New rules may drive more low-income debtors in Hong Kong to unlicensed lenders

25 June 2025

Concern groups have warned that taking loans from unregulated money lenders in Hong Kong may become a growing problem among low-income borrowers, including domestic helpers, if the government’s proposed regulations on licensed money lenders impose overly strict borrowing limits. The warning came a day after the Financial Services and Treasury Bureau launched a two-month public consultation aimed at strengthening the regulation of money lending.

Among the proposed measures is a limit on unsecured personal loans relative to the borrower's monthly income: those earning HK$5,000 (US$637) or less per month would be restricted from borrowing more than their monthly earnings, while borrowers with income between HK$5,001 and HK$10,000 would face a cap of twice their monthly income. This move is part of broader efforts to curb excessive borrowing while balancing the needs of vulnerable groups.