Hong Kong finance firm Yes Lady Finance has caused a global sensation by offering personal loans in exchange for ladies’ designer handbags. Yes, you heard right - a second-hand Birkin equals big bucks.
According to Reuters, Yes Lady Finance is providing loans of up to 70 percent of the value of the item in the second-hand market and charging borrowers interest as low as 28 percent a year with a three-month maturity.
A Louis Vuitton handbag valued at US$2,600 in the second-hand market would fetch a US$1,800 three-month loan, we read in an AFP report. This article also suggested owners would lose the bags if they failed to settle the debt on time.
Yes Lady Finance Co-founder, Wallace Tung, said the scheme was “a good fund-raising option for some tai-tais*.”
This is a surprising first for the personal-loan market. But we doubt the idea will be adopted in Australia any time soon.
*Tai-tais is a slang term for the wives of wealthy Hong Kong businessmen.