Starting tomorrow (Dec. 30), the statutory interest rate cap for lending stipulated in the Money Lenders Ordinance (Cap. 163) (MLO) is amended from 60 percent to 48 percent per annum, and the threshold of extortionate rate (which may trigger reopening of the transaction by the court, having regard to the relevant circumstances) is amended from 48 percent to 36 percent per annum.
The aforementioned changes, which were approved by the Legislative Council in October of this year, will be applicable to loan repayment agreements and interest payment agreements coming into force from tomorrow.
"Members of the public are reminded to note the latest statutory interest rate cap for lending when borrowing. Under the MLO, licensed money lenders are also required to furnish borrowers with a note or memorandum setting out, amongst others, the principal of the loan and the rate of interest charged," a spokesman for the Financial Services and the Treasury Bureau said.
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