We compare 30+ personal loans from major banks

Personal Instalment loans are unsecured loans that are given without any form of collateral or security to be pledged against the amount borrowed. With instalment loans, you are bound to a fixed instalment schedule and are required to make regular fixed payments over an agreed loan tenure to settle your loan amount. Many banks and lending companies in Hong Kong such as HSBC, Bank of China (Hong Kong) , Bank of East Asia, Citibank and Standard Chartered Bank offer various kinds of personal loan products such as personal instalment loans, debt consolidation and credit line.

MoneyHero.com.hk's comparison portal enables you to compare interest rates, handling fees, annualized percentage rate (APR), total repayment amount and special offers of different products, helping you to find the personal loans that best suit your needs. Simply click Apply and you can get the personal loan you need easily without having to line up in the bank.

The requirements vary from lender to lender. In general, applicants must be a Hong Kong permanent resident aged 18 or above and should submit all required documents such as proof of identity, proof of income, and proof of residence.

Generally speaking, banks and financial institutions require documents including Hong Kong Identity Card, income proof (e.g. bank account statement or passbook showing the latest month payroll record) and current residential address proof (e.g. water and electricity bills, bank statement), etc. If you are self-employed, you might need to submit supporting documents like present business registration certificate, business account record and tax bill. Today you may even get a personal loan without income proof or showing up in any branches, you will just need to apply online or by phone, without the need to submit any supporting documents like the HKID Card.

You should evaluate your financial situation, your actual needs and your ability to repay before applying for a personal loan to avoid overborrowing. Many financial institutions advertise their loans with wordings like 'lowest interest', '0 interest' and 'interest waiver throughout the tenor', but keep in mind that you may need to pay interest plus other fees including handling and service fees. So when you compare different personal loans, you should look at their Annual Percentage Rates. Annual Percentage Rate (APR) refers to the annual costs of a loan including the cost of interest and additional fees, which helps you understand the total cost of a loan.

What is more, you should also read the full terms and conditions of a loan to avoid extra charges, like whether early repayment fees apply if you pay off your loan early. Last but not least, be sure to repay your loan timely, as you could be charged late payment penalties and extra interest; and the late payment will also show up on your credit report, hurting your credit score and affecting your chance of getting a loan, some financial institutions might even charge you a higher interest rate.

Loan approval is generally influenced by the borrower?s income and occupation, financial situation and repayment ability, credit history, relationship with the bank and others.

Monitored by the Hong Kong Monetary Authority, banks usually have higher requirements; while lending companies are governed by the Money Lenders Ordinance and they tend to approve loans easier.

Many banks have been advertising their loans with 'minimum interest rates'. In fact, terms vary among financial institutions and some of them set requirements like minimum loan amounts, minimum income and opening a salary account in the bank, you may have to meet these requirements to qualify for minimum interest rates.

If you make late loan repayments, you will probably need to pay late payment charges and additional overdue interest, and the late payment records will also impact your credit scores, affecting your interest rates for the loans and loan amount, or even leading to loan rejection. Borrowers should repay the loan on time to avoid additional spending. You should contact your bank or financial institution to discuss other repayment arrangements if you have difficulty in the loan repayment.

In addition to late penalties, many banks also charge early settlement fees, or you may even have to pay extra penalty interest and return cash rebates. As a result, if you want to pay off loans early, you should contact your bank and check the amount of principal you have repaid to avoid financial loss.

While it is very important to get quick loan easily and privacy matters to borrowers, online application is getting more and more popular. Applicants may get cash on the same day once they have uploaded all supporting documents, and this application method saves time and hassle. Moreover, some banks and financial institutions also offer special deals and privileges to those who apply loans online. Just remember that you should understand how the loan works and read the terms and conditions carefully in order to protect yourself.