If you're smart, you don't rely on loans unless you absolutely have to. Let's make that absolutely clear first and foremost. Even if it means taking a hit to your lifestyle for a while, if you can get what you need to do done without having to borrow money, you should. At the end of the day, it's going to cost you a lot more than you think if you have to borrow money, no matter how you slice this.
Bad credit loans, which are the ones that the average person are generally stuck having to settle for, are exceptionally expensive, and will get to why in just a moment. If you want to apply for personal loan in Hong Kong, you're going to be eating some nasty interest rates no matter what you do. We can't fix this, but we can give you some tips on where to look to find the best possible interest rates you can find, though you'll have to do your homework even then.
First, let's talk a little bit about why loans are so difficult in general, and whether exceptionally tricky in Hong Kong.
Someone ruined it for the rest of us!
Remember being a kid in school, and some kid did something remarkably stupid that resulted in a new role in the classroom that ruined it for everyone else? An example would be kids not being allowed to chew gum in class because a bunch of kids want stuck a bunch of gum under desks, so now nobody gets gum. Well, irresponsible people defaulting on loans ruined that for everyone as well. Yes, those people are generally punished either directly or indirectly to some form, but at the end of the day, the lenders are out whatever money they loaned and aren't profiting in the way they set out to do.
So, either you have to have good credit, some kind of significant collateral or be willing to pay out the nose in order for lenders to be willing to work with you. It sucks, but it is what it is.
Looking online is your best option!
Okay, so if you want to get a personal loan in Hong Kong, you can go into banks and lending agencies and talk to people, and right now that's an exceptionally bad idea due to Covid 19, or you can look online. Yes, this is safe to do, and it actually makes the following advice are going to give you a lot more easy to apply.
When you're looking online, you can see in inscrutable detail exactly how the loan works. These bad credit loans are required to itemize the total cost you be paying per period for the loan. If they don't list all of the costs in a transparent manner, they're actually violating a lot of laws. Here, you'll be able to see additional ways that they're getting money from you, such as premium increases on your interest rate, unnecessary service fees and handling charges, etc.
Finally, let's talk for a moment about why this is so bad in Hong Kong. It's not just Hong Kong, it's a lot of smaller developed nations and autonomous zones such as Macau and Singapore as well. Being tax havens, a lot of foreign businesses invest in Hong Kong, and this has compelled the government here to have more lax regulations about interest rates and loan conditions.
This is a trade-off, though, because considering some of the low wages experienced by a lot of people, the quality of life is disparately high. So, just understand that ends places like this, every potential con artist in the world is out there, and if they aren't fully transparent with you, you don't want to do business with them.
Look online for your loan, read the fine print and understand that even with this wisdom, you're just going to have to cope with a somewhat higher interest rate than you probably want to. If you're smart, you can at least lock-in that interest rate and not see any increases, nor be paying mystery costs for things you didn't see listed.