Hong Kong personal loan scheme for unemployed extended until next year to tackle joblessness during coronavirus pandemic
- Financial Secretary Paul Chan says personal loan guarantee scheme ‘helped a lot of people’ last year
- Society for Community Organisation says poorest residents working casual jobs unable to qualify for loan scheme
A personal loan guarantee scheme for Hong Kong residents who lose their jobs amid the Covid-19 pandemic would be extended until April next year, the finance chief said in his budget speech on Wednesday.
An additional HK$6.6 billion (US$845.9 million) would also be dedicated to creating 30,000 temporary jobs to tackle the health crisis and ease unemployment, Financial Secretary Paul Chan Mo-po added.
“The 100% Personal Loan Guarantee Scheme rolled out last year has helped a lot of people. I will extend the scheme for one year until the end of April next year,” he said.
The scheme aims to help unemployed individuals in need of a loan during the ongoing coronavirus pandemic.
The maximum loan amount per applicant will be increased from the current six times an individual’s monthly income during employment to nine times, with the cap raised from HK$80,000 to HK$100,000.
The maximum repayment period will be extended from six years to 10, while the maximum duration of principal moratorium – or the period where the borrower is not required to make any repayment – will be extended from 12 months to 18.