The Hong Kong Mortgage Corporation launched a microfinance programme yesterday, aimed at helping the cash-strapped - from start-ups to self-employed.
The agency, which aims to promote wider home ownership and develop the local debt market, said it was working with six banks and five non-governmental organisations to promote the plan.
The scheme offers micro business start-up loans, self-employment loans and self-enhancement loans.
Financial Secretary John Tsang Chun-wah said one key difference between the microfinance scheme and traditional loans was its additional services to clients - including mentorship, entrepreneurial training and support from non-government organisations.
'Although the size of the loans is somewhat modest, they can still provide a good measure of assistance to borrowers,' said Tsang.
The total loan amount is capped at HK$100 million. Any individual aged 18 or above with a Hong Kong identity card or a one-way permit can apply for a loan under the pilot scheme, which will run for three years.
The micro business start-up loan will be capped at HK$300,000 for individuals. Self-employment loans will stop at HK$200,000 and self-enhancement loans at HK$100,000 - or up to 100 per cent of the training course or examination fee, depending on which is lower.