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

* Important Notice
* Aim
* Eligibility
* Maximum Level of Loan Amount under the NLS
* Interest and Administrative Fee
* How to Apply
* Payment of Administrative Fee upon Application
* 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

Important Notice

The Government of the Hong Kong Special Administrative Region is reviewing the operation of the Non-means-tested Loan Schemes (NLS). The result of the review may have impact on the eligibility, loan amount that can be borrowed, and repayment terms and conditions. Subject to the approval of the proposals by the Legislative Council, the Government will implement the proposals in phases from the 2012/13 academic years onwards.

The terms and conditions of an NLS loan stipulated in the Application Guidance Notes are provisional and subject to changes pending the result of the review mentioned above. The finalised terms and conditions will be announced later and will be clearly stipulated in the "Notice of Offer of Loan under the Non-means-tested Loan Scheme for 2012/13", the "Undertaking to be Signed by a Student Receiving Loans" and the "Deed of Indemnity" to be issued with the "Notification of Result of Application for Loan under the NLS". Please ensure that you have read and fully understood the revised terms and conditions of the NLS loans and agree to the terms of, and undertake to abide by these revised terms and conditions before acceptance of the NLS loans offered to you in 2012/13 academic year.

The public consultation on the improvement proposals ended on 29 February 2012. Details of the improvement proposals of the review are available on a dedicated website on the Education and Training Cluster of the GovHK portal.

Aim

The 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 (for eligible students who are not covered under the TSFS and FASP).

Eligibility

You are eligible to apply for an NLS loan to cover your tuition fees payable in the 2012/13 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 recognised courses offered by the institutions under the TSFS.
* Your eligibility is restricted to only one eligible full-time course in any particular academic year.
*

If you are going to join an overseas exchange programme in the 2012/13 academic year, you are still eligible for applying for loan(s) under the NLS provided that you are registered as a full-time student and take up an exclusively UGC-funded or exclusively publicly-funded student place of a recognised course at a recognised institution.
*

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 and/or loan and/or student travel subsidy under any financial assistance / loan scheme(s) administered by the Agency, the C, SFAA reserves the right to withhold processing of your application(s) or release of loan(s).

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.

Interest and Administrative Fee

*

The NLS operates on a full-cost recovery basis. 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 3.409% 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 charged at the prevailing NLS interest rate 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 fees paid are 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 2012/13 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.

How to Apply

For Continuing Students:

*

You may make your application or be informed of the offer of loan(s) under the NLS through the following channels:

(i) 

submit the NLS Application Form [NLS 112B(2012) or NLS 112A(2012)]; or
(ii)
 

if you have applied for the TSFS, you will be informed of the loan(s) entitled under the NLS, if any, in your TSFS notification of result.
*

If you wish to apply for the NLS only, please click here to download the NLS application Form [NLS 112B(2012) or NLS 112A(2012)]. You should read the relevant Guidance Notes carefully before completing the application form.

*

 

 

 

 

 

 

You should submit the completed form together with the following supporting documents to your institution before the deadline. Your institution will hand in your application to the Agency for processing.

(i)  a photocopy of your Hong Kong Identity (HKID) Card;
(ii)
 
 		 a photocopy of your Student Identity Card and/or any documentary proof showing your course of study in the 2012/13 academic year and your student identity;
(iii)
 		 a photocopy of the first page of your bank passbook of your savings account or bank statement showing your name and the bank account number; and
(iv)
 		 the customer copy of the bank pay-in slips or the original automatic teller machines (ATM) transaction advice for the administrative fee paid.
* 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 through an authorised person to this Agency on or before the deadline stated in your TSFS Notification of Result.

For New Students:

Details of application arrangement will be announced in August 2012.

Payment of Administrative Fee upon Application

*

If you apply for the NLS, you are required to pay the administrative fee for each application. The administrative fee payable for 2012/13 academic year is HK $260 of which HK $180 is the 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 any branch of the Hongkong and Shanghai Banking Corporation (the Bank) by using the pre-printed bank pay-in slips which are obtainable from your institution or the Agency. Payment by cheque is not acceptable. You may also transfer the administrative fee to the Agency's account no. 044-171080-001 through 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 documentary proof from the bank showing the transaction concerned.

 

Notification of Result

*

If you apply for loan(s) under the NLS only and the information provided is complete, the Agency will normally issue the “Notification of Result of Application for NLS Loan” to you (a) within 3 weeks from the date of the Agency's receipt of your application; or (b) around mid-July when the TSFS’s grant and loan ceilings are determined (applicable to continuing students only); whichever is later.
*

If the information provided is incomplete or if there are discrepancies in the information provided, the Agency may require you to give an explanation or provide supplementary information, in which case the processing time will be longer.
*

If you are on a postgraduate course, the processing time of your application may be longer as the Agency may need to confirm with your institution the exact amount of tuition fees payable by you in the 2012/13 academic year for the purpose of determining the maximum amount of the NLS loan that you may borrow.

Payment of NLS Loan

*

NLS loan will be paid direct to your institution by instalment(s) to settle your tuition fees in accordance with the schedule of payment(s) as specified in your "Student, Indemnifier and Witness Details Input Form (Form A and Form B)", subject to your successful submission of an acceptable "Undertaking to be signed by a Student Receiving Loans", the "Deed of Indemnity under the NLS", the "Student, Indemnifier and Witness Details Input Form (Form A)" and the required documentary proofs mentioned in the "Notice of Offer" 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. The Agency reserves the right not to accept your loan documents if you submit the loan documents to accept the NLS loan after 30 June 2013 since the respective academic year has been normally over, unless your notification of result is issued within the immediate past 2 months.
*

If you and/or your Indemnifier has/have any arrears of grant and/or loan and/or student travel subsidy 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 accepted on your NLS loan application. An administrative fee (excluding institutional handling charge) is payable on application. Applications must be made by completing the “Application for a Second NLS Loan” form [NLS 113(2012)] and submitting the completed form in person or through an authorised person to the Agency at least 10 weeks before the payment due date of the tuition fees in question. The form is obtainable from your institution or the Agency. Any 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 (Rev. 2012)] 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. Applicant will be liable to the NLS loan paid and the interest accrued thereon and to settle/repay the Agency the full amount of the NLS loan so disbursed and the interest accrued thereon plus any recovery costs incurred by the Government. Loan recipients may in turn 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 paid/payable in the 2012/13 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 your institution or this Agency. Please click here to download the forms concerned. Failure in timely provision of changes of information to the Agency will cause delay in processing your application, or in making payment(s) to your institution or additional loan being drawn down and interest accrued therefrom.
*

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 your institution or the Agency. You may also download the application form here. 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.