In Hong Kong, any individual or company wishing to legally engage in money lending must obtain a “Money Lender Licence.” This licence is issued by the Hong Kong courts (usually the Magistrates’ Court) and regulated under the Money Lenders Ordinance (Cap. 163). Only licensed lenders are permitted to provide loan services in Hong Kong; otherwise, such activities are unlawful.

The application process involves submitting an application to the court and publishing a public notice to inform the community. When reviewing applications, the court considers the applicant’s background, integrity record, financial standing, and whether appropriate operational arrangements are in place. Once approved, the applicant becomes a licensed “money lender” and is granted the licence.

Licensed money lenders must comply with several requirements, including:

• Clearly displaying their licence number on all loan agreements and advertisements;
• Avoiding unfair or misleading lending terms;
• Adhering to statutory interest rate caps and contract format requirements;
• Being subject to ongoing monitoring by regulators and the courts.

The purpose of this regime is to protect borrowers, prevent usury or improper debt collection practices, and maintain financial order. Licensed lenders who breach regulations may face fines, licence revocation, or even criminal liability.

In summary, the “Court-Issued Money Lender Licence” serves as the legal threshold for money lending in Hong Kong, ensuring that lending activities are conducted within a transparent, fair, and regulated framework. It safeguards borrowers’ rights while reinforcing market trust and stability.