SME Financing Guarantee Scheme

Chiyu Bank, committed to providing continuous support to local SMEs, has joined the "SME Financing Guarantee Scheme" (SFGS)1 launched by The Hong Kong Mortgage Corporation Limited on 1 January 2011. We are pleased to offer flexible lending solution to meet your financing needs and facilitate your business growth.

Loan Features:

Loan Type

"Term Loan" and "Revolving Credit Facility"2 are available

Loan Amount

Maximum loan amount of up to HK$12,000,000

Loan Purpose

To finance the expenses of business operation, the purchase of assets (excluding personal residential property) or operating equipments / machines3

Loan Guarantee Amount

 The Hong Kong Mortgage Corporation Limited will provide loan guarantee of up to 80%

Guarantee Fee4

 The minimum Guarantee Fee is 0.5% p.a. of the loan amount

Eligibility5

 Non-listed companies with substantial business operating in Hong Kong for at least one year

Repayment Period

 Up to 5 years

Preferential interest rate and handling fee

Application Hotline: (852) 3982 9767

Remarks:
  1. For details of the "SME Financing Guarantee Scheme", please visit the website of The Hong Kong Mortgage Corporation Limited at www.hkmc.com.hk or contact Chiyu Banking Corporation Limited (the "Bank").
  2. "Revolving Credit Facility" includes the overdraft and trade facilities.
  3. The relevant loan and credit facility cannot be used for repaying, restructuring or repackaging other loans borrowed from the Bank or any third parties.
  4. The exact amount of the Guarantee Fee will be approved and determined by The Hong Kong Mortgage Corporation Limited (HKMC) and is subject to the announcement made by the HKMC.
  5. Non-listed companies which have been in business operation in Hong Kong (with substantial business) for at least 12 months prior to the application for the SFGS are eligible to apply for the scheme, and the corporate applicants must have no outstanding default with any financial institutions. Individual shareholder(s) of the corporate applicant whose shareholding is more than 50% of the equity interest of the corporate applicant is (are) required to provide personal guarantee for the loan.

The above products, services and promotional offers are subject to the relevant terms and conditions of the Bank. For more details, please contact the Bank's staff. The Bank reserves the right to amend, suspend or terminate the above products, services and offers, and amend their relevant terms and conditions at any time at its absolute discretion without prior notice. In case of any dispute, the decision of the Bank shall be final.

The Bank reserves the right to approve and reject the loan application at its absolute discretion. The actual loan amount, interest rate, handling fee and applicable terms and conditions are subject to the Bank's final approval.

In case of any discrepancy between the Chinese and English versions of this promotional material, the Chinese version shall prevail.

SME Loan Guarantee Scheme (SGS)

In full support of the SME Loan Guarantee Scheme (SGS) revised on 6th Nov 2008 by HKSAR Government, Chiyu Bank is pleased to offer flexible lending solutions for you to meet your financial needs. The maximum loan amount is up to HK$12,000,000 with preferential interest rate.

Loan features1：

"Guarantee for Business Installations and Equipment Loans" and "Guarantee for Working Capital Loans" are available for you to choose from

Business Installations and Equipment Loans (BIE)

Working Capital Loans (WCL)

Loan Purpose

Acquiring business installations and equipment relating to the applicants' business operations within or outside Hong Kong. Business installations and equipment may include machinery, tools, computer software and hardware, communication system, office equipment, transport facilities, furniture and fixtures.

General business use in meeting working capital needs of the applicants.

Maximum Loan Amount

HKD12,000,0002

Guarantee Amount

Up to HK$6,000,000 or
50% of loan amount 3

Eligibility4

Manufacturing business with employees fewer than 100 persons in HK or
Non-manufacturing business with employees fewer than 50 persons in HK

Repayment

By installments
Repayment period of up to 5 years

Preferential interest rates

Application Hotline: (852) 3982 9767

Remarks:
  1. For details, please browse www.smefund.tid.gov.hk.
  2. The maximum loan amount of HKD12,000,000 is applicable to both BIE and WCL
  3. Whichever is lower. The guarantee can be used to secure either BIE or WCL, or a combination of both. If customers have fully repaid the BIE or WCL backed up by the guarantee under the Scheme, customers are eligible for the respective guarantee amount one more time, subject to a maximum amount of HKD6,000,000.
  4. If customer has been established for 18 months or more, its latest audited account (for a limited company) or its latest statement of accounts (for an unlimited company) should be submitted to our bank upon loan application.

To borrow or not to borrow? Borrow only if you can repay!