In “The Chief Executive’s 2023 Policy Address,” the Chief Executive announced that the SME Financing Guarantee Scheme (SFGS) will offer more flexible repayment options. This includes the ability for enterprises to choose to repay only 10%, 20%, or 50% of the original principal repayment amount each month for a specified period. This allows them to gradually transition from principal moratorium to normal repayments. Currently, eligible borrowing enterprises can apply for partial principal repayment (PPR) arrangements for their term loans. The new PPR option under the SFGS will allow borrowing enterprises to repay only 10% of the original principal repayment amount per installment for a period of 12 months. HKMC Insurance Limited will work with lending institutions to implement this option by November, and enterprises are advised to contact their lending institutions promptly to discuss the arrangements.
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