Large Loans: How to Borrow $500K/400K/1M from Banks in Hong Kong

Looking to borrow a substantial amount, such as $500,000, $400,000, $800,000, $1,000,000, or even $2,000,000, for working capital or to pay off credit card debts? Many people choose personal loans (P Loans) from banks because of their low interest rates, strong reputation, and straightforward application process.

Generally, the larger the loan amount you apply for, the more cautious the bank will be during approval, and it may not be as easy to get approved as with smaller personal loans. This article outlines the key considerations when taking out a large personal loan or a loan to pay off credit card debts, helping you understand how to secure the best loan terms.

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Differences Between Large Loans and Small Loans

The loan market does not clearly define large and small loans. However, by comparing the features of loan products and the approval processes, it is easy to observe how banks and money lenders differentiate between them.

Interest Rates and Benefits of Large Loans

When it comes to interest rates, banks’ large personal loans generally offer more favorable rates. As long as the loan amount and specified conditions are met, the annual interest rate can be as low as 2% or below. Of course, to qualify for an unsecured loan with an annual rate as low as 2%, the borrower must have an excellent financial standing, income level, and credit history.

Using a reasonable Annual Percentage Rate (APR) of 5% and a repayment period of 36 months, the monthly repayments and total interest payments for large loans ranging from HK$500,000 to HK$2,000,000 are as follows:

Loan Size	Monthly Repayment (HK$)	Total Interest Paid (HK$)
HK$500,000	14,985.45	39,476.15
HK$600,000	17,982.54	47,371.38
HK$700,000	20,979.63	55,266.61
HK$800,000	23,976.72	63,161.84
HK$900,000	26,973.81	71,057.07
HK$1,000,000	29,970.90	78,952.30
HK$1,500,000	44,956.35	118,428.44
HK$2,000,000	59,941.79	157,904.59

Loan Size

In the current market, mainstream personal loans offer a wide range of loan amounts, starting as low as HK$2,000 and going up to approximately HK$3,000,000. Banks also consider the borrower’s monthly income, with the most common loan limit being around 12 times the monthly salary.

In fact, many personal loan products offer high flexibility in loan amounts. For example, Aistar Bank’s personal loan offers loan amounts ranging from HK$2,000 to HK$1,000,000, effectively catering to both small and large loan needs. Other products, such as Citi Speedy Cash, can go up to HK$3,500,000, and DBS Personal Instalment Loan can approve amounts above HK$1,500,000.

Required Documents and Approval Time for Large Loans

When applying for a personal loan, most lending institutions require the submission of identification documents and proof of address. Whether income proof is needed depends on the product features and the specifics of the application.

Generally, if the loan amount is HK$100,000 to HK$150,000 or more, banks or money lenders usually require applicants to provide formal income records to demonstrate their ability to repay. To manage risk, banks may request additional supporting documents for large loan applications, and the approval process may take longer.

On the other hand, institutions that focus on providing small loans may not ask for income proof or check the borrower’s credit report, which simplifies the loan process. For instance, the Grantit’s Non-TU and Express Personal Loan is a popular option for small loan needs in the market, with a loan limit of HK$80,000.

How to Increase Approval Chances for Large Amount Personal Loans

If you’re looking to secure a large amount personal loan, consider the following tips to enhance your approval prospects:

High-Income Earners Can Borrow More

The maximum loan limit for personal loans from banks typically depends on the specific product and is often calculated based on a multiple of your monthly salary, using the lower figure as the basis. For example, Airstar Bank’s Personal Loan terms state that the “loan amount can be up to 12 times your monthly salary or HK$1,000,000 (whichever is lower). In other words, the higher your monthly salary, the larger the loan amount you can borrow. For instance:

Income Verification Documents Help

Banks often only require proof of one month’s income for individuals with stable and fixed incomes. However, for those with variable or non-fixed incomes, banks may request proof of income for three months or more. Ensuring that you have the necessary income documentation readily available can streamline the approval process.

Higher Loan Limits for Debt Consolidation Loans

If your goal in borrowing is to repay one or more existing credit card debts or loans, consider opting for a balance transfer loan (also known as a debt consolidation loan). This approach has the advantage of allowing you to manage your debts in a centralized manner and often reducing the overall interest payments.

