HSBC supports HK SMEs take flight with loan interest rebate offer (with tips for loan | Article – HSBC VisionGo

The bank has introduced timely support such as earmarking HKD40 billion in a new financing scheme to help businesses navigate challenges .
Finance  ·    ·  4 mins read

Businesses in Hong Kong are currently facing a uniquely demanding set of challenges brought by the Covid-19 outbreak. Recognising this, the Government has rolled out a series of measures such as SME Financing Guarantee Scheme (SFGS), Pre-approved Principal Payment Holiday Scheme (PPPHS) and BUD Fund to support SMEs moving forward to seize the opportunities and to relieve their liquidity crunch.  Access to financing has long been one of the main challenges of SMEs because of their limited scale of business or lack of high-quality collateral, leading to a particularly severe impact on the financial standing of SMEs in an economic downturn.

 Over the past year, Hong Kong's economy has been hit hard by the pandemic. To help businesses navigate challenges and cushion the blow from Covid-19, the bank has introduced timely support such as earmarking HKD40 billion in a new financing scheme, with interest rebate up to HKD20,000 plus a range of service offers.  

 If accessing finance for your business is one of the challenges you are recently facing, you may read the article below to understand what offers are included in this supportive loan program to help you recover as soon as the epidemic subsides.  “HKD40 Billion SME Financing Scheme” helping business take off again 

Apart from relief schemes backed by the HKSAR Government, banks also proactively introduced a range of measures to cushion the blow from Covid-19 on SMEs.   A HKD40 billion supportive loan programme for local SMEs has been launched by HSBC to support them to find a footing for future growth and to ease their liquidity problem. In addition to funding, successful applicants will also receive a range of service offers to help them drive new growth, including two-month interest rebate on new term loans with a ceiling of HKD20,000. 

The “HKD40 Billion SME Financing Scheme” covers different types of term loans under various loan schemes, including:   

What are the benefits for SMEs to apply for this scheme? 

In addition to funding, SMEs can enjoy two-month interest rebate plus a range of service offers:

HSBC "HKD40 Billion SME Financing Scheme"*

Successful applicants for the new term loan under “HKD40 Billion SME Financing Scheme” can enjoy two-month interest rebate of up to HKD20,000. 


For new Trade and Receivables Finance customers, up to 50% off 

trade transaction fees for the first two months


The first 500 customers who open a Business Integrated Account online and successfully apply for the financing scheme can enjoy 100% account opening fee rebate (save up to HKD1,300)

 


You can also enjoy a range of service offers**, such as:

Fee waivers for new registrants of HSBC Business Collect service, with a value up to HKD10,500

  • Point-of-sale solution device installation fee, device rental fee, set-up fee and annual fee will be waived until 31 December 2021***
  • Waiver for FPS QR code transaction fee for the first 3 months

100% waiver on additional autoPay payment code setup charges and 100% waiver on transaction fees in the first 2 months for new autoPay customers


50% discount of first-year standard premium rate of HSBC Benefits+ Life Insurance Plan

 

have applied for SFGS in the past. What will happen if I apply for this scheme again?  

If your company has applied for SFGS80 or SFGS90 in the past, you are eligible to either the two-month interest rate rebate or the interest subsidy provided by HKMCI, according to the following circumstances: 

  • If you successfully apply for SFGS80 and SFGS90 on or before 31 May 2021, you will continue to enjoy the interest subsidy by HKMCI^ ,and will not be eligible for the interest rebate under the HKD40 Billion SME Financing Scheme.
  • If you submit or renew your applications for SFGS80 and SFGS90 after 31 May 2021, you can enjoy the two-month interest rebate on new term loans with a ceiling of HKD20,000, plus the range of service offers under the HKD40 Billion SME Financing Scheme. 
  • You will not be eligible for the two-month interest rebate if you apply for SFGS100 as it does not fall under the HKD40 Billion SME Financing Scheme.

 If you want to know more about SFGS, you may click here  

^ The annual interest subsidy rate for SFGS80 and SFGS90 is the Facility’s annual interest rate minus 2.75%**, subject to a cap of 3%. Each eligible Facility is entitled to interest subsidy for 12 months at maximum in a one-year subsidy period. 

How can I apply for HKD40 Billion SME Financing Scheme? 

 If you are interested in applying for the scheme, here are some information you should not miss out on.  

Application period:

From today until 30 November 2021

Eligibility:

 

The Scheme is open to all HK SMEs with annual sales turnover no larger than HKD800 million

 

 

Documents required#

  • Application Form (If any)
  • Certificate of Incorporation / Business Registration Certificate
  • HK identity card or passport of guarantor(s) / owner(s)
  • Hong Kong residential address proof of guarantor(s) / owner(s)
  • Personal Guarantee by company owner / director (for Limited Companies only)
  • Financial statement of the last three years… etc 
#The required application documents will vary with different loan schemes and circumstances, please contact your relationship manager or a branch for details. 

My company needs to obtain funds as soon as possible, how can I speed up the loan application process? 

Applicants can speed up the loan process by providing all required information and documents to the bank upfront as additional processing time may be needed if supporting documents are missing. If you had a borrowing relationship with the Bank previously and have maintained a good track record of repayment history, it will usually give a boost to the application process as well.  You may contact your relationship manager or click here to know more about the scheme. 

The economies have been hard-hit since the outbreak of Covid-19, and we believe our commitment to provide continuous support to each other along the way will help businesses revive and re-emerge even stronger. 

If you are interested in applying for the HKD40 Billion SME Financing Scheme, please contact your relationship manager or click here to know more! 

* In case of any dispute in connection with the Loan, the Bank’s decision shall be final. 
** Terms and conditions apply and subject to contract. Please refer to the respective terms and conditions on HSBC website.
*** subject to third party vendor’s terms and conditions. If there are any disputes or losses arising out of or in connection with this offer, HSBC shall not be held liable. Reminder: “To borrow or not to borrow? Borrow only if you can repay!”
 
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