Many Hong Kong international schools require an interest-free loan to the school's capital fund as a condition of enrolment or priority admission. Debentures are typically refundable at the end of the child's enrolment, with no interest.
What debentures are
Many Hong Kong international schools require an interest-free loan to the school's capital fund as a condition of enrolment or priority admission. Debentures are typically refundable at the end of the child's enrolment, with no interest.
Amounts
Debenture amounts at major Hong Kong international schools range from HKD 200,000 to HKD 1 million per child. ESF (English Schools Foundation) does not require debentures. Several premium private schools (Harrow Hong Kong, Kellett, ICS) operate debenture systems.
Refundability
Most debentures are refundable upon the child leaving the school, typically within 6 months of departure. Terms vary; verify before depositing. Some schools offer corporate debentures purchased by employers.
Tax and currency considerations
Debentures are not tax deductible. Currency exposure on the debenture (held in HKD typically) is a real factor for families paid in other currencies.
Related
See Hong Kong city guide.