Microfinance Scheme

HKFYG YBHK – Innovation, Entrepreneurship, Create the future


The spirit of entrepreneurship is essential to Hong Kong’s economic development. To promote the culture of youth entrepreneurship, The Hong Kong Federation of Youth Groups (HKFYG) has been organizing various youth start-up activities since 2002. This includes “Livewire” and “Livewire – Lunar New Year Bazaar Award Scheme” co-organized with Shell Hong Kong Limited.

In 2005, HKFYG set up Youth Business Hong Kong (YBHK), which aims at providing one-stop service for ambitious youth entrepreneurs, including interest-free loan, business mentorship and business networks. The ultimate goal is to help equip youths aspired to be entrepreneurs with essential skills and to provide them with another choice as an alternative to traditional modes of employment.

 



About Microfinance Scheme


Seven years of advocacy for youth entrepreneurs show that they have not only created social wealth but also increased job opportunities and boosted a dynamic economy. To support local start-ups, the Hong Kong Mortgage Corporation Limited ("HKMC") launched the Microfinance Scheme ("the Scheme") in collaboration with banks and non-governmental organizations ("NGOs") in June 2012. The Scheme aims to offer Micro Business Start-up loan, Self-employment loan and Self-enhancement loan to assist people who wish to start their own businesses, become self-employed or achieve self-enhancement through training, upgrading of skills or obtaining professional certification.

 



The HKFYG is one of the participating non-governmental organizations of the Scheme. Interested applicant(s) can apply for the Scheme through YBHK. Please make appointment via phone for submitting application form and related documents in person.


1. Key Product Features


 

Micro Business Start-up loan

Self-employment loan

Self-enhancement loan

Maximum Loan Amount

HK$300,000


HK$100,000 or up to 100% of training course/examination fee (after deduction of any government/Student Finance Office (SFO) or Employees Retraining Board (ERB) subsidy
), whichever is lower.

Interest Rate

Not higher than 9% per annum or 8% per annum if a satisfactory third-party guarantee is provided

(Participating banks may have different interest rate calculation methods. Please read "Costs and Other Important Notice" session for more details.)

Loan Tenor

1 year, 2 years, 3 years, 4 years or 5 years

Repayment Arrangement

  • First 3 months principal repayment holiday for loan tenor of 1 year
  • First 6 months principal repayment holiday for loan tenor of 2 and 3 years
  • First 12 months principal repayment holiday for loan tenor of 4 and 5 years

* Borrowers are required to pay interest only during the principal repayment holiday

 *Existing or former borrowers of Micro Business Start-up Loan or Self-employment Loan who have/had maintained their existing or former loans for at least two years and a satisfactory repayment record under the Scheme can apply for a new loan (either a Micro Business Start-up Loan or a Self-employment Loan) with a maximum loan amount of HK$600,000 (including the existing outstanding loan amount under the Scheme except Self-enhancement Loan, if any) and an interest rate not higher than 8% per annum.


2. Eligibility Criteria


 

Micro Business Start-up loan

Self-employment loan

Self-enhancement loan

Applicant(s)/Guarantor(if applicable)

  • Individual aged 18 or above and holder of Hong Kong Identity Card (with the right of abode, right to land or right to stay in Hong Kong without restrictions) or a One-way Permit
  • Not subject to any bankruptcy order or proceedings at the time of application

Relevant Requirements

  • Business may be conducted in the form of sole-proprietorship, partnership or limited company incorporated in Hong Kong
  • If the business is owned by more than one person, all partners and business owners must be co-borrowers (The maximum number of borrowers is three).

The course should be related to business start-up or career development. Eligible courses /examinations include:

  1. Courses which are eligible for grant or loan from the SFO or funded by the ERB but not or have not been fully subsidized by the SFO or ERB;
  2. Accredited by the Hong Kong Council for Accreditation of Academic and Vocational Qualifications;
  3. Professional examinations administrated by the Hong Kong Examinations and Assessment Authority; and
  4. Any other courses or examinations will require approval from the HKMC

For the purpose of establishing a new business or conducting an existing business which has been established for less than 5 years (counting from the date of the first business registration)

For conducting a self-employment business

 

3. What is the role of the participating NGOs?


Participating NGOs play as a supportive and guiding role in the Scheme. Throughout the application, the NGOs will assist the applicant in applying for the Scheme, with the provision of various training programs and professional consultancy. These services aim at enhancing business knowledge of the applicants who can then better prepare for their own business. For instance, after passing the first-stage of assessment, the NGO will help arrange business tutors who will facilitate the applicant when preparing for the business proposal. In addition, the NGO will recommend suitable business courses in order to meet the requirements of the Scheme.

Applicants can submission their applications process through the participating NGOs on the list. Each participating NGO may serve different targets with different services and experiences. Applicants are recommended to read details and opt for the suitable NGO before application.



YBHK accepts applications of the Scheme from all Hong Kong people aged between 18 and 35 (including new immigrants).

 


4. Enquiry


YBHK
Tel: (852) 3595 0945
Email: ybhkmf@hkfyg.org.hk
Please make appointment via phone for submitting application form and related documents in person.

The Hong Kong Mortgage Corporation Limited
Hotline of the Scheme: (852) 2536 0707
Website of the Scheme:
 http://www.hkmc.com.hk/eng/our_business/microfinance_scheme.html
Email of the Scheme:  mf_enquiry@hkmc.com.hk