【Regulatory Lending】Ban on "Loan Consultants" Starting August　Financial Secretary Paul Chan: Protecting Citizens　Free from Harassment　Full Package of Measures Not Limited to Foreign Domestic Helpers

SocialAnxietyStaker · 2026-03-15T10:52:45+00:00

The Hong Kong government will implement measures starting August this year to strengthen regulation of licensed moneylenders, including prohibiting the loan consultant system to protect citizens from being influenced by inappropriate information. According to statistics, unsecured loans to foreign domestic helpers showed significant growth in 2023. The new regulations will set caps on lending ratios, and starting in June next year, moneylenders will be required to report borrower information to enable information circulation and prevent over-borrowing.

SocialAnxietyStaker

2026-03-15 10:52:45

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Hong Kong government strengthens regulation of licensed money lenders. The first phase of measures will be implemented starting August this year, banning the system of loan referees (commonly known as loan guarantors). Financial Secretary Paul Chan Mo-po stated that the ban is to ensure that information unrelated to borrowers is not handed over to money lenders, in order to protect citizens.

He pointed out that loan referees are not borrowers, but their names are provided to lenders as part of the loan process, which causes harassment to citizens, especially many families who are used as guarantors for their domestic helpers’ loans.

According to statistics from the Treasury Bureau, from 2021 to 2023, the unsecured personal loans taken out by foreign domestic helpers reached HKD 16.6 billion, with a total of 870,000 transactions. In 2023 alone, there was a year-on-year increase of 13.2% to HKD 6 billion, accounting for more than a quarter of all loan applications in Hong Kong annually.

Regulation Based on Risk Considerations

Starting August this year, restrictions will be placed on those earning HKD 6,000 or less per month, with repayment amounts not exceeding 35% of income. For those earning between HKD 6,001 and HKD 12,000, the upper limit of the repayment ratio is 40%. Loan advertisements must also include risk warnings to make borrowers more aware of the responsibilities and risks they face.

He noted that the regulation considers the basic monthly salary and meal allowances of domestic helpers, adopting a risk-based approach. He emphasized that this tightening of regulations is not limited to domestic helpers but also includes lower-income individuals.

Loan Lenders Must Report Borrower Information by June Next Year

In the next phase, starting June next year, lenders will be required to upload all their information, including loan data, to the “Credit Information Platform.” He stated that nearly 94% of lenders can access information through the platform, which helps prevent the same borrower from borrowing from different lenders, resulting in total loans exceeding the monthly “repayment-to-income ratio” limit, ensuring information flows smoothly.

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