How Do You Compare The Best Personal Loans In Hong Kong?

An emergency might befall at anytime and anywhere. And this is what personal loans are for.  However, availing of personal loans in Hong Kong typically involves certain considerations. Here are the key factors that you need to consider. 

APR or Annual Percentage Rate

APR stands for the total cost or actual expenses of borrowing. This includes admin fees, interest rates, handling fees, and annual rates, among others. In Hong Kong, Annual Percentage Rates are likely to differ from one service provider to the other. For example, if you are a borrower with a positive credit rating, you can get an APR at a percentage as low as 3%. On the other hand, if you have a lower credit score, then APRs might shoot up as much as 20%, sometimes even more. Certain financial companies charge quite a high APR, sometimes up to 43%. 

What More to Think About

Before securing loans, you need to decide on the loan amount. Choose a service provider that would cover the amount that you would need. Also, look for the flexibility that your loan provider offers for repayment. Speaking of the period, the personal loan providers offer an installment ranging from 6 to 84 months. While looking for loan providers, you also need to work out the total payable interest. Also, look for the extra fees involved, including the handling fees, early repayment fees, and the fees for late payment. 

How Much to Expect?

Depending on your credit score and needs, you can search from different loan providers. You can get anything from HK$3,500,000 to HK$2,000,000. There are also loan providers that sanction amounts as much as 12x to 20x of your monthly salary. You can also apply for civil servant and professional loans under certain circumstances. The APR can be anything from 1.78% or 2.2% of the loan amount, sometimes even more. 

Comparing Your Loans

You can get help from different online platforms that allow you to weigh against personal credits from different producers. It brings along cash back and exclusive deals that benefit you. Also, make sure to check the official websites of different financial institutions and banks to compare what loan products they have to offer. Using a loan calculator can also be helpful.

When you decide to secure a loan, it is important to think about your unique financial situation. Look for a loan product that aligns with your credit score, income, and expenses. Also, remember that loans with a longer period of repayment might also mean a relatively low amount of monthly payment. However, it also means that it might increase the total payable interest.