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‘$18M hassle free financing’: ZA Bank launches ‘ZME $18M Loan’

Becoming HK’s first virtual bank to offer up to HKD 18 million financing guarantee facility1

 

  • Loan amount up to HKD 18 million1: Helping SMEs fill in the funding gap
  • Not limited to specific industries: Covering borrow needs of various SMEs in Hong Kong
  • Flexible offering: No interest charge on unused limit; SMEs can arrange drawdown and repayment based on actual needs
  • Guarantee fee fully subsidised 2

 

Hong Kong’s No.1 virtual bank3 ZA Bank has become the first virtual bank in the market to offer a financing guarantee facility of up to HKD 18 million1. The new product “ZME $18M Loan” is a business revolving loan under the SME Financing Guarantee Scheme (SFGS) launched by the HKMC Insurance Limited (HKMCI). This follows the launch of “ZME Revolving Loan” last month, allowing ZA Bank Business Banking to further provide small and medium-sized enterprises (SMEs) with customised loan products and services, and get them through operational challenges under the campaign “$18M hassle free financing”.

Financing is one of the common challenges facing the SME segment. SMEs either find difficulties in borrowing from banks, or receive a loan amount that cannot fully cover their funding needs. “ZME $18M Loan” is an “80% Guarantee Product - Revolving Loan” under the SFGS with a loan amount of up to HKD 18 million. Applications for “ZME $18M Loan” are not limited to specific industries, thereby addressing SMEs’ financing needs for real. Repayment plans are also more customised and flexible, as “ZME $18M Loan” allows room for SMEs to manage their finance based on actual fund usage without any interest charges for the unused limit.

Rockson Hsu, CEO of ZA Bank, said: “Hong Kong’s economy is still under pressure due to the pandemic and external factors. As a new bank that just celebrated the 1st birthday, ZA Bank well understands the challenges of growing an SME business. That is why we decided to roll out ‘ZME $18M Loan’ of up to HKD 18 million for all local SMEs, one month after the official launch of our Business Banking. With this new offering under the tagline ‘$18M hassle free financing’, we hope to provide a relief to SMEs in terms of funding and help them focus on capturing growth opportunities in times of adversity.”

“ZME $18M Loan” seeks to help SMEs save financing costs with an Annualised Percentage Rate (APR) as low as 2.75% 4. To further ease the burden on SMEs, ZA Bank will introduce the following promotional offers to users who successfully open an account and apply for “ZME $18M Loan”:

  • ZA Bank will fully subsidise the guarantee fee if users repay the loan on schedule within one year 2.
  • SMEs which successfully open an account will be exempted from handling fees for all inward transfers throughout 2021 5.

On 22 March 2021, ZA Bank officially launched Business Banking and entered the SME loan business. With flexible and customised loan offerings, ZA Bank Business Banking is dedicated to helping SMEs established or incorporated in Hong Kong overcome challenges. The team of business banking veterans has rich experience and professional analytical skills, enabling them to offer tailor-made loan solutions that address enterprises’ actual needs.

 

Remarks:

1 The maximum loan amount per borrower for the “80% Guarantee Product - Revolving Loan” under the SME Financing Guarantee Scheme (SFGS) is HKD 18 million. SFGS is offered by the HKMC Insurance Limited (HKMCI). To borrow or not to borrow? Borrow only if you can repay.

2 Guarantee fee amount is reviewed by the HKMCI and its decision shall be final. The offer is effective until 31 December 2021. Terms and Conditions apply. For details, please refer to: https://bank.za.group/agreement/pdf/en_US/1000071.

3 “No.1” is defined by ZA Bank’s leading position in the virtual banking industry in terms of number of users, personal deposits and loan amount as of 31 December 2020.

4 Terms and Conditions apply. The APR is net of the interest subsidy under the SFGS. According to the SFGS, the annual interest subsidy rate is a facility’s annual interest rate minus 2.75%, subject to a cap of 3%. Each eligible facility is entitled to interest subsidy for 12 months at maximum in a one-year subsidy period. Please refer to “SME Financing Guarantee Scheme Factsheet” for details. APR is calculated based on the guidelines as set out in the Code of Banking Practice and rounded up to the nearest two decimal places. Interest is calculated on the basis of 365 days per year. The APR is calculated using method specified in relevant guidelines issued by The Hong Kong Association of Banks. An APR is a reference rate which includes the basic interest rate and other fees and charges of a product expressed as an annualised rate.

5 Terms and Conditions apply. For details, please refer to: https://bank.za.group/agreement/html/en_US/1000010. The offer is effective from 1 June 2021 to 31 December 2021 (both days inclusive), and the accumulative maximum fee waiver is HKD 5,000.

 

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About ZA Bank

ZA Bank Limited (“ZA Bank”), licensed by the Hong Kong Monetary Authority (“HKMA”) on 27 March 2019, is one of the first batch of virtual banks in Hong Kong. On 24 March 2020, ZA Bank officially launched its services to the public, making it the first fully-operating virtual bank in Hong Kong. On 22 March 2021, ZA Bank officially launched Business Banking to deliver an innovative banking experience to local small and medium-sized enterprises. ZA Bank was established by ZhongAn Technologies International Group Limited (“ZA International”). With its “Community-Driven” approach, ZA Bank encourages users to directly contribute to its product development and design processes, helping the bank create innovative services that better serve the needs of Hong Kong customers.

Based on market data, Hong Kong’s virtual banks combined have attracted 420,000 users as of 31 December 2020, with HKD 15 billion of deposits and HKD 1 billion of loans. ZA Bank secured a leading position in the industry in terms of number of users (220,000), personal deposits (HKD 6 billion) and loan amount (HKD 650 million), thereby becoming Hong Kong’s No.1 virtual bank.

ZA International was established in Hong Kong in December 2017, by ZhongAn Online P&C Insurance Co., Ltd. (HKEX stock code: 6060), an online-only insurtech company in China, to explore international business development, collaboration and investment opportunities in the area of fintech and insurtech in overseas markets.