HKMC Insurance today announced that the 100% Personal Loan Guarantee Scheme will start receiving applications from April 28 for six months.

Financial Secretary Paul Chan said the scheme, introduced in the 2021-22 Budget, aims to provide a supplementary financing option to people suffering from a loss of main recurrent incomes and to help them tide over the interim difficulty amid the COVID-19 pandemic.

Hong Kong permanent residents aged 18 or above, who have been unemployed for at least two months at the time of the loan application and can demonstrate a loss of main recurrent incomes from employment in Hong Kong may apply.

Applicants also need to provide proof of previous employment and main recurrent incomes for at least three months, during the period from January 2020 to February 2021.

The maximum loan amount per applicant is six times the average monthly income within the specified period, or $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 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.

Applications can be made through the participating banks in Hong Kong from April 28. The list of participating lenders and their enquiry hotlines are available on the scheme’s dedicated webpage.

Call 2536 0392 for enquiries.