Finding The Best Lending Company To Issue Loans In Hong Kong

In today's financial landscape, money lending companies have emerged as a convenient and accessible …
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Have some questions while choosing the best Lending Company Loans?

Why are the interest rates of lending companies always higher than banks?

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The interest rates offered by lending companies are generally higher than those offered by banks due to one main factor: risk assessment.

Lending companies typically have higher interest rates compared to banks owing to several factors. They primarily serve borrowers with lower credit scores or limited credit history, making them higher-risk candidates. To compensate for this elevated risk, lending companies charge higher interest rates as a precaution against potential losses. 

Can I borrow money from lending companies without income proof?

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Yes. If you cannot provide traditional income proof, you may explore alternative options or other lenders that cater to individuals with non-traditional income sources. These lenders may consider other factors, such as your assets, savings, or business revenue, as a basis for evaluating your repayment capacity.

Can companies lend money without proof of address?

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Yes. In some cases, lending companies may accept proof of address in alternative forms, such as utility bills in family member's name at the same address with the proof of relationship, or a letter from your employer confirming your address. Each lending company may have its specific requirements and policies regarding address proof, so it's advisable to contact them directly to inquire about their options.

Can I borrow money from lending companies without proof of identity?

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In most cases, no, but there may be some exceptions. It's advisable to contact lending companies directly to inquire about their specific requirements and whether they have alternative options available for those without their identity card as proof.

What are the consequences of late payment for lending companies?

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Same as borrowing money from a bank, the consequences of late payment for lending companies depend on the terms and conditions in the agreement. 

Lending companies typically impose late payment fees when borrowers fail to make their loan payments on time. These fees can vary in amount and may be a fixed fee or a percentage of the overdue payment.

If you consistently fail to make your loan payments on time, the lending company may initiate collection efforts to recover the overdue amount. This can involve contacting you via phone, email, or mail to request payment. In some cases, lending companies may engage debt collection agencies to recover the outstanding debt.

In extreme cases of non-payment, lending companies may pursue legal action to recover the unpaid amount. This can result in additional costs, such as legal fees, and may have long-term consequences on your credit history.

Does the law regulate lending companies and protect loan applicants?

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To protect loan applicants, the licensing of money lenders and regulation of money-lending transactions are governed by the Money Lenders Ordinance, Chapter 163 of the Laws of Hong Kong.It sets out licensing requirements for money lenders and establishes rules on interest rates, fees, advertising, and debt collection practices.

APR vs Monthly Flat Rate: Which should I pay attention to?

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Both APR and Monthly Flat Rate are common terms that will appear when looking for a loan. The APR represents the total cost of borrowing over a year, expressed as a percentage. It includes the nominal interest rate, as well as any additional fees or charges associated with the loan. The APR allows you to compare the cost of loans from different lenders on an annualised basis. It takes into account the interest rate, processing fees, administrative charges, and other costs, providing a more accurate representation of the true cost of the loan.

The Monthly Flat Rate, also known as the flat interest rate, is the interest charged on the loan amount every month. It is expressed as a percentage of the loan principal. The Monthly Flat Rate does not include additional fees or charges associated with the loan. It is a straightforward representation of the interest component of the loan repayment.

When comparing loan offers, you should consider the APR as it gives a more comprehensive view of the total cost of the loan. It considers both the interest rate and any additional fees or charges, providing a more accurate measure of the loan's overall cost. The APR allows you to compare loans with different interest rates and fees on an equal basis.

Lending Companies Loans Information

What are lending companies?

Lending companies, also known as money lenders, play a significant role in providing individuals in Hong Kong with access to much-needed funds. Lending companies serve as alternative sources of financing to traditional banks, offering a range of loan products with different features and terms. They typically have streamlined application processes, allowing you to apply for loans quickly and conveniently. This is particularly beneficial for individuals seeking prompt financial assistance.

What type of loan products do lending companies usually provide?

Lending companies in Hong Kong typically offer a variety of loan products to cater to the diverse financial needs of individuals. While the specific loan products may vary among different lending companies, here are some common types of loans:

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What are the tiers of lending companies and how do they differ from each other?

All legitimate lending companies hold the same type of money lender licence, their money-lending transactions are regulated by the Money Lenders Ordinance, Chapter 163 of the Laws of Hong Kong. There is no official classification into first-tier and second-tier lending companies, the “tiers” is just a colloquial term to identify different money lenders' company scale, application channels and approval requirements. 

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What is the difference between lending companies vs banks on loan applications?

When it comes to applying for loans, borrowers often have the option of approaching either lending companies or banks. While both serve as sources of financing, there are notable differences between the two. Understanding these distinctions can help borrowers choose the most suitable option for their specific needs and circumstances.

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What is the highest amount that lending companies in Hong Kong can provide?

The highest amount that lending companies in Hong Kong can provide as a loan depends on several factors, including the lending company's policies, the borrower's creditworthiness, and the purpose of the loan. For instance, higher creditworthiness generally means higher amounts, while lower credit scores can affect the eligibility of the loan.

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How to select a suitable lending company to borrow money from?

When choosing a financial institution, there are various elements to consider before determining which one is best for you. 

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What are the advantages of lending companies compared to bank loans?

While lending companies may charge higher interest rates and fees compared to banks, they also provide a range of advantages over traditional bank loans.

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Best Loans from Lending Companies

In today's dynamic financial landscape, money lending companies have become increasingly popular as a source of financial assistance. With a multitude of lenders in the market, each offering its own unique loan products, it can be challenging to determine which one is the best fit for your needs. From personal loans to business financing and debt consolidation options, money lending companies provide a wide array of choices to suit different requirements.