Balance transfer loans generally offer higher limits, reaching up to 21 times your monthly salary, significantly higher than the typical personal loan limit of around 12 times your monthly salary. Additionally, most banks only allow customers to use balance transfer loans to repay existing debts. However, some banks may permit customers to withdraw small cash for other purposes.

Larger Loan Amounts for Longer Repayment Terms

When banks assess loan applications, they consider the borrower’s monthly repayment capacity. Opting for a more extended repayment period can help reduce the monthly repayment amount, thereby increasing the total loan amount you can borrow.

For example, tax loans are attractive due to their lower annual interest rates, but they typically have a loan limit of around 12 times your monthly salary and a maximum repayment period of 24 months. In contrast, standard personal loans offer longer repayment terms, such as up to 60 months, and higher loan limits. Therefore, if you require a substantial loan amount, a standard personal loan better meets your needs than a tax loan.

Good Credit History Increases Approval Chances

TransUnion and Ping An OneConnect Credit are the two credit reporting agencies in Hong Kong that provide personal credit reports. These reports record applications for credit cards and loans and any missed or late payments.

For instance, TransUnion assigns credit scores from A to J. Late repayments, multiple credit card applications within a short period, and other negative behaviors can lower your score, while consistently making on-time payments can improve it. Maintaining a good credit history makes getting approved for large personal loans easier. Therefore, developing good repayment habits and effectively managing your credit cards is essential.

Carefully Consider Needs and Risks Before Borrowing a Large Loan

Taking out a large personal loan of HK$500,000, HK$1,000,000, or more inherently involves higher financial risks. Poor management of such loans can negatively impact your financial health.

Key Risks of Large Loans:

High Repayment Pressure: Large loans come with higher monthly repayments. If your income becomes unstable or unexpected expenses arise, you may struggle to make timely repayments.
Financial Stability: Failure to manage large loan repayments effectively can jeopardize your financial stability and overall health.

Recommendations Before Borrowing:

Assess Your Needs: Ensure that the loan amount you are seeking is necessary and justifiable based on your financial situation.
Evaluate Repayment Capacity: Carefully evaluate your ability to manage and repay the loan without compromising your financial stability.

Some Appropriate Uses for Large Personal Loans

Apart from loans with specific purposes, such as balance transfer loans or mortgages, banks and finance companies generally do not strictly restrict how a personal loan can be used. However, large loans usually involve higher total interest costs and may create long-term financial obligations. Borrowers should therefore carefully assess their financial needs and repayment capacity before applying.

Below are several common uses for large personal loans and the key considerations for each.

Common Uses of Large Loans	Key Considerations
Buying Residential Property or Investing in Real Estate	Purchasing property is one of the most common reasons for large loans. In many cases, borrowers may consider applying for a mortgage or property-backed loan, which typically offers lower interest rates (around 3.5% mortgage rates in the 2025 market) and longer repayment periods. Borrowers should pay attention to property market volatility and ensure that the loan amount aligns with the property’s value under the Loan-to-Value (LTV) ratio. If property prices decline, the outstanding loan balance may exceed the property’s value, increasing financial pressure.
Starting a Business or Expanding Operations	Entrepreneurs and SME owners often use large loans to launch new businesses or expand existing operations. Business loans from banks usually require detailed business plans, financial projections, and company registration documents to demonstrate the feasibility of the business and repayment capability. Some banks offer dedicated SME startup loans with lower interest rates and flexible repayment arrangements, although borrowers may still be required to provide a personal guarantee. Business failure remains a risk, and insufficient revenue may affect repayment ability.
Education or Professional Development	Large loans are sometimes used to finance children’s education or personal professional training. Education loans typically offer relatively low interest rates and flexible repayment arrangements. However, borrowers should consider the possibility that expected income may not materialize immediately after graduation, which could increase repayment pressure.
Medical Expenses or Emergency Costs	Unexpected medical bills or other emergency expenses may require substantial funding. Although personal loans can be used for such situations, some expedited loan approvals may come with higher interest rates. Even in urgent situations, borrowers should consider alternative financing options with lower costs when possible.