Must Read | 3 Tips for Choosing the Best Tax Loan

For Hong Kong residents paying Salaries Tax or Provisional Tax, payments are usually split into two instalments: the first in January and the second in April. That’s why October to April is peak season for tax loan (also known as tax season personal instalment loan). Banks and financial institutions often promote these loans with low interest rates, cash or points rebates, fast approval, and flexible repayment terms.

But when everyone claims “lowest rate in the market” or even “0% interest,” how do you choose wisely and ensure you’re really getting a low-interest tax loan? Here are 3 key tips to help you decode the secrets behind low-interest tax loans!

Tip 1 | A Good Credit Rating = Easier Approval & Lower Interest Rates

When you apply for a tax loan, lenders typically check your credit report from Credit Reference Agencies like TransUnion to assess your risk and repayment ability. Your credit report is crucial—it includes your repayment history, total outstanding debt, and overall credit records, all of which affect your credit rating.

If you’ve used credit cards or personal loans before, you already have a credit report that tracks your credit-related activities. Generally, the higher your credit rating, the more stable your credit profile, which means lenders see you as more likely to repay on time. This increases your chances of approval and getting a lower tax loan interest rate.

If your credit score is low, you may face:

· Higher loan interest rates

· Lower approved loan amounts

· Possible rejection

So, if you want a truly low-interest tax loan this season, maintaining a good credit record is essential!

3 Practical Ways to Improve Your Credit Rating

1️⃣ Don’t Rely Only on Cash | Build a Stable Credit History

Many people think “not borrowing = good credit,” but having no credit history makes it hard for lenders to assess your repayment ability. You can:

· Apply for one or two credit cards and use them responsibly

· Pay off balances on time every month to build a positive repayment record

· Longer and more stable credit history helps improve your score

2️⃣ Smart Credit Card Usage | Avoid Over-Reliance & Min Pay Trap

Credit utilization ratio matters—this includes your card balances and number of cards. If you only have one card and max it out, your score may drop. You can:

· Pay off your full balance monthly, not just the minimum payment

· Avoid applying for too many cards in a short time

· Consider increasing your credit limit (higher limit + lower balance ratio = better score)

3️⃣ Check Your Credit Report Regularly | Plan Ahead for Loan Applications

Credit report data usually comes from banks or financial institutions. If there’s an error, you can request corrections from agencies like TransUnion. If you plan to apply for a loan, check your score 6–12 months in advance to allow time for improvement. You can:

· Review your credit report regularly to maintain a healthy score

· Correct any errors promptly

✨Check your TransUnion credit report for FREE in just 4 steps via the WeLab Bank App!

^{The screen displays and images on this website are for illustrative purpose only. Please refer to the information displayed in the WeLab Bank App on the transaction day.}

Tip 2 | Stable Repayment Ability = Better Approval & Rates

Besides credit rating, your repayment ability is another key factor for tax loan approval and interest rates.

If you have a stable income, regular monthly salary, and can provide proof of income—especially if you work in government, professional roles, or other stable jobs—you’re more likely to get approved at lower rates.

Lenders also assess your overall financial health, including:

· Existing loans (e.g., mortgage, personal loans, credit card balances, etc.)

· Monthly fixed expenses (e.g., rent, utilities, food, transportation, insurance, etc.)

· Overall debt ratio

If your repayment ability is insufficient and your application is rejected, you can:

· Apply for a smaller loan amount

· Choose a longer repayment term to reduce monthly payments

(Note: Longer terms mean higher total interest, so consider your long-term affordability—not just monthly payments.)

Tip 3 | Choose Smartly: Understand Hidden Conditions Behind Tax Loan Offers

Every tax season, banks and lenders roll out attractive tax loan promotions—0% interest, low rates, cash rebates, reward points, fast approval, etc. But these offers often come with hidden conditions, such as:

· New customers only

· Minimum loan amount required

· Specific repayment terms

· Application via designated channels

· Deposit new funds into the bank

· Restricted to certain professions

👉 Read more: Tax Season Loan Survival Guide

With so many options, it’s worth spending time comparing offers. Before applying, check if you meet the conditions for the real “low interest” deal. Beyond maintaining a good credit rating, understanding the details during tax season and choosing a plan that fits your needs, financial situation, and repayment ability is the smartest move!

WeLab Bank Tax Loan Offer 💰

WeLab Bank’s tax season personal loan offers an APR as low as 0.65%¹, with no need for million-dollar loan amounts. Enjoy 3 major benefits to meet any financial need:

1️⃣ HKD 0 handling fee

2️⃣ Flexible repayment terms from 6 to 60 months

3️⃣ No income or address proof required²

From application to approval and disbursement—all done in one app, with cash available the same day³!

Limited time offer: Get up to HKD 18,888 cash rebate⁴ when you successfully apply and draw down your personal instalment loan!

👉 Learn more: WeLab Bank Tax Season Loan Offer

🔥 Download the WeLab Bank App now—open an account in as fast as 5 minutes⁵, and apply for your loan in one app!

^{To borrow or not to borrow? Borrow only if you can repay!}

^Remarks:

^{(1) The annualized percentage rate (“APR”) ranges from 0.65% to 36.00% and loan amount ranges from HKD 10,000 to HKD 1,500,000 with repayment period of 6 to 60 months. Assume the loan amount as HKD 283,000 with tenor of 24 months, the APR will be 0.65% (including a cash rebate of HKD 3,000) or 1.68% (without any cash rebate) and total repayment amount will be HKD 287,924.20. The APR is calculated according to the guidelines issued in respect of the Code of Banking Practice and rounded to the nearest 2 decimal places. The APR is a reference rate, which includes all applicable interest rates, fees and charges of the product, expressed as an annualized rate. The final APR offered is subject to the applicant’s application information, personal credit record, and the final approval process.}

^{(2) We reserve the right to request customers to provide additional supporting documents for the loan application. The actual time for the loan approval and the loan disbursement may vary depending on the information provided by the customer and are subject to the credit assessment result. Any loan application is subject to assessment against normal lending criteria.}

^{(3) The estimated period is calculated from the day the loan agreement is signed. The actual approval period and the actual loan disbursement time may vary upon information provided by the applicants.}

^{(4) From now on until 31 March 2026, successful WeLab Bank Personal Loan applicants with an approved loan of minimum of HKD 150,001 amount and tenor of 24 months can enjoy up to HKD 23,888 (for Debt Consolidation Loan applicants) and HKD18,888 (for Personal Instalment Loan applicants) cash rebate if the loan is drawn down within 7 days after approval; The cash rebate amount will be credited into the HKD Core Account on or before 31 July 2026. Please refer to}^{terms and conditions}^{for more details.}

^{(5) Account opening time may vary depending on network conditions, mobile device, and required documents.}

Must-Read Before Applying for Tax Loans | 3 Tips for Choosing the Best Tax Loan & Improving Your Credit Rating!