Skip to Primary Content
Alternative BannerMain Banner

The Hong Kong Mortgage Corporation Limited

100% Personal Loan Guarantee Scheme

A Financing Option to Help Tide Over Interim Difficulty


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 100% Personal Loan Guarantee Scheme (“PLGS”), administered by the HKMC Insurance Limited (“HKMCI”). 




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


Under the PLGS, the Government will provide 100% guarantee for concessionary low-interest loans taken out by eligible borrowers.




Eligible borrowers must:


  • be Hong Kong permanent residents aged 18 years old or above;
  • have been unemployed for at least 2 months at the time of loan application;
  • neither be undischarged bankrupts, nor be subject to any bankruptcy petition or proceedings at the time of loan application and shall maintain valid bank accounts in Hong Kong; and
  • be able to produce proof of cessation of main recurrent incomes from employment in Hong Kong.


Self-employed individuals (only for those who currently do not have any loans or credit facilities guaranteed under the SME Financing Guarantee Scheme), free-lancers, gig or casual workers are also eligible upon the production of a declaration of unemployment and proof of a loss of main recurrent incomes from employment / occupation in Hong Kong.



Key Features of PLGS

Maximum Eligible Loan Amount Per Borrower 

The lower of:


  • 6 times the average monthly income for any 3 months from January 2020 to February 2021; or 6 times the average monthly assessable income as calculated with reference to the tax demand note for the year of assessment 2019/2020; and
  • HK$80,000.

Minimum loan amount per Borrower is HK$5,000.

Loan TypeTerm loans only
Loan Interest Rate and Interest RebateThe 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 scheduled repayment period, which is 6 years at maximum, despite any interim delinquencies.
Relevant Fees and ChargesNo handling fees, set up fees or prepayment penalty will be charged.

In case of overdue repayment, overdue interest and/or charge may be levied. Also, in case of failure to repay (e.g. due to returned cheque or rejected autopay), charges may be incurred. Details of overdue interest and/or charge and charges on failure to repay will be specified by the participating lender (“Lender”).
Use of Loan Proceeds by BorrowerThere is no restriction on the use of loan proceeds.
Repayment PeriodMaximum repayment period is 6 years.

Borrowers may apply for principal moratorium for the first 12 months from the drawdown of the loans.

If a Borrower does not fulfil the repayment obligations, it may adversely affect the Borrower’s credit records maintained at the credit reference agencies.  The Lender will also follow up in accordance with its usual processes.

 For details, please refer to the PLGS Fact Sheet.



Application Period and Procedures

The application period will last for six months, from 28 April 2021 to 27 October 2021. The Government announced on 21 September 2021 that the application period of the PLGS is extended to end-April 2022.

Loan applicants should contact the Lenders to apply for loans under the PLGS. The Lenders will review the applications before submitting to the HKMCI for review and approval.


For general enquiries about the PLGS, please contact:

1. the Lenders; or
2. the HKMCI


PLGS Hotline: 2536 0392

PLGS Enquiry:


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: 5 October 2021