1. What are loan intermediaries?

1. What are loan intermediaries?

Loan intermediaries (also known as financial intermediaries, credit agencies or brokers) generally refer to individuals or companies that broker loan agreements between lenders and borrowers in exchange for a commission or handling fee from the lender. 

In this regard, licensed money lenders in Hong Kong are prohibited from granting a loan to an intending borrower if the loan involves a loan intermediary appointed by them but whose particulars have not yet appeared on the Register kept by the Registrar of Money Lenders. Please click here to access the Register from the website of the Companies Registry. 

Further, Authorized Institutions (as defined in the Banking Ordinance (Cap. 155)) have ceased accepting referrals from loan intermediaries for loan applications. 

By reason of the prevalence of malpractices and scams, any intending borrower who wishes to apply for a loan through a loan intermediary from a licensed money lender is recommended to check if the loan intermediary is (i) registered by checking the Register kept by the Registrar of Money Lenders and (ii) appointed by the licensed money lender.