ZA Bank to support HK goverment's 100% personal loan guarantee scheme

With many Hongkongers still facing financial difficulties as a result of the pandemic, the HKSAR government recently announced the 100% Personal Loan Guarantee Scheme (PLGS), offering a supplementary financing option for those who have suffered a loss of income. Through the scheme, the government will provide a 100% guarantee for low-interest loans taken out by eligible borrowers.

Hong Kong virtual bank ZA Bank has announced it will support the scheme, becoming the only local virtual bank to do so. In accordance with the PLGS, ZA Bank will offer loans to eligible borrowers of up to HK$80,000, with a maximum tenor of six years and a fixed interest rate of 1% per annum. 

Applicants can opt for principal repayment holidays for the first year, and will only be required to repay principal and interest in installments over the following five-year repayment period. Once the loan and interest are fully settled, their interest payments will be fully rebated. To encourage sign-ups and offer a little extra to those in need, ZA Bank has also offered an incentive of HK$400 for applicants who open an account during the loan application process.  

Hongkongers can submit their applications to the scheme using the ZA Bank App starting in early May.

"ZA Bank is committed to fulfilling our social responsibilities. Following our participation in the Government’s Cash Payout Scheme last year, we once again become the only virtual bank to support the PLGS and give unemployed individuals access to loan relief with technology. We believe that ZA Bank’s fully digital service model can help disburse the loans swiftly to those in need under the Scheme, allowing them to complete the applications without leaving the house amid the pandemic," said Devon Sin, co-head of retail banking at ZA Bank.

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