The 100% Personal Loan Guarantee Scheme (PLGS) introduced in the 2021-22 Budget, will start receiving applications from 28 April, 2021 for six months.
The PLGS offers a source of financing to unemployed individuals who are suffering hardship due to the COVID-19 pandemic by providing low-interest loans.
The initial participating banks are Bank of China (Hong Kong) Limited, The Bank of East Asia, Limited, China CITIC Bank International Limited, China Construction Bank (Asia) Corporation Limited, Dah Sing Bank, Limited, Hang Seng Bank, Limited, The Hongkong and Shanghai Banking Corporation Limited, Industrial and Commercial Bank of China (Asia) Limited, Shanghai Commercial Bank Limited, and Standard Chartered Bank (Hong Kong) Limited. Chiyu Banking Corporation Limited and ZA Bank Limited will start receiving applications in May.
Eligibility
Applicants have to be Hong Kong permanent residents aged 18 or above, who have been unemployed for at least two months at the time of loan application, and who can demonstrate cessation of main recurrent incomes from employment in Hong Kong.
Loan applicants need to provide proof of their previous employment and main recurrent incomes for at least three months during the period from January 2020 to February 2021 (“specified period”).
The maximum amount of the loan per applicant is six times the average monthly income within the specified period (Note 1), or HK$80,000, whichever is the lower.
The maximum repayment period is six years, with an option of principal moratorium for the first 12 months to alleviate the immediate repayment burden.
The effective interest rate is fixed at 1 per cent per annum. A borrower will receive a full refund of the interest paid after the loan is fully repaid at or by the end of the repayment period.
More information: PLGS Hotline at 2536 0392 or www.hkmc.com.hk/eng/our_business/plgs.html