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Comparing personal loans in Hong Kong can be fast, easy, and hassle-free. Find out what our great customers have to say about Lendela.
Four fast steps to your personal tax loan in Hong Kong:
1. Apply online in a few minutes
2. Receive offers from multiple lenders
3. Compare offers and select online
4. Sign the agreement and get the money
Our goal is to make your loan application process quicker, simpler, and more transparent. As Hong Kong's only true personal loan comparison service, we support you all the way from application to disbursement. Whether you are looking for a personal tax loan in Hong Kong or need a personalised low-interest loan for all your expenditures, Lendela is the platform to help you get the best deal. Click below to read more about Lendela and how we empower thousands of loan-seeking Hongkongers every month.
Tax loan is a very popular service in Hong Kong. This article provides all the necessary details you need to know before applying for a personalised tax loan, as well as how to find the ideal loan for your specific needs.
A tax loan is a kind of loan that is offered by banks and money lenders to help taxpayers pay their tax bills. In Hong Kong, a tax loan is usually offered during the tax season, when taxpayers file their income tax and need to settle their taxes for the prior year. The tenure of a tax loan is usually 12-24 months; and this is typically shorter than other loan types.
Usually, a tax loan in Hong Kong can be approved within a day. So, you can get the loan amount transferred in your bank account the same day. Interest charged on tax loan can be lower than other types of loans and people tend to opt for this loan because of easy and quick access to cash.
Paying taxes on time is the best strategy, but sometimes you don’t have access to the cash needed. Also, if you have investments like time deposits, you may be better off taking a low interest tax loan than losing money on investment income. Below you can see some of the ways to best finance your tax debt.
Instalment agreement: If you are unable to pay your tax debt in one go, you can sign up an instalment loan with your bank or money lender. Instalment loans will help you repay your debt easily through monthly or yearly instalments.
Offer in compromise: you can set up an OIC with your bank or money lender if you are having trouble in repaying your tax debts. The OIC allows you to clear off your debt in less than actual loan amount owed. The bank or money lender will assess factors such as your income, expenses, ability to pay before signing the OIC. Therefore, your offer can get rejected if a bank or lender realises you are unable to pay in the future.
Use a credit card: It’s not a good idea to take another loan to pay one. But if you are short on cash and can push your payments to a later date, then you can pay your instalments through credit card.
Apply for a loan against property: To finance the tax loan, taking a loan against property can be considered a good option. Mortgages are comparatively low and just like personal tax loans, home loans are very easy to get in Hong Kong.
Lendela is an online loans market place with multiple banks and money lenders registered on its website. Lendela provides easy access to various kinds of tax loans with the lowest rates possible from reputable banks and loan companies in Hong Kong. You can easily find and compare various tax loans and select the best loan without any charges. You can also get real-time tax loan offers from different banks and money lenders based on your ratings and profile.
At Lendela, you can easily borrow a tax loan up to HKD1,000,000. As an online marketplace, we ensure the best possible services to both the money lender and borrower. We keep the strong check on both the borrower and lender before approving the loan listing on our website. The minimum salary required to apply for a tax loan is HKD7,000 per month.
Getting a tax loan is very easy and takes very few steps to get the loan in your bank account:
Submit the application form: First thing you have to do is to fill up the online application form and fill out all the necessary details such as name, identity card number, income, etc. Once you fill out all the necessary details, you then need to submit all the necessary documents, such as proof of income, proof of residency, last notice of assessment and demand for tax, etc.
Wait for approval: After submitting the application form for a tax loan, you have to wait for approval from the bank or loan company. Usually, banks in Hong Kong take around one working day to approve the tax loan application if all the details are filled out correctly.
Disbursement of amount: If the tax loan is approved, the bank will disburse the cash in 2-3 days to your bank account or directly pay your tax bills.
Getting a tax loan is quick and simple. You need to make sure that you provide all the complete details.
Financial borrowing is very complicated and can result in high debt problems. Therefore, it is advisable to consider a few things before applying for a personal tax loan:
Interest rate: Usually banks used to charge lower interest rates on tax loans than other loan types in Hong Kong. But this year, the scenario has changed and interest rates are going to be higher than last year, so it would be a good idea to compare different interest rates before getting a tax loan.
Repayment period: Tax loans are short terms loans usually from 12-24 months. Interest charged on short term loans is usually higher so loan amount payable can be very high. So you have to see your income, expenses and choose the repayment period accordingly.
Annualised percentage rate: APR includes all the interest rates, management fees, other charges, etc. you should make sure that you compare different tax loans and choose with the lowest APR rate.
Borrowing amount: As the interest rates for tax loans in Hong Kong are usually lower than personal loans, the borrower might borrow a higher amount than needed. Therefore, you need to make sure that you plan very well on how much amount you need and where you are going to spend it. Extra borrowed money can incur the high cost and result in heavy debt payments.