1. Who is required to obtain a money lender’s licence?

1. Who is required to obtain a money lender’s licence?

Generally speaking, any person who carries on the business of making loans or who advertises or holds out in any way as carrying on the business of making loans is required to be licensed.

Certain lenders and certain lending transactions are expressly exempted and are not caught by the Money Lenders Ordinance (Cap. 163). For example (non-exhaustive):

1. Licensed banks and deposit-taking companies regulated by the Hong Kong Monetary Authority and insurance companies regulated by the Insurance Authority are not required to obtain the money lender’s licence for making loans. 
2. Loans made by an employer to its employees, loans under a credit card scheme to its credit card holders, and loans for the purchase of immovable property secured by a mortgage of that property, are not caught by the Money Lenders Ordinance (Cap. 163).

If a person is not making loans as a business, no money lender’s licence is required. However, that person is still subject to section 24 of the Money Lenders Ordinance (Cap. 163). Section 24 regulates excessive interest rates and applies to any person whether or not they are a money lender. Please refer to the discussion on interest rates regulation for more details.