UA Debuts the First and Only “New Renter’s Loan” in Hong Kong. Easing Burden of Renters from Deposits, Instalments and Other Expenses
Personal loan leader United Asia Finance Limited (“UA”) has announced the launch of the "New Renter’s Loan”, the only loan service that is dedicated to renters, before the peak for rentals in summer, with an aim to bring the most helpful and caring loan service for the “Generation Rent” in Hong Kong.
Mr. K. Y. Li, Chief Operations Officer of UA shared, “Property prices in Hong Kong have continued to rise in the past decade. Compared with the financial tsunami in 2008, the cumulative increase of property prices has climbed nearly 2.5 times. The skyrocketing property prices have made property in Hong Kong unaffordable to most people, especially the younger generation or newly-married families, who have no choice but rent a flat as a result. According to market research in 2018, the rate of increase in rents has reached a 6-year high.*”
“However, two months of deposits, one month’s upfront payment plus the additional fund for basic household goods or other expenses, are quite a burden for renters, especially for those who are new renters. Thus, such expenses bring them financial pressure and short-term cashflow difficulties. Adhering to UA's "customer-oriented" service motto and the commitment of continuous striving to solve financial problems for different customers, UA has observed the imminent need of Hong Kong peoples to rent a residence, and simultaneously noted that the market tends to focus on providing loans for those property owners, neglecting the need of financial support for renters. Hence, UA steps first in the market to provide another innovative service for the renters, launching the “New Renter’s Loan” to cater for their needs. Again, UA strives to continue to provide the most caring loan services from the perspective of our customers in need, i.e. the “tenants” this time.”
Simple approval process, peace of mind for tenants
The applications process of the newly launched “New Renter’s Loan" is simple. Applicants only need to apply with their Hong Kong identity card and rental contract signed within the last three months. Applicants could secure an approved loan amount up to 10x of the monthly rental or HK$200,000^ (whichever is lower) with monthly interest rate as low as 1%. The service helps new tenants in need of cash to successfully rent a new flat with ease and then can enjoy the life in the newly-rented flat care free.
Rent accounts for up to 50% of wage earners’ incomes
Indeed, UA has previously launched the "Property Owner's Loan" service which is designed for those who have already owned a property. As an industry leader, UA continues to closely communicate with its customers and keep pace with the market to understand the ever-changing market’s needs, that’s why UA has debuted the one and only renter’s loan service in Hong Kong which best caters for another customer segment at the opportune time. According to market research, those with rental expense accounting for up to 80% or more of disposable income, or with housing expenses accounting for 30% or more of total income are coined as “house-rent slaves”; meanwhile, some market commentary also stated that rent may already accounts for nearly 40% to 50% of workers’ monthly salary**. While the continuous and expeditious growth of second-hand properties’ rent can be staggering, in stark contrast, wage earners only received an annual wage increase of 3% to 4%,*** far less than the increase in rent; therefore, rent has become a huge burden on many wage earners. In addition, new participants of the flat rental market may also need to use a certain amount of additional cash for deposits and purchasing household goods, and that is surely an added financial stress on them.
Since its establishment 25 years ago, UA has been providing diversified and innovative personal loan services to Hong Kong customers. UA has been upholding its philosophy of putting customers first through an attentive and professional service attitude which positions it at the forefront of the personal loan market in Hong Kong. In the future, the Company will continue to introduce professional loan services, operate in close concert with market trends and technology development, leading the industry forward and providing customers with caring services customized to meet their needs.
^The customers are required to meet the credit conditions of the Company, including the customers having a good credit history in other credit reference agencies. The company reserves the right to make final decision on the loan amount, annual interest rate and repayment period or reject the entire loan application.
* Data from Ming Pao Finance news article : https://bit.ly/2TRRjYl
** Data from HK01 news article : https://bit.ly/2VSLfjY
*** Data from Centaliine Property Agency Limited : https://bit.ly/2T836Sl
Mr. K. Y. Li, Chief Operations Officer of UA shared, “Property prices in Hong Kong have continued to rise in the past decade. Compared with the financial tsunami in 2008, the cumulative increase of property prices has climbed nearly 2.5 times. The skyrocketing property prices have made property in Hong Kong unaffordable to most people, especially the younger generation or newly-married families, who have no choice but rent a flat as a result. According to market research in 2018, the rate of increase in rents has reached a 6-year high.*”
“However, two months of deposits, one month’s upfront payment plus the additional fund for basic household goods or other expenses, are quite a burden for renters, especially for those who are new renters. Thus, such expenses bring them financial pressure and short-term cashflow difficulties. Adhering to UA's "customer-oriented" service motto and the commitment of continuous striving to solve financial problems for different customers, UA has observed the imminent need of Hong Kong peoples to rent a residence, and simultaneously noted that the market tends to focus on providing loans for those property owners, neglecting the need of financial support for renters. Hence, UA steps first in the market to provide another innovative service for the renters, launching the “New Renter’s Loan” to cater for their needs. Again, UA strives to continue to provide the most caring loan services from the perspective of our customers in need, i.e. the “tenants” this time.”
Simple approval process, peace of mind for tenants
The applications process of the newly launched “New Renter’s Loan" is simple. Applicants only need to apply with their Hong Kong identity card and rental contract signed within the last three months. Applicants could secure an approved loan amount up to 10x of the monthly rental or HK$200,000^ (whichever is lower) with monthly interest rate as low as 1%. The service helps new tenants in need of cash to successfully rent a new flat with ease and then can enjoy the life in the newly-rented flat care free.
Rent accounts for up to 50% of wage earners’ incomes
Indeed, UA has previously launched the "Property Owner's Loan" service which is designed for those who have already owned a property. As an industry leader, UA continues to closely communicate with its customers and keep pace with the market to understand the ever-changing market’s needs, that’s why UA has debuted the one and only renter’s loan service in Hong Kong which best caters for another customer segment at the opportune time. According to market research, those with rental expense accounting for up to 80% or more of disposable income, or with housing expenses accounting for 30% or more of total income are coined as “house-rent slaves”; meanwhile, some market commentary also stated that rent may already accounts for nearly 40% to 50% of workers’ monthly salary**. While the continuous and expeditious growth of second-hand properties’ rent can be staggering, in stark contrast, wage earners only received an annual wage increase of 3% to 4%,*** far less than the increase in rent; therefore, rent has become a huge burden on many wage earners. In addition, new participants of the flat rental market may also need to use a certain amount of additional cash for deposits and purchasing household goods, and that is surely an added financial stress on them.
Since its establishment 25 years ago, UA has been providing diversified and innovative personal loan services to Hong Kong customers. UA has been upholding its philosophy of putting customers first through an attentive and professional service attitude which positions it at the forefront of the personal loan market in Hong Kong. In the future, the Company will continue to introduce professional loan services, operate in close concert with market trends and technology development, leading the industry forward and providing customers with caring services customized to meet their needs.
^The customers are required to meet the credit conditions of the Company, including the customers having a good credit history in other credit reference agencies. The company reserves the right to make final decision on the loan amount, annual interest rate and repayment period or reject the entire loan application.
* Data from Ming Pao Finance news article : https://bit.ly/2TRRjYl
** Data from HK01 news article : https://bit.ly/2VSLfjY
*** Data from Centaliine Property Agency Limited : https://bit.ly/2T836Sl