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Overview of Popular Loan Products on MoneyHero: Repayment Periods and Maximum Annual Percentage Rates (APR)

Loan product Repayment period Highest APR Example
Promise Easy Loan 3 Months - 84 Months 4.49% or above, the highest is 48% Loan amount of HK$200,000 with a 36-month repayment period, at an APR of 4.49%, the monthly repayment amount is HK$5,940, and a total repayment amount of HK$213,840
PrimeCredit Fixed Loan 3 Months - 72 Months 1.18% or above，the highest is 48% The monthly repayment amount is HK$839, the total interest expense is HK$68, and the total repayment amount is HK$10,068 for a Loan amount of HK$10,000 with an interest rate of 0.6% per annum and a repayment period of 12 months
WeLend Personal Loan 3 Months - 84 Months 1.88% or above, the highest is 48% Loan amount of of HK$240,000 with a 36-month repayment period, at an APR of 3.03%, the total repayment amount is HK$251,189
DBS Debt Consolidation Loan 3 Months - 84 Months 6.38% or above, the highest is 30.57%
Loan amount of HK$200,000 with a 48-month repayment period, at an APR of 10.42%, inclusive of a 2% loan opening fee, a monthly repayment amount of HK$4,967, and a total interest expense of HK$38,416
UA「NO SHOW」Personal Loan 3 Months - 60 Months 1.68% or above, the highest is 48.00% Loan amount of HK$10,000, at an APR of 30%, 6 months instalment, the monthly repayment amount is HK$1,815, total repayment of HK$10,890
Standard Chartered Personal Instalment Loan 12 Months - 60 Months 1.85% or above, the highest is 36% Loan amount of HK$200,000 with a 24-month repayment period, at an APR of 6.28%, the monthly repayment amount is HK$8,873.33 repayment per month and a total interest expense of HK$12,960
CNCBI $mart Plus Personal Instalment Loan 12 Months - 72 Months 1.65% or above, the highest is 38.08% Loan amount of HK$200,000 with a 24-month repayment period, at an APR of 5.03%, handling fee of 1% of loan amount per annum, handling fee of HK$4,000 for the whole term, flat rate per month: 0.129%, total interest for the whole period of HK$6,192
Citi Speedy Cash Personal Loan 6 Months - 60 Months 1.78% or above, the highest is 35.78% Loan amount of HK$3,500,000 with a 12-month repayment period, at an APR as low as 1.78%
PrimeCredit Civil Servant & Professional Loan 3 Months - 72 Months 1.18% or above, the highest is 48% Loan amount of HK$10,000 with a 12-month repayment period, at an interest rate of 0.6% per annum, the monthly repayment amount is HK$839, the total interest expense is HK$68, and the total repayment amount is HK$10,068
CNCBI $mart Plus Personal Installment Loan - Debt Consolidation 12 Months - 60 Months 7.33% or above, the highest is 38.08% Loan amount of HK$20,000 with a 60-month repayment period, at an APR of 6.89%, fixed monthly fee of 0.20%, inclusive of 1% handling fee per annum, monthly repayment amount is HK$373
BOC Express Cash Instalment Loan Balance Transfer 12 Months - 60 Months 5.93% or above, the highest is 32.51%。 Loan amount of HK$20,000 with a 24-month repayment period, at an APR of 10.01%, inclusive of 1% handling fee per annum, monthly repayment amount is HK$9,173
CCB (Asia) Personal Instalment Loan 6 Months - 60 Months 1.56% or above, the highest is 13.00% Loan amount of HK$400,000 with a repayment period of 60 months, with a monthly repayment amount of HK$7,747
WeLend Card Debt Consolidation Loan 3 Months - 84 Months 1.88% or above, the highest is 48% Loan amount of HK$360,000 with a repayment period of 60 months, at an APR of 8.05%, and the total repayment amount is HK$422,578
PrimeCredit Balance Transfer Loan 3 Months - 72 Months 1.18% or above, the highest is 48% Loan amount of HK$10,000 with a repayment period of 12 months, at an interest rate of 0.6% per annum, the monthly repayment amount is HK$839, the total interest expense is HK$68, and the total repayment amount is HK$10,068
AEON Flexi Loan 6 Months - 60 Months 4.49% or above, the highest is 36% Loan amount of HK$600,000 with a repayment period of 12 months, at an APR of 4.49%, total interest of HK$14,400 and total repayment of HK$614,400.
Hang Seng Debt Consolidation Instalment Loan 6 Months - 72 Months 6.68% or above, the highest is 36% Loan amount of HK$150,000 with a repayment period of 72 months, at an APR of 4.63%, and a total loan repayment amount of HK$171,604.80.
UA i-Money Express Online Personal Loan 3 Months - 60 Months 1.68% or above, the highest is 36% Loan amount of HK$10,000 with a repayment period of 6 months, at an APR of 30%, a monthly repayment amount of HK$1,815, and a total repayment amount of HK$10,890
Promise Easy Loan 3 Months - 84 Months 1.12% or above, the highest is 48% Loan amount of HK$200,000 with a repayment period of 36 months, at an APR of 4.49%, a monthly repayment amount is HK$5,940 and a total repayment amount of HK$213,840
CreFIT ClearCard Debt 3 Months - 24 Months 1.98% or above, the highest is 36% Loan amount of HK$200,000 with a repayment period of 24 months, at an APR of 8%, a monthly repayment amount is HK$9,019.33 and a total repayment amount of HK$16,464.00
OCBC Bank Personal Loan 6 Months - 60 Months 2.16% or above, the highest is 36% Loan amount of HK$1,500,000 with a repayment period of 12 months, at an APR of 2.16% (including HK$9,000 cash rebate) or 3.30% (excluding cash rebate), inclduing the annual 1% handing fee, total repayment amount is HK$16,464.00