29 December 2023