Dah Sing Bank has extended the pricing of its personal-loan products on a floating rate basis, with the launch of a new 'FlexiMoney Overdraft Facility' using this strategy. The bank charges borrowers an interest rate of at least 5 per cent over the prime rate on the product. Interest is calculated on a daily outstanding balance and will only be charged on the used portion of the facility. The facility does not have a fixed maturity and customers can make withdrawals and repayments according to their own needs. This represents the first time a domestic bank in Hong Kong has offered a consumer loan product with a revolving feature priced on a floating-rate basis, although four months ago Wing Hang Bank launched a similar product based on a tax-loan programme. Dah Sing assistant general manager Shera Lee said the revolving feature of the product would encourage some customers to apply as a stand-by facility, even though they had no immediate credit needs. She said the bank had a credit-risk control system in place to assess the repayment capabilities of borrowers. It also uses Credit Information Services, to which a number of institutions contribute their credit information to create a database.