BEA Introduces Corporate Tax Loan Program
Low interest rate tax loan for business, including SMEs,
Early bird rate for applications prior to 30 November.

Hong Kong, 15 October 2002 – The Bank of East Asia today announced that it has launched a Corporate Tax Loan Programme (the Programme), offering a low-interest tax loan to cater for the funding needs of local businesses, including SMEs.

Applicants may obtain a loan for up to 100% of the current tax bill or HK$1 million, whichever is lower. A flexible repayment period from 6 to 12 months is available, with repayment by monthly instalment. The Programme allows businesses to spread their tax obligation over several months, and make more efficient use of cash flow.

The interest rate structure for the Tax Loan is clear and straightforward, so that customers may easily calculate the exact cost of borrowing. General customers will enjoy a rate of 1.5% over the Bank's Best Lending Rate (BLR) for loans up to HK$300,000, and 1.25% over BLR for loans of HK$300,000 or over. The Bank's BLR is currently 5.125% p.a. The minimum loan amount is HK$50,000.

Privileged customers, including existing commercial customers, credit card merchants, and MPF clients of the Bank, will be entitled to a 0.25% reduction on the rates quoted above.

Applying for the Tax Loan is simple. Applicants are required to provide bank statements covering the most recent 6 months, the relevant tax bill, and relevant business registration documents. The result of the application will usually be available within 2 working days of submission of all required documents. For added convenience, applicants may draw the loan directly by cashier order, or through their own account with the Bank. An arrangement fee of 0.5%, with a minimum of HK$1,500 for general customers and HK$1,000 for privileged customers, will be collected upon disbursement of the loan.

From now until 30 November, an early bird rate of 0.25% p.a. less than the applicable interest rate will be offered. Please call the enquiry hotline on 2211 1338 or visit the BEA web site at www.hkbea.com for further details.

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