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%! Valid until 31 Oct 2023 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 To borrow or not to borrow? Borrow only if you can repay See all loan details  Monthly Payment HK$4,787 Monthly Payment up to HK$3,000 cash rebate Hang Seng Personal Instalment Loan APR* 7.2% Total Amount Payable HK$229,760 Total Interest Payable HK$29,760 Monthly Payment HK$4,787 Read More More Details Key Features Apply for Handy Cash Personal Instalment Loan to enjoy privileged offers on or before 24 February 2023: Annualised Percentage Rate as low as 1.85%* and 0% handling fee Up to HKD3,000 Cash Rebate for online or mobile application Payroll customers do not need to submit document Loan amount of up to HKD3,000,000 or 24 times your monthly salary (whichever is lower), and repayment periods up to 60 months Further apply for a top-up on your repaid amount with no documents required The above information is for reference only. For details, please visit Hang Seng Bank Limited website. * For a loan amount of HKD1,500,000 or above, the Annualised Percentage Rate of 1.85% is calculated based on a monthly flat rate of 0.08% and a 24-month repayment period, including 0% handling fee. The Annualised Percentage Rates are reference rate which include the basic interest rate and other fees and charges of a product expressed as an annualised rate (if applicable) Terms and Conditions apply To borrow or not to borrow? Borrow only if you can repay! See all loan details  Monthly Payment HK$4,907 Monthly Payment Bank Promo HSBC Personal Instalment Loan APR 2.47%* Total Amount Payable generated by 2.47% and 0.11% flat rate HK$235,520 Total Interest Payable generated by 2.47% and 0.11% flat rate HK$35,520 Monthly Payment generated by 2.47% and 0.11% flat rate HK$4,907 Bank Promo: Customers who apply for a specified loan amount through MoneySmart and successfully apply during the promotion period are subject to this promotion and the relevant terms and conditions, receiving as low as 2.47% APR and up to HK$5,300 cash rebate! (Fulfilled by HSBC) Valid until 08 Oct 2023 Apply Now More Details Key Features Annualised Percentage Rate as low as 2.47% * Up to HKD$5,300 Cash Rebate $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 *Only applicable to customers who have successfully applied for and drawn down the loan during the promotional period with an approved loan amount of HK$1,500,000 or above. Based on a monthly flat rate of 0.11%, the Annualised Percentage Rate (APR) is 2.47%. The APR is calculated using method specified in relevant guidelines issued by The Hong Kong Association of Banks, and is rounded up or down to the nearest two decimal places. An APR is a reference rate, which includes all applicable interest rates, fees and charges of the product, expressed as an annualised rate. 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/