Handling fee
手續費
A handling fee is what a lender charges for processing, approving or releasing a loan, usually a percentage of the loan amount or a fixed sum. Some lenders deduct it from the loan when it is drawn, so you receive less than the loan amount; others bill it separately. It is part of what the loan costs, so it pushes the APR up.
Example
Suppose you borrow HK$100,000 and a 1% handling fee is deducted when the loan is drawn.
- Loan amount
- HK$100,000
- Handling fee 1%
- HK$1,000
- Amount received
- HK$99,000
- Principal to repay
- HK$100,000
You receive HK$1,000 less but still repay HK$100,000, so the real cost is higher than the flat rate alone suggests.
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This page is information, not investment, lending or tax advice.