Non-means-tested Loan Scheme for Full-time Tertiary Students (NLSFT)
Interest and Administrative Fee
The NLSFT operates on a full-cost recovery basis. Loan borrowers have to pay interest for their loans. Interest rate is set at the Government of the Hong Kong Special Administrative Region (the Government)'s no-gain-no-loss rate which is currently set at 3.813% below the average best lending rate (BLR) of the note-issuing banks, plus a risk-adjusted factor which seeks to cover the Government's risk in disbursing unsecured loan.
Interest is accrued upon loan drawdown and throughout the study period until the loan is repaid in full. Read More
The Director of Accounting Services will review the no-gain-no-loss interest rate by the end of each month according to any changes in the average BLR in the month and will adjust the rate with effect from the first day of the following month. The Finance Committee of the Legislative Council has approved to reduce the risk-adjusted factor to zero with effect from the 2012/13 academic year.
An administrative fee, to cover the full costs of processing the application and administering the NLSFT loan, is chargeable for each application and loan account on an academic year basis. Administrative fee paid is neither refundable nor transferable and is subject to review regularly.
The administrative fee payable under the NLSFT in the 2022/23 academic year is HK $260 per application of which HK $180 is the administrative fee charged by the SFO and HK $80 is the handling charge levied by your institution. You are required to pay the administrative fee upon submission of application.
You should provide the transaction details of administrative fee paid and upload the supporting document for the administrative fee paid, such as the transaction advice or account deposit form, during completion of your online application. Please pay the administrative fee for your application IN CASH to the bank account of the SFO (044-171080-001) at any branch of the Hongkong and Shanghai Banking Corporation (the Bank) and keep the original transaction advice/account deposit form. You may also transfer the administrative fee to the SFO’s bank account no. 044-171080-001 through the automatic teller machine (ATM) of the Bank. During the ATM transaction, please choose “Transfer” service and press “Yes” for “Do you need to take a transaction advice?”. Payment by cheque, online transfer, FPS or PPS is NOT acceptable. Please keep the original copy properly and please consider making an extra photocopy for your own record. The SFO may request you to produce the original copy of administrative fee payment proof. In case of any dispute, the decision of the SFO will be final.
Administrative fee is chargeable upon submission of application and annually thereafter until the NLSFT loan and interest accrued thereon are fully repaid. The annual administrative fee is chargeable on a loan account basis.
Please take note of the charging arrangement for administrative fee. Early lump sum repayment of the NLSFT loan on or before 30 November can save administrative fee for the ensuing academic year. Read More
Administrative fee will be charged on each loan account on an academic year basis. Administrative fee for the coming academic year is chargeable on 1 December each year. If there is any unsettled balance under the loan account on or after 1 December, administrative fee will be demanded for repayment in the demand note with due date falling on 1 January of the following year.
Administrative fee is a fixed fee and will not be charged on a pro-rata basis nor paid by instalments.
Under normal circumstances, loan borrowers will not receive any demand note before the commencement of loan repayment. Thus, the administrative fee accrued during the study period will be demanded for repayment in the first demand note with due date falling on 1 January following the commencement of loan repayment (If loan borrowers have opted for deferred activation of loan repayment, the administrative fee accrued will be demanded for repayment in the demand note with due date falling on 1 January of the following year). If the loan repayment period shall end before 1 December of the loan repayment commencement year, the administrative fee accrued during the study period will be demanded for repayment in the first demand note after commencement of loan repayment. In other words, loan borrowers may be required to repay administrative fee accrued for more than one year in the above-mentioned demand note.
In general, loan accounts will be created on a course basis. Interest and administrative fee will be calculated separately for each account. Request for merging loan accounts of different courses will not be accepted. If you obtain loans under the NLSFT as well as other financial assistance / loan schemes administered by the SFO in respect of the same course, separate loan accounts will be created under the respective loan schemes. Request for merging loan accounts of different schemes will also not be accepted.