Dedicated 100% Loan Guarantee Schemes for Specified Sectors

Dedicated 100% Loan Guarantee Schemes (DLGS) in Hong Kong are designed to support specified sectors with full government-backed loan guarantees. The key details are:

Objectives:

• Assist licensed travel agents and local tour coach owners in overcoming short-term funding difficulties, hiring staff, and enhancing operational capabilities to support tourism recovery.
• Support cross-boundary passenger transport trade (registered vehicle owners and ferry operators) in resuming services by financing vehicle/ferry repair, maintenance, and insurance.
• Promote green transport by incentivizing taxi owners to replace LPG, petrol, or hybrid taxis with battery electric taxis (e-Taxis), contributing to Hong Kong’s carbon neutrality goals.

Target Beneficiaries:

• Licensed travel agents and local tour coach registered owners.
• Registered vehicle owners and ferry operators in the cross-boundary passenger transport trade.
• Taxi owners eligible to purchase battery electric taxis.

Application Process:

• Applicants must apply directly through participating lenders listed by HKMC.
• Lenders conduct customer due diligence, verify eligibility, and submit applications to HKMC Insurance Limited for approval.
• No third-party application services are needed or recommended.
• Lenders provide assistance without charging application or handling fees.
• HKMC and lenders may request additional documents and verify information as needed.

Key Features:

• Application period for e-Taxis: 5 years from 4 September 2023; for other sectors, the period ended on 28 October 2024.
• Loan type: Term loans only.
• Maximum repayment period: 10 years.
• Interest rate: Based on Hong Kong Prime Rate minus 2.5% per annum at drawdown, adjustable with changes in prime rate.
• Loans support operational needs, vehicle purchase, repair, maintenance, and insurance.

The scheme is operated by HKMC Insurance Limited and aims to facilitate business resumption and green transport adoption in targeted sectors with full loan guarantees to lenders, reducing financing risks for borrowers. For application, contact participating lenders directly.

(Information accurate as of February 2025)