Do you need to renovate your house, buy a new car, or consolidate your debt so that it is easier to pay? Then you’re probably thinking about getting a personal loan. A personal loan can be used to pay off all these expenses and more, and you do not need to offer collateral to secure one.

Finding the best personal loan offers can be a long and arduous process because they each have different conditions and terms. Since this can lead to a lot of confusion and uncertainty, a lot can go wrong when making a final decision, which could potentially impact your personal and financial life over the short and long term. That’s why we’ve created this guide for choosing the best personal loans in Hong Kong.


What is a Personal Loan?

Before you compare personal loans, you need to understand exactly what they are and how they work. A personal loan is an unsecured loan, meaning you do not have to put down a deposit or use collateral to obtain it.

After you apply for a personal loan and are granted it, you will receive a one-time cash payment that you then have to repay over a number of years. Your lender will charge you interest on the repayments and other charges will also be applied, such as processing fees.

There are a few pros and cons to this type of loan. It is unsecured, which means you do not have to risk losing your personal assets if you default on the repayments. However, this also means that the loan rates are often higher than other types of loans. And because these loans are a little riskier than other types, your lender will look very carefully at your credit history, credit score and your ability to repay it before granting the loan.

Now that you understand exactly what these loans are, let’s take a look at how to do a personal loan comparison.

Choosing the Best Personal Loans

When you start looking at the best personal loan companies and deals, you’ll find an overwhelming number of options in Hong Kong. Here’s how you should break it down to make your choice simpler:

Do a Budget First

You should only borrow what you can comfortably repay when you take out a personal loan. This will help you avoid financial strain and protect your credit rating at the same time.

Find a Legitimate Lender

The internet has unfortunately brought about the rise of fake lenders and loan scams. If you fall victim to one of these scammers, it will severely affect your credit history and your financial stability, so choose a legitimate, registered entity.

Here’s what to look out for from fake lenders:

  • Unclear or missing contact details

  • Very high processing fees

  • ‘Too good to be true’ terms like automatic approval

  • Lenders that pressure you to accept a great offer that’s ending soon

Find the Best Bank for Personal Loans

What this means is that you need to look beyond the big banks. Getting your personal loan through one of many renowned banking institutions may seem easier and more secure, but the truth is that you probably won’t get the best deal this way.

Smaller online lenders often offer the lowest rates on the market, so do a personal loan comparison before you commit to rates that are higher than they need to be. However, if you already have a relationship with a big bank and a good credit history and score, it is worth asking to see what kind of rates they can offer you.

Look at the Interest Rates

Obviously, you want the lowest interest rates that you can get with your personal loan. And this means you need to look at the right interest rate.

The advertised interest rate is the one that your lender will be very happy to talk to you about. It is often quite low and designed to catch your attention. Then there’s the effective interest rate, which is often higher and includes all the extra charges that you pay like the processing fee.

Calculating the effective interest rate is difficult and complicated, but your lender will have the information. Just make sure you check it before you take out your loan as you don’t want any unwelcome surprises in the future.


You should make sure that you can refinance your loan if needed. This means you can renegotiate and adjust the terms and conditions of the loan at any stage. This can be a good way to save money and it will also help protect you if the worst happens and you’re unable to repay the loan in the time agreed.


No one wants to look at the fees on a loan, but it is important to do so as they can significantly affect how much you have to pay. When you compare personal loan rates, make sure you compare the fees, particularly the early repayment charges and processing fees, to get the best deal possible.

Ready, Steady, Loan

Do not let all the jargon and technical language scare you away from finding the best personal loan offers for your situation and credit. By doing the work, you can sign up for a deal that suits your budget and lifestyle.

You can make that easier by using Lendela to compare personal loans. As a loan comparison site that works with the top lending institutions in Hong Kong, our loan matching algorithms can quickly and safely help you find lenders that suit your needs and requirements, so you get real, personalised offers from multiple lenders with one simple application.

Ready to find the best personal loan for you? Fill out a free application form today.