$100m microfinance scheme to launch

February 01, 2012

Financial Secretary John Tsang will commission the Mortgage Corporation to introduce a three-year pilot microfinance scheme, offering a maximum loan tentatively capped at $100 million.
 
In his 2012-13 Budget speech today, Mr Tsang said the scheme will be operated on a self-financing basis with supporting services provided to make microfinance more viable, to help people wanting to start their own businesses or take self-enhancement training.
 
Target borrowers are business starters, self-employed people and those who wish to receive training, enhance their skills or obtain professional qualifications for self-improvement.
 
The repayment period will be as long as five years and the interest rate will be set with reference to that of the personal loans charged by banks in general.
 
The corporation will announce details on the scheme soon.
 
Mr Tsang also proposed injecting an additional $200 million into the Community Investment & Inclusion Fund, and make corresponding financial arrangements to incorporate the appropriate individual programmes of the Community Care Fund into the Government’s regular assistance programmes, subject to the views of the Steering Committee on the Fund.