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The Hong Kong Mortgage Corporation Limited

100% Personal Loan Guarantee Scheme

A Financing Option to Help Tide Over Interim Difficulty

Important Note to Loan Applicants under the 100% Personal Loan Guarantee Scheme (“PLGS”):
 
HKMC Insurance Limited ("HKMCI") wishes to alert the members of the public to beware of anyone offering to make loan applications or obtain approval for a loan under the PLGS for a fee.  
 
Loan applicants are reminded that:
 
1. they need not engage or appoint any third party (except the participating lenders under the PLGS (“Lenders”)) to apply for a loan under the PLGS. Any loan application prepared by or submitted through a third party may incur unnecessary financial costs or loss to the applicant and expose the applicant’s personal data to the risk of disclosure to or misuse by an unscrupulous third party;
 
2. they should apply for a loan under the PLGS directly through the Lenders which will provide assistance without levying any application fee or handling fee; and
 
3. the Lenders and HKMCI will not tolerate any illegal conduct (e.g. making a false declaration or using a false instrument) and will report suspected illegal conduct to the relevant law enforcement agencies.   

 

Background

Hong Kong’s economy has been facing significant downward pressure since the outbreak of Coronavirus Disease 2019 (“COVID-19”) in early 2020.

 

The labour market deteriorated markedly following the fourth wave of local outbreak. Unemployment surged across almost all the major economic sectors. 

 

Against this backdrop, the Financial Secretary announced in the 2021-2022 Budget the time-limited PLGS and subsequently announced enhancements measures on the PLGS in view of further impact brought by a new wave of the epidemic.

 

The PLGS is operated by the HKMCI. 

 

 

Objective

PLGS for Unemployed Individuals

 

The PLGS for Unemployed Individuals aims at providing a source of financing to individuals who are suffering from loss of main recurrent incomes from employment in Hong Kong during the COVID-19 pandemic.

 

The Government provides 100% guarantee for concessionary low-interest loans taken out by eligible borrowers.

 

PLGS for Affected Landlords

 

The Temporary Protection Measures for Business Tenants (COVID-19 Pandemic) Ordinance (“Ordinance”) came into effect on 1 May 2022 to provide temporary protection for business tenants in specified premises whose businesses are hard hit by the fifth wave of the COVID-19 pandemic. The Ordinance imposes a moratorium to prohibit landlords from taking certain actions in respect of their business tenants of specified sectors for failing to settle rent on schedule for a specified short period. In this connection, the Government has announced earlier the provision of interest-free loans under the PLGS to affected individual landlords who live off rental income from specified business premises they hold.

 

 

Eligibility

PLGS for Unemployed Individuals

 

An eligible borrower must:

 

  • be a Hong Kong permanent resident holding a valid Hong Kong identity card who is aged 18 or above;
  • have been unemployed and have suffered from loss of main recurrent incomes from employment or business in Hong Kong at the time of loan application:

    a. for an individual under employment – have been unemployed for at least 2 consecutive months; or

    b. for a self-employed individual who carried on any business in Hong Kong (only for those who currently do not have any loan or credit facilities guaranteed under the SME Financing Guarantee Scheme (“SFGS”)(#)) – have the individual’s business ceased for at least 2 consecutive months; or

    c. for free-lancers, gig or casual workers – have been unemployed or ceased business (as the case may be) in Hong Kong for at least 2 consecutive months;

 

  • be neither undischarged bankrupts, nor subject to any bankruptcy petition or proceedings at the time of loan application(^) and shall maintain valid bank account(s) in Hong Kong; and
  • (in relation to application of an existing borrower for top-up loan) – be unemployed at the time of top-up loan application and not be having any outstanding default of more than 60 days for any existing loan(s) of the borrower under the PLGS at the time of application for top-up loan and loan drawdown.

 

(#)  An individual who is currently carrying on any business (whether by sole-proprietorship, partnership or privately owned limited company) in Hong Kong may apply for financing guaranteed under the HKMCI’s SME Financing Guarantee Scheme.

