The Hong Kong Mortgage Corporation (HKMC) said yesterday it would launch a three-year microfinance project with banks to provide loans to business start-ups that have difficulty obtaining credit.
The agency, which aims to promote wider home ownership and develop the local debt market, said net profit rose about 4.4 per cent to nearly HK$1.26 billion year on year.
HKMC said it expected the pilot microfinance scheme to take off around mid-year.
Loans to business starters will be capped at HK$300,000, those to self-employed people at HK$200,000, and those to people who 'receive self-enhancement training' at HK$100,000.
Several of the city's banks are expected to work with the HKMC.
The agency purchased HK$9.7 billion of loans in the city last year.