Exhibit 4.1

                                                      KBC Bank Hong Kong Branch
                                                            39/F, Central Plaza
                                                       16 Harbour Road, Wanchai
                                                                      Hong Kong

                                                       Telephone +852 2879 3388
                                                         Telefax +852 2879 3300
KBC Bank

Hong Kong Branch