 

(^) The Lenders shall check with credit reference agency(ies), other service provider(s) or relevant authorities before loan drawdown to confirm the borrower’s fulfilment of this criterion.

 

 

PLGS for Affected Landlords

 

An eligible borrower must:

 

  • be a Hong Kong resident holding a valid Hong Kong identity card who is aged 18 or above;
  • be a legal and beneficial owner of any premises which are used wholly or primarily as specified premises as defined in Part 2 of the Schedule to the Ordinance (“Premises”);
  • be a landlord living off rental incomes of the Premises who:

(a) has not received 20% or more of the rent of the Premises paid by the tenant for at least 1 month during the period beginning on 1 January 2022 and ending on the earlier of (1) 31 July 2022; and (2) the date of the loan application;

 

(b) was or has been barred from taking or continuing to take relevant action in respect of the tenant’s failure to pay the rent of the Premises in compliance with the tenancy agreement for the Premises pursuant to provisions under the Ordinance; and

 

(c) has not entered into any written forbearance agreement during the period beginning on 1 May 2022 and ending on the earlier of (1) 31 July 2022 and (2) the date of the loan application, in respect of the amount that is to be paid as rent or the time when any rent is payable in relation to the Premises;

 

  • be neither undischarged bankrupt, nor subject to any bankruptcy petition or proceedings at the time of loan application(^) and shall maintain valid bank account(s) in Hong Kong;
  • (In relation to new loan application of an existing borrower) - not be having any outstanding default of more than 60 days for any existing loan(s) of the borrower under the PLGS at the time of loan application and loan drawdown; and 
  •  not be a borrower of or personal guarantor for any loan or credit facilities guaranteed under the SFGS.

 

Note:  Documents are required to substantiate a borrower’s eligibility of PLGS for Unemployed Individuals and PLGS for Affected Landlords.  

 

 

Key Features of 100% Personal Loan Guarantee Scheme

Category

PLGS for Unemployed Individuals

PLGS for Affected Landlords
Application Period

From 19 April 2022 to 30 April 2023

From 6 May 2022 to 31 October 2022
Loan Type

 Terms loans only

 Maximum Repayment Period

 10 years

5 years
Loan Limit

 

HK$100,000 per borrower

 

All loans of all categories under the PLGS inclusive. Any amount of loans repaid or prepaid cannot be reborrowed.

 

Maximum Aggregate Loan Amount

The lower of:

  • the Loan Limit minus the aggregate original amount of loan(s) approved for or drawn by the borrower under all categories (“Available Loan Amount”); and
  • 9 times the average monthly income for any 3 months during the period between January 2020 and February 2022 or 9 times the average monthly assessable income as calculated with reference to the tax demand note for any of the financial years 2019-2020 or 2020-2021 or 2021-2022.

The lower of: 

  • the Available Loan Amount; and
  • 3 times the aggregate monthly rent receivable by the borrower in respect of the Premises from tenants protected by the Ordinance.

 

Loan Interest Rate and Interest Rebate

The annualised percentage rate is 1%.


Borrowers will receive full rebate of the interest payments made after the loan and interests are fully repaid by end of the repayment period, despite any interim delinquencies.

Effectual no interest

 

Details will be specified by the Lender. 

 

 Please refer to the PLGS Fact Sheet for details.

 

 

Application Procedures

 

Loan applicants (including the existing borrowers submitting top-up applications) should contact the Lenders to apply for the loan or credit facility. 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.

Enquiry

For general enquiries about the PLGS, please contact:

1. the Lenders; or
2. the HKMCI

  

PLGS Hotline: 2536 0392

PLGS Enquiry: plgs_enquiry@hkmci.hk

Remarks

This PLGS is operated by the HKMCI and is subject to the relevant terms and conditions. The copyright to the contents of this document is owned by the HKMCI.

 

 

Last Update Date: 8 June 2022