Best Education Loans in Hong Kong (2023 Apr)

Where to get an education loan to further your study? That’s the headache my friend Kim is having right now.

A 26-year-old friend of mine named Kim is a young, ambitious digital marketing executive earning $20,000 per month. She’s looking to further her career by enrolling in a marketing master’s program. However, the program costs over $100,000, and Kim is unsure how she can finance it.

Luckily, she got a friend like me (who likes to dig out the best deals). I got her research on education loans in Hong Kong, including those from the government and various banks and I am sharing this information to help you who may be in a similar situation.

Don’t forget, if you find this blog post helpful, consider bookmarking it for future reference. And now, let’s get down to business.

Where to get student loans in Hong Kong?

Ideally, you can get education loans in Hong Kong through 3 places: the Student Finance Office, the Hong Kong Mortgage Corporation, and banks. Here is a quick comparison of the 3 types of loans:

Student loans comparison in Hong Kong

Student Finance Office: Extended Non-means-tested Loan Scheme (ENLS)

When it comes to the lowest interest rate, The Extended Non-means-tested Loan Scheme (ENLS) offered by the Student Finance Office is the best option. Most local universities’ master’s and doctoral programs, and even some bachelor’s programs, are eligible for loan applications.

The repayment period starts from the completion of the course, with a maximum repayment period of 15 years. The current annual interest rate is 1.231%, and interest is calculated from the day the loan is disbursed, including during the academic period, until the loan is fully repaid.

The maximum amount of loan you may borrow is the total tuition fees payable in an academic year. Do note that the lifetime loan limit under the ENLS is $372,700, and once an applicant has exhausted the limit, you can’t apply for the loan again.

Although the interest rate is attractive, you should also consider that the loan amount does not exceed the tuition fee payable, plus the required application time.

The Student Finance Office usually starts counting the three-week waiting period from the day all the required application documents are collected, including the Hong Kong ID card copies of the applicant, guarantor, and witness, and the copy of the admission letter from the university.

Typically, you hear back on whether you have been approved within 3 weeks of your application submission. Once approved, the loan will be paid by instalments via cheques. And the first instalment is usually paid within 3 weeks upon the date of approval. If you have paid for your tuition fees, that part of the loan will be credited to your designated bank account instead.

Banks: Personal Loans

When it comes to ease of application, private loans from banks are undoubtedly the easiest. You can submit the application form online, and get approved as fast as the same day. Plus the loan amount is 12 to 20 times the applicant’s monthly salary. Other than paying for tuition, it can also help with your daily expenses.

As for which bank has the best interest rate, we uses the example of applying for a HK$200,000 loan and repaying it in 48 months, comparing BEA (Bank of East Asia), Standard Chartered Bank, DBS Bank, Hang Seng Bank, and HSBC.

Borrowing HKD 200,000 for 48 months, comparison of interest rates for 5 banks:

Monthly Payment HK$4,887 Monthly Payment APR as low as 2.04%* BEA Tax Season Loan APR* 8.35% Total Amount Payable HK$234,560 Total Interest Payable HK$34,560 Monthly Payment HK$4,887 Read More More Details Key Features Cash rebate of up to HK$5,000 for customers whose applications are approved. Cash rebate of up to HK$4,000 for customers who apply online and are approved: - Customers who apply for a Tax Season Loan online and are approved during the Promotional Period and draw down the loan with over a specified repayment tenor and a loan amount of HK$200,000 or above (the “Eligible Customer”) are entitled to the cash rebate. For repayment tenor of 36 - 60 months: 　・Loan Amount of HK$100,000 - HK$199,999: Can enjoy HK$500 cash rebate 　・Loan Amount of HK$200,000 - HK$299,999: Can enjoy HK$1,500 cash rebate 　・Loan Amount of HK$300,000 - HK$799,999: Can enjoy HK$2,000 cash rebate 　・Loan Amount of HK$800,000 - HK$999,999: Can enjoy HK$3,000 cash rebate 　・Loan Amount of HK$1,000,000 or above: Can enjoy HK$4,000 cash rebate Extra HK$1,000 cash rebate for new customers who apply and are approved: - New customers who apply and are approved for a Tax Season Loan during the Promotional Period and who draw down the loan with the repayment tenor of 12-60 months and a loan amount of HK$50,000 or above, and who do not have any current BEA consumer loans when they submit their application (the “Eligible Customer”), are entitled to the cash rebate as shown in the table below. - BEA reserves the final right to interpret the definition of “Eligible Customer”. The cash rebate will be directly credited to the repayment account of the Eligible Customer on or before 31st July, 2023 without prior notice. The status of the customer’s loan account must be valid and with no past due record/unsatisfactory credit history at the time when BEA credits the cash rebate. APR as low as 2.04%* 0% arrangement fee Repayment period of up to 60 months Loan amount of up to 12 times your basic monthly salary (maximum HK$3,000,000) To borrow or not to borrow? Borrow only if you can repay! See all loan details  Monthly Payment HK$4,607 Monthly Payment MoneySmart Exclusive Instant cash out single-handedly DBS Personal Instalment Loan APR as low as* 2.2% Total Amount Payable HK$221,120 Total Interest Payable HK$21,120 Monthly Payment HK$4,607 MoneySmart Exclusive: New customers who successfully apply and drawdown DBS Personal Instalment Loan via MoneySmart can get up to HK$8,000 rewards + Extra up to HK$10,000 PARKnSHOP Supermarket Voucher/ Apple Store Gift Card! Get up to a total HK$18,000 reward! APR is as low as 2.2%! 【Last Chance! Apply for a Loan at the Year of Loong! 🐲】Earn with Your Loan Application. From now until 30 April, apply for DBS Personal Instalment Loan via MoneySmart with the required documents submitted, you can earn the application bonus of HK$800 vouchers (given out as 8,000 SmartPoints) regardless of approval! But that's not all - SmartPoints can be freely exchanged for cash vouchers from 20+ brands or converted into HK$533 cash! Click here to learn more. Valid until 30 Apr 2024 Apply Now More Details Key Features Up to HK$18,000 reward for applying for personal instalment loan APR as low as 2.2% Monthly flat rate as low as 0.01% Loan amount up to 20x monthly salary or HK$2,000,000 (whichever is lower) No income proof required Anytime redraw your repaid principal Existing customer refer to the customer who has any principal credit cards (including co-branded cards) and/or personal loan products with DBS Bank on the date of application Rewards are subject to Terms and Conditions, please refer to DBS website for details Relevant fee applies if a customer early pays off the Loan. For details, please refer to the Personal Instalment Loan Terms and Conditions. To borrow or not to borrow? Borrow only if you can repay See all loan details  Monthly Payment HK$4,887 Monthly Payment HSBC Personal Instalment Loan APR 1.88%* Total Amount Payable HK$234,560 Total Interest Payable HK$34,560 Monthly Payment HK$4,887 Read More More Details Key Features Annualised Percentage Rate as low as 1.88%* Rewards of up to $13,888 $0 handling fee Repayment period up to 60 months Loan amount of up to HK$3,000,000 or 23 times of the monthly salary, whichever is lower 1-minute approval and no income proof is required if you have maintained an auto payroll account with HSBC for one month or above (Processing time may vary in some cases depending on the actual circumstances of individual applications.) Early redemption fee will be waived within 30 days of the draw down date Cash withdrawal from over 1,000 HSBC's ATMs and branches *This promotion is applicable to customers who successfully apply for and drawdown a loan within the promotional period from February 1, 2024, to March 5, 2024. Customers who are approved for a loan amount of HKD 1,500,000 or above, with a repayment period of 12 months, will enjoy a monthly flat rate of 0.11%. The actual annual interest rates are 1.88% (calculated based on the inclusion of HKD 2,700 cashback and HKD 2,000 "RewardCash" from the successful application offer) and 2.47% (calculated without any cashback or "RewardCash"). The actual annual interest rates are calculated based on the guidelines provided by the Hong Kong Association of Banks and rounded to two decimal places. The actual annual interest rate is a reference rate that demonstrates the annualized rate including all applicable rates, fees, and charges. Terms and Conditions apply. To borrow or not to borrow? Borrow only if you can repay! See all loan details    Looking for more personal finance tips? Let’s check out the MoneySmart blog! Homepage: www.moneysmart.hk/en/