General enquiries of Debt Consolidation Loan

You may find the general enquiries of Debt Consolidation Loan.

What is the advantage for applying Debt Consolidation Loan?

It helps you clear all your card debts in one go. With a fixed monthly instalment plan and extended repayment periods, you can save interest expenses substantially and clear your card debts easily.

Since all debts are concentrated in one account, interest and principal are paid monthly therefore the interest expenses are greatly reduced.

How to determine the interest of Debt Consolidation Loan?

The interest of Debt Consolidation Loan is a fair personal rate and the monthly interest rate is as low as 0.04%. The interest rate mainly depends on the past repayment records and the debts, customers with good repayment record can enjoy a lower interest rate. On the contrary, those customers with a poor repayment record will have a higher interest rate to balance the bank's risk exposure.

Minimum payment or partial payment can be settled, why I need to clear my card debts?

The interest rate of credit card is high and the APR of credit card cash advance is much higher. The monthly repayment will settle interest first and then remaining balance will settle the principle. As the interest is charged on a daily basis, your credit card debts accumulate and paying them off is nowhere in sight.

If the statement balance is not pay in full on the payment due date, every new transaction will be subject to the finance charge accruing from the transaction date.

After having a Debt Consolidation Loan, can I keep the credit card for future use?

In order to clear the card debts for customer, we encourage customer to cut their credit cards.  However, considering the inconvenience of customer, you can choose to reserve a credit card for backup when you apply Debt Consolidation Loan and we will justify according to their financial conditions.

Can I cash out?

As Debt Consolidation Loan aims to clear your debts, the approval loan amount will be settled you debts and will approve additional cash depends on the customer's financial conditions and requirements.

What is the arrangement for the early settlement and late payment?

In case you want to apply early settlement, you need to provide written notice to the Bank upon seven days’ prior and pay the outstanding loan principal, outstanding handling fee, interest up to the next repayment date and an early settlement administrative fee. The early settlement administrative fee shall be calculated by reference to the number of years in the remaining Loan period and chargeable for each year at a rate of 1.5% per annum on the principal amount of the Loan.

The Bank will charge a default interest of 3% of the total monthly repayment amount overdue and a late charge of HK$300 (Whichever is higher).

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