Personal Loan Guide 2025 - Application Process, Approval Time, Loan Channels
The personal loan market in Hong Kong is constantly changing in 2025. Low-interest loans have become a popular choice, and many banks have launched loan discounts. Personal loans are a common financing method in Hong Kong, providing people with flexible funding options. The process of applying for personal loans has been simplified, and many institutions now provide online application services, making the whole process more convenient.
What is a personal loan?
A personal loan is a flexible financing method suitable for people who have urgent financial needs. It has a simple application process and fast approval. In Hong Kong, the amount of a personal loan starts from HK$5,000 and can be up to HK$3,000,000 or 24 times the monthly salary, whichever is lower. Borrowers can choose the loan amount and repayment period according to their needs.
Who needs a personal loan in Hong Kong?
🚨Those who need short-term funds: to deal with emergency expenses (such as medical treatment) and large-scale consumption (such as decoration, education, travel)
🚨Those seeking debt consolidation: to merge high-interest debts (such as credit card bills) to reduce overall interest and monthly payments
🚨Self-employed persons or small and medium-sized business owners: can have more flexible financing options
Advantages of personal loans in Hong Kong
• Easy application: You can apply for P loan through the mobile app
• Fast approval: You can get approval quickly within a few working days
• Flexible use: It can be used for various personal consumption needs
• Long repayment period: Up to 84 months
Common Types of Personal Loans in Hong Kong
| Loan Type | Features |
|---|---|
| Installment Loan | Fixed repayment period, fixed monthly repayment amount |
| Revolving Loan | The repaid amount can be withdrawn at any time, high flexibility |
Where can I apply for a personal loan in Hong Kong?
1. Banks in mainland China
• Lenders: Bank of China (Hong Kong), Industrial and Commercial Bank of China (Asia), China Construction Bank (Asia)
• Features: Lower interest rates, simplified process for mainland residents.
• Best for: Stable income earners with ties to mainland China.
2. Local banks in Hong Kong
• Lenders: HSBC, Standard Chartered, Hang Seng Bank
• Features: Flexible products (personal loans, mortgages); may require non-residents to provide collateral.
• Best for: Non-ID card holders with assets or guarantors.
3. Non-bank financial institutions
• Lenders: PrimeCredit, WeLend, UA Finance
• Features: Fast approval (same-day financing), higher interest rates, loose credit checks.
• Best for: Bad credit but urgent needs.
4. Online credit platforms
• Platforms: MoneyHero, GoBear, CompareAsiaGroup
• Features: No collateral required, multiple loan comparisons, competitive interest rates.
• Best for: Tech-savvy borrowers seeking transparency.
5. Licensed Money Lenders
• Lenders: Hong Kong Financial Group, Oriental Finance
• Features: Small loans (HKD5,000 to HKD100,000), easy procedures, high APR.
• Best for: Short-term, small emergency situations.
How to apply for a personal loan in Hong Kong?
1. Check your credit report
Check your credit rating and record through TransUnion to understand your credit status and correct any incorrect information as soon as possible.
2. Compare lenders and plans
Different institutions offer different P loan plans, such as low-interest loans or TU-free products for people with low credit ratings. When comparing, you should choose a loan plan with low interest rates, simple procedures and suitable repayment periods.
3. Pre-qualification review
Many institutions provide soft pre-approval services, which show estimated interest rates and repayment amounts, and will not affect credit ratings when inquiring.
4. Formal application
Submit the application form with identity and income proof documents. At this time, banks and financial institutions will conduct hard credit checks, which may temporarily affect credit ratings.
5. Obtain funds
After approval, you can usually receive the money within a week, and the first repayment usually starts 30 days after the loan is issued.
Real case: Personal loans saved these Hong Kong people
🗣️Case 1: Debt restructuring (installment loan)
Background: Mr. Chen, 35 years old, with a monthly income of HK$25,000, accumulated a debt of HK$150,000 due to credit card overdraft, and the minimum monthly repayment resulted in interest rollover.
Solution: Apply for a low-interest installment loan (annual interest rate 6%) through the bank, repay it in 5 years, and the monthly repayment is about HK$2,900, saving nearly HK$40,000 in total interest compared to credit cards.
🗣️Case 2: Emergency medical expenses (revolving loan)
Background: Ms. Li needed HK$80,000 for surgery due to a sudden illness in her family, but her savings were insufficient and the insurance claim took time.
Solution: Use a bank revolving loan (limit HK$100,000, annual interest rate 8%), first withdraw HK$80,000 for emergency, and then restore the limit with repayment.
Rebuilding Your Credit File
Before you apply, consider the following steps to strengthen your financial situation:
• Pay off existing debts: Pay off past-due balances on loans or credit cards first.
• Reduce your debt-to-income ratio: Limit credit card use and avoid high-interest debt.
• Small loans to help you get back on your feet: Secured or low-value unsecured loans (paid on time) can gradually rebuild trust.
What to do if your application is rejected?
What to do if your application is rejected?
If your personal loan application is rejected, the first step is to understand the reason for the rejection. Financial lenders will usually explain the reasons for the rejection to you, giving you the opportunity to understand your financial or credit deficiencies.
After that, you can take action to improve it, such as paying off debts, correcting errors in your credit report, or building a longer credit record. Although the process may take several months to a year, it is worth it to prepare for the next application. If you have not improved your credit record, do not apply for personal loans repeatedly in a short period of time, which may make it more difficult to get a P loan approved in the future.
In addition, if you have financial needs, consider other Plan B, such as increasing additional income, raising funds in installments, etc.