Non-means-tested Loan Scheme
[for full-time tertiary students who are covered under the Tertiary Student Finance Scheme - Publicly-funded Programmes (TSFS)]

	Aim
	Interest and Administrative Fee
	Eligibility
	How to Apply
	Payment of Administrative Fee upon Application
	Maximum Level of Loan Amount under the NLS
	Notification of Result
	Payment of NLS Loan
	Application for Second NLS Loan/Cancellation of NLS Loan
	Change of Personal Particulars
	Loan Repayment
	Deferment of Repayment
	Quarterly Repayment Calculator
	Statistics

Aim

The Non-means-tested Loan Scheme (NLS) provides financial assistance in the form of loan to all students who are eligible for assistance under the Tertiary Student Finance Scheme - Publicly-funded Programmes (TSFS).

For students who are eligible under the Financial Assistance Scheme for Post-secondary Students (FASP), please click here to view the details of the Non-means-tested Loan Scheme for Post-secondary Students.

For students who are not covered by the TSFS and FASP, please click here to view the details of the Non-means-tested Loan Scheme.

Interest and Administrative Fee

	The NLS operates on a full-cost recovery basis. Interest is charged at the Government of the Hong Kong Special Administrative Region (the Government)'s no-gain-no-loss rate which is currently set at 2.984% 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 once the loan is drawn down and throughout the repayment period until the NLS loan is fully repaid. 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. Please refer to "What's New" for the prevailing NLS interest rate.
	An administrative fee, to cover the full costs of processing and administering the NLS loan(s), is chargeable for each application :
		The administrative fee is chargeable as from the submission of the first application and annually thereafter until the NLS loan(s) and the interest accrued thereon are fully repaid. The administrative fee will be charged on each loan account on an academic year basis. The administrative fee for the coming academic year is payable on 1 October each year. If there is any unsettled balance under the loan account on or after 1 October, the administrative fee for the coming academic year will be chargeable and will be demanded for payment in the demand note with due date falling on 1 January next year.
		The administrative fee is a fixed fee and will not be charged on a pro-rata basis nor divided by instalments. Administrative fee paid is not refundable nor transferable.
		Under normal circumstances, loan recipients will not receive any demand note before commencement of loan repayment. Thus, the administrative fee(s) charged during the study period will be demanded for settlement in the first demand note with due date falling on 1 January of the year following the graduation of the loan recipient. In such circumstances, loan recipients may be required to settle administrative fees for more than one year in the first demand note.
		The fee payable on application will include the said administrative fee and a handling charge levied by and payable to your institution.
		The administrative fee is subject to review regularly. The administrative fee payable in the 2009/10 academic year for applicants of NLS is HK $260 of which HK $180 is the annual fee charged by the Agency and HK $80 is the handling charge levied by your institution per application.
	Separate loan accounts will be created on a course basis for applicants who obtain loans for two or more courses. The interest and administrative fee will be calculated separately for each account. Request for merging loan accounts of different courses will not be acceded to. If an applicant obtains loans under the NLS as well as other loan scheme(s) administered by the Agency in respect of the same course, separate loan accounts will be created under the respective loan scheme(s). Interest and administrative fee will be calculated separately for each account. Request for merging loan accounts of different schemes will not be acceded to.

Eligibility

You are eligible to apply for an NLS loan to cover your tuition fees payable in the 2009/10 academic year if you :

	have the right of abode in the Hong Kong Special Administrative Region (Hong Kong) or have resided or have had your home in Hong Kong continuously for 3 complete years immediately prior to the commencement of the course . This does not cover students staying in Hong Kong holding student visas; and
	are a full-time student enrolled in the recognized courses offered by the institutions under the TSFS.
	Your eligibility is restricted to only one eligible full-time course in any particular academic year.
	Even if you are eligible under the above circumstances, the Controller, Student Financial Assistance Agency (C, SFAA) reserves the right to require you to submit supplementary documents/information on individual merits; and the final approval of your NLS application will still rest with the C, SFAA.
	If you and/or your Indemnifier(s) has/have any arrears of grant(s) and/or loan(s) under any financial assistance / loan scheme(s) administered by the Agency, the C, SFAA reserves the right to withhold processing of your application(s) for loan(s) or release of loan(s).

How to Apply

	If you have applied for the TSFS, you will be informed of the financial assistance and/or loan(s) you are entitled under the TSFS and the NLS, if any, simultaneously in your TSFS notification of result. If you wish to obtain a rough estimate of the amount of loan that you could receive, you may refer to the calculator at the TSFS. If you wish to accept the NLS loan offered, you may obtain the required loan documents from your institution or this Agency and submit the loan documents and the bank pay-in slip for the administrative fee paid in person or authorize a person to do so on your behalf to this Agency on or before the deadline stated in your TSFS notification of result.
	If you wish to apply for the NLS only, you should use the NLS application form NLS 112A(2009) or NLS 112B(2009). Downloaded copy/photocopy of the application form NLS 112A(2009) or NLS 112B(2009) are acceptable. Please click here to download the application form concerned.
	Completed forms together with photocopies of supporting documents should be submitted before the deadline to your institution. Your institution will hand in your application to the Agency for processing.

Payment of Administrative Fee upon Application

If you apply for loan(s) under the NLS, you are required to pay the administrative fee for each application. The administrative fee payable for 2009/10 academic year is HK $260 of which HK $180 is the annual fee charged by the Agency and HK $80 is the handling charge levied by your institution per application.

Please pay the administrative fee IN CASH at the Hong Kong and Shanghai Banking Corporation (the Bank) by using the pre-printed bank pay-in slips which are obtainable from the Agency or your institution. Payment by cheque is not acceptable. You may also transfer the administrative fee to the Agency's account no. 044-171080-001 through automatic teller machines (ATM) of the Bank. During the ATM transaction, please choose "Transfer" service and press "Yes" for "Do you need to take a transaction advice?". If you fail to produce the original transaction advice for your NLS application, you have to apply for a bank statement from the bank showing the transaction concerned.

Maximum Level of Loan Amount under the NLS

The maximum NLS loan is capped at the maximum amount of your tuition fees payable. If you have received any financial assistance under the TSFS, the maximum amount of your NLS loan would be the difference between the maximum financial assistance under the TSFS and the amount of financial assistance you may receive under the TSFS, subject to the NLS loan maximum (equivalent to the tuition fees payable) not being exceeded. If you wish to obtain a rough estimate of the amount of loan that you could receive, you may refer to the calculator at the TSFS.

Notification of Result

If you apply for loan(s) under the NLS only and the information provided is complete, you will normally be notified of the result within 3 weeks from the date of the Agency's receipt of your application.

Payment of NLS Loan

	NLS loan will be paid direct to your institution in batches and by instalment(s) to settle your tuition fees in accordance with the schedule of payment(s) as specified in your Student and Indemnifier Details Input Form, subject to your successful submission of an acceptable Undertaking to be signed by a Student Receiving Loans, the Deed of Indemnity and the required documentary proofs produced by your Indemnifier, the Student and Indemnifier Details Input Form and the required photocopies of HKID cards in one complete set. The payment dates are the NLS loan drawn down dates and will be set by the Agency. Under normal circumstances, payments would not be made earlier than the tuition fees instalments due dates.
	After the disbursement of the NLS loan to your institution has been arranged, the Agency will issue a Remittance Advice to you stipulating the amount of the NLS loan to be disbursed and the loan disbursement date for your reference. Please note that the disbursement date stipulated in the Remittance Advice is the NLS loan draw down date of the specified NLS loan.
	If your institution changes the tuition fee instalments due date(s) to other later date(s) for whatever reason and informs the Agency of such after payment(s) has/have already been made, the Agency will be unable to withhold/re-arrange the concerned payment(s). The Agency shall continue to disburse the payment(s) so arranged to the institution on the tuition fee instalments due date(s) originally confirmed and provided by the institution, which is/are the NLS loan draw down date(s). This Agency will not bear the responsibility for any loss or damage caused to you due to the institution’s decision of changing the tuition fee instalments due date(s) under such circumstance(s).
	Neither your application nor the approval for an NLS loan carries any implication that the payment due date(s) of your tuition fee(s) has/have been or will be deferred automatically by your institution. If the payment of the NLS loan to your institution for any instalment cannot be made on or before the tuition fee instalments due date(s)/any designated due date(s) of your tuition fee(s) payment for whatever reason(s), it is your own responsibility to liaise with your institution to see if any prior arrangements should be made in respect of your tuition fee(s) payment. This Agency will not bear the responsibility for any loss or damage caused to you due to your late settlement of tuition fee(s) for whatever reason(s).
	Under normal circumstances, the tuition fee demand note issued to you by your institution should specify the balance of your tuition fee(s) which you should pay on or before the due date, namely the difference between your full tuition fee instalment (including student union fee and other miscellaneous charges, if any) and the amount of NLS loan you have specified for the instalment in question. If the demand note does not show any adjustment following your acceptance of the NLS loan, you should immediately seek clarification from your institution on the amount that you are required to pay notwithstanding any NLS loan you have borrowed or arrangement has been made by the Agency to credit your NLS loan to your institution.
	In any circumstances, NLS loan will only be paid direct to your institution to settle your tuition fee(s). If you have already paid to your institution part/all of your tuition fee(s) on your own before the disbursement of your NLS loan, the Agency will neither adjust the amount of your NLS loan to be disbursed to your institution, nor to disburse any NLS loan to the bank account you have provided in your application form. It is also your own responsibility to liaise with your institution to make necessary refund arrangements on any extra tuition fee(s) paid. This Agency will not bear any responsibility arising therefrom.
	The application, acceptance and disbursement of NLS loan should serve the purpose of settling your tuition fees. If you submit the loan documents to accept the NLS loan at the end of the academic year (i.e. 1 week before the year-end examination), you have to liaise with your institution first and obtain its agreement no matter you have paid your tuition fees or not, and notify the Agency in writing to certify that your institution guarantees to receive the NLS loan directly disbursed to it, or the Agency has the right to refuse the acceptance of your loan documents.
	If you and/or your Indemnifier has/have any arrears of grant(s) and/or loan(s) under any financial assistance/loan scheme(s) administered by the Agency, C, SFAA reserves the right to withhold the payment of financial assistance/loan to you.

Application for Second NLS Loan / Cancellation of NLS Loan

You may apply for a second NLS loan which is equivalent to the difference between the maximum amount of the NLS loan that you may borrow and the NLS loan that you have already indicated to borrow on your first application. An administrative fee (excluding institutional handling charges) is also payable on application. Applications must be made by completing the “Application for a Second NLS Loan” form [NLS 113 (2009)] and submitting the completed form in person or authorize a person to do so on your behalf to the Agency at least 10 weeks before the payment due date of the tuition fees in question. The form is obtainable from the Agency or your institution. No late application for a second NLS loan will be accepted. Please click here to download the application form concerned.

If you wish to apply for cancellation of your NLS loan for any of the tuition fee installments, you should complete the “Application for Cancellation of NLS Loan” form [NLS 114 (2009)] and return it to the Agency in person at least 5 weeks before the payment due date of the tuition fees in question. No late applications for cancellation of NLS loan will be accepted. Alternatively, loan recipients may choose to make early repayment of the NLS loans. Please click here to download the application form concerned.

Change of Personal Particulars

	If there are subsequent changes in your residential address, correspondence address, your bank account number, your residential phone number or other contact phone number, you should immediately notify our Agency by using the "Notification of Change of Personal Data" form (TSF/C/18A). If there are subsequent changes in your institution and/or course of study, or your tuition fees payable in the 2009/10 academic year, you should immediately notify our Agency by using the "Notification of Change of Institution/Course Data" form (TSF/C/18B).
	The above forms are available at this Agency or your institution. They are also downloadable from our Homepage at http://www.sfaa.gov.hk/eng/public/index.htm#nls. Failure in timely provision of changes to the Agency may lead to unnecessary delay in payment(s) to your institution or additional loan being drawn down and interest accrued.
	If you cease/decide to withdraw from/suspend or defer studies or change course/institution, you must notify this Agency immediately in writing for the Agency to take follow up action(s), including but not limited to withhold the payment of the NLS loan to your institution.

Loan Repayment

	The NLS loan(s) borrowed by you and the interest accrued thereon are repayable in 40 equal quarterly instalments within 10 years after you have completed the relevant course or you cease to be a registered full-time student at the institution on or before completion of the relevant course. You may choose to make early repayment of the NLS loan(s). If you do not receive commencement of repayment letter and repayment schedule within 6 months after your graduation, you should notify this Agency in writing immediately.
	Quarterly repayment instalments will normally fall due on 1 January, 1 April, 1 July and 1 October each year.
	If the settlement is delayed by 7 days or more, you will be required to settle with the Government the amount of the overdue instalment, any outstanding annual administrative fee(s) together with any interest loss and recovery costs incurred by the Government due to the late settlement(s) relating to the previous instalment(s).
	You are required to pay an administrative fee annually until the NLS loan(s) and interest accrued thereon are fully repaid. The annual administrative fee is chargeable on a loan account basis.
	You are advised to take note to the charging arrangement for administrative fee. Settlement of the NLS loan in one lump sum on or before 30 September can save administrative fee for the ensuing academic year.
	Repayment can be made :- in cash; by cheque, Cashier Order and Bank Draft; by Payment-by-Phone services; by Automated Teller Machines; in a lump sum; in a partial repayment; and by e-Banking Services.

Deferment of Repayment

If you have difficulties in repaying the NLS loan(s) due to further studies on full-time courses, financial hardship or serious illness, you may apply for deferment of loan repayment. Application for deferment of loan repayment will be considered on its merits and should be submitted in writing to the Agency before the due date(s) of the instalment(s) under application. Relevant application forms are available at the Agency or your institution. You may also download the application form concerned from the Agency's Homepage at http://www.sfaa.gov.hk/eng/public/index.htm#nls. Application for deferment of loan repayment is only applicable to the total amount due for settlement, which may comprise administrative fee(s), if any, interest(s) and outstanding principal(s). Application for deferment of only a part of the amount to be settled will not be acceded to. Interest will accrue over the period of deferment. The deferred loan may be repaid on a revised schedule with fewer number of quarterly instalments and at a larger amount or on any other terms as decided by the C, SFAA. Interest accrued during the deferment period will be capitalized and form part of the outstanding principal for the calculation of the quarterly amount to be repaid in the remaining instalments. In addition, for deferment of more than 12 calendar months, the interest accrued during the deferment period will be capitalized once every 12 calendar months. Loan recipients who have been granted approval for deferment of the NLS loan repayment are still required to continue settling an administrative fee annually during the period of deferment.