The Mortgage Corporation will introduce an 80% loan guarantee product for small and medium enterprises from May 31 at a concessionary fee level, and with an application period of nine months.
This special loan guarantee product is launched as part of support measures for SMEs in the 2012-13 Budget. The Government will provide a total guarantee commitment of $100 billion.
Corporation Executive Director Peter Pang said the guarantee will boost the confidence of lending institutions in offering loans to SMEs while the lower guarantee fee will ease the burden on them amid the volatile economic environment.
"SMEs are the cornerstone of the Hong Kong economy. The corporation is very pleased to support the Government in providing assistance to SMEs while helping banks to manage their risk exposure."
The maximum loan amount for each enterprise, including its related companies is $12 million. Both term loans and revolving credit facilities are eligible. The maximum guarantee period for each loan or facility is five years.
The annual guarantee fee will be about 30% of the existing fee for 70% loan guarantees for the same loan amount.
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