New Hong Kong money-lender safeguards took effect on 1 August 2026

Confirmed Government update, effective 1 August 2026. Hong Kong's first-phase measures to strengthen regulation of licensed money lenders took effect on 1 August 2026. ↗ They apply to licensed money lenders and do not, by themselves, make an employer liable for a foreign domestic helper's borrowing. Whether anyone has liability depends on the relevant documents and circumstances, including whether they signed a guarantee.

What changed

Licensed money lenders may no longer ask a borrower to provide a loan referee. The Government also introduced debt-servicing-ratio caps for unsecured personal loans to lower-income borrowers:

• 35% for monthly income of HK$6,000 or below;
• 40% for monthly income from HK$6,001 to HK$12,000.

The announcement concerns licensed money lenders and unsecured personal loans. It is not a general ban on borrowing or a new obligation for a helper's employer.

Who is affected

The safeguards affect licensed money lenders and borrowers seeking the relevant unsecured personal loans. A household's position depends on its own involvement and the relevant documents, rather than the helper having a personal loan alone.

Practical next steps

If a lender contacts a household about a helper's loan, do not assume the household is liable. Check whether anyone has signed a guarantee or other loan document before giving information or making a payment. Keep a record of the contact and seek independent legal advice if a document appears to create an obligation.

Last verified

21 September 2026. This is general information, not legal advice; individual liability depends on the documents and facts.