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80% / 90% Loan

 

The 80% / 90% loan guarantee products are a loan guarantee program provided by the government for small and medium-sized enterprises (SMEs). They are part of the SME Financing Guarantee Scheme（SFGS）and are designed to help enterprises solve their funding shortage problems.

80% Guarantee Product（SFGS 80）

Guarantee Ratio: 80%
Application Period: From May 31, 2012 to the end of March 2028
Guarantee Fee Annual Rate: up to 0.45% of the loan amount per year (if applicable), payable in a lump sum or annually. Early payment can be included in the loan amount.
Loan Limit: HK$18 million (including 80% and 90% Guarantee Loans)
Maximum Guarantee Period: 8 years
Loan Purposes: Acquisition of business assets, replenishment of working capital, or refinancing under certain conditions, etc.
Prohibited Uses: The funds may not be used to repay or restructure existing corporate loans unless refinancing conditions are met.
Repayment Method: Installment repayment. For the first 6 months, you can pay only the interest, and then repay the principal and interest. The guarantee period will not be extended.

90% Guarantee Product（SFGS 90）

Guarantee Ratio： 90%
Application Period: December 16, 2019 – End of March 2026
Guarantee Fee Annual Rate: 0.36%-0.45% per annum (depending on the company’s operating years), payable in a lump sum or annually. Early payments can be included in the loan amount.
Loan Limit: HKD 8 million (including 80% and 90% Guarantee Loans)
Maximum Guarantee Period: 8 years
Loan Purposes: Acquisition of operating assets, replenishment of funds, refinancing, etc.
Prohibited Uses: The funds may not be used to repay or restructure existing corporate loans unless refinancing conditions are met.
Repayment Method: Installment repayment. For the first 12 months, you can pay only the interest, and then repay the principal and interest. The guarantee period will not be extended.

80% / 90% Loan Application Qualifications

The company must be legally registered (including limited liability companies, sole proprietorships, partnerships, or unincorporated entities) and actually conduct business

It is prohibited to engage in lending business or provide funds for loan purposes

It is not permissible for a company to be a related party of a lending institution

The company may not be listed on the Hong Kong Stock Exchange or other exchanges

Applicant companies must have been operating in Hong Kong for at least one year and have no outstanding arrears as defined by this scheme

80% / 90% Loan
Application Documents

Application Form and Related Forms
A Copy of the Latest Business Registration Certificate (If Updated, the New Certificate is Required)
Copy of Company Registration Information (Applicable to Unlisted Limited Companies)
Copies of Identification Documents of Directors, Shareholders, Sole Proprietors, or Partners (also Applicable to Shareholders of Non-listed Companies)
Copy of the Guarantor’s Identity Document
Company Registration Certificate Copy
Business Registration Office Form 1(a) / 1(c) or a Copy of the Business Register Search Form
If There are Overseas Company Shareholders, Documents such as Proof of Director Authority or Shareholder Register must be Submitted
A Copy of the Completed Loan offer Signed by the Bank
Other Supplementary Information Required by Hong Kong Mortgage Corporation Limited

80% / 90% Loan

Q & A

1. How long is the application period for an 80% / 90% loan?

The application period for 80% loan started on May 31, 2012, and will last until the end of March 2028; while the application period for 90%  loan will start on December 16, 2019, and will last until the end of March 2026.

2. What are the maximum loan amounts for 80% / 90% guarantee products?

The maximum loan amount for products with 80% loan is HK$18 million; while the maximum for products with 90% loan is HK$8 million. It should be noted that these amounts include loans that have already received 80% or 90% loan at any time.

3. What can I do with 80% / 90% loan?

You can use these loans to purchase assets related to your business operations (such as industrial or commercial buildings, machinery and equipment), or to supplement working capital. Refinancing is also possible, but it can only be used to refinance existing eligible loans, not to repay existing loans.

4. What are the repayment methods for 80% / 90% loan?

Fixed-term loans must be repaid in installments and must be fully repaid before the end of the guarantee period. The interval between installments must not exceed 3 months. If you apply for an interest-only arrangement, you can pay only interest for the first 6 or 12 months (depending on the loan product), and then repay the principal and interest in installments.

5. Can I use 80% / 90% loan to repay my existing loan?

Unless refinancing conditions are met, these loan programs explicitly prohibit using the funds to repay or restructure existing corporate loans. In other words, this loan cannot directly resolve your original liabilities.

6. What is the repayment period for an 80% / 90% loan?

Repayment terms will vary depending on your loan plan, but term loans generally need to be repaid before the end of the guarantee period, and each installment payment cannot be more than 3 months apart. In some cases, you can choose to pay only interest in the first installment and then begin repaying the principal.

7. Can 80% / 90% loan be used to purchase residential property?

No! These loans must be used for assets related to business operations, such as industrial or commercial buildings or equipment, excluding the purchase of residential properties.

8. If I only pay the interest, will it affect the guarantee period?

No. If you choose the interest-only repayment method, the guarantee period will not be extended, and you will still need to repay all the principal before the end of the guarantee period.

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