Sources of credit
In Hong Kong, you can borrow money from licensed banks, deposit-taking companies and money lenders.
Banks offer a variety of consumer credit services, including credit cards, mortgages and personal loans.
Deposit-taking Companies (DTC) operate as subsidiaries of banks or associated companies. They specialise in the consumer finance and securities businesses and are authorised to accept deposits of HK$100,000 or more with maturity terms of at least three months.
Money lenders provide loans to people who might not qualify to borrow from a bank or DTC because of a lack of collateral, a poor credit score or other reasons. Money lenders may charge higher interest rates than banks and DTCs, make faster approvals and place less emphasis on the borrower's credit history.
Banks and DTCs are regulated by the Hong Kong Monetary Authority under the Banking Ordinance. The HKMA and the Financial Secretary are also members of the Banking Advisory Committee, which advises the government on issues relating to the banking and DTC businesses.
Money lenders must have a valid money lender's licence. Licensing of money lenders and regulation of money-lending transactions are governed by the Money Lenders Ordinance. Licensed money lenders must also be members of the Licensed Money Lenders Association of Hong Kong and comply with the association's Code of Practice.