Personal Loans in Hong Kong
Do you need new fancy electronics or a new car? Have you dreamt of travelling the world on a long summer holiday? Are you thinking of consolidating your existing debts into one loan? Do you want a plan whereby you will pay periodic installments on your loan? Well, there is a way you can do this. With a personal loan, you can buy goods or services or meet any other form of expenses immediately. Here is a guide to personal loans to help you begin living a little.
What is a personal loan?
A personal loan can be defined as the money you borrow from lending institutions such as banks, credit unions or online lenders for your own desired purposes. You will be required to pay the total amount, including an interest, in partial monthly installments, over time. Some personal loans are secured, meaning they have collateral attached to them, but most personal loans are unsecured, meaning they have no collateral backing.
Benefits of personal loans.
You can use a personal loan for just about anything. The typical circumstances that compel people to take personal loans include: debt consolidation, refinancing existing loans, financing a major one-off purchase, covering unexpected significant expenses such as medical emergencies, financing substantial events such as a wedding, making tax payments, and also starting or expanding a business.
The advantages of personal loans are flexibility – you can use a personal loan for any purpose as you may wish, lower interest rates as compared to credit cards, predictable payment schedules, fixed monthly payments, speedy approvals, easy availability – because a variety of lenders offer them, and they are convenient, since you won’t need to have an excellent credit rating to obtain a personal loan.
Rules and regulations for personal loans.
Here are some of the things you need to keep in mind while sourcing for a loan:
Pick the lender carefully: most banks and other loan lenders keep sending enticing messages and emails to lure people into taking low-rate loans. Take caution so as not to fall for the first offer that you get, because this way, you could easily miss out on better offers from other lenders if you do not research thoroughly.
Calculate the interest rate: most lending institutions use the flat rate of interest to lure customers. This is a misleading metric because it does not capture balance reduction upon every equated monthly installment (EMI) that you pay.
Keep off 0% EMI schemes.
The 0% EMI scheme is a tactic used by lenders in collaboration with product distributors, whereby they offer interest-free loans to product buyers, but secretly charge exorbitant loan processing fees and file charges.
Do not approach too many lenders.
Shopping around for the best interest rates could hurt your credit rating because whenever you approach a lender, they will take a look at your credit score and approaching many lenders could portray you as a credit hungry borrower.
Do not opt for advance EMIs.
You need to avoid being lured to paying advance EMIs because if you take this path, then, in the long run, you will end up paying a higher repayment amount which translates to an interest rate higher than the agreed.
Check the other charges.
It would be best if you were careful before signing for the loan as some unscrupulous lenders slip in other hidden additional charges.
Which companies in Hong Kong offer the best personal loans?
The top lending companies in Hong Kong that offer the best personal loans include: AEON, Promise, PrimeCredit, UA and WeLend.
What makes them different?
The key differentiators between the various lending companies in Hong Kong are monthly interest rates, repayment amounts, and the Annual Percentage Rate (APR).
What are their biggest benefits?
The benefits of taking a personal loan from the above lenders include instant loan approvals: the approval process for the loans is very fast, reliability: for most companies, you can apply for your loan anywhere at any time without the need to show up physically or present documents, and also flexible repayment periods.
In summary, personal loans are useful under the right circumstances. In Hong Kong, there are many options for you to access a personal loan, but you need to keep that, no matter the circumstance, the loan must be paid back in the long run. Therefore, before taking a loan, ensure that you have the capacity to comply with the loan terms. Take a look at your budget and evaluate if it is realistic for you to make a loan payment every month. As well, be sure to research extensively and even consult a reliable financial institution, then weigh your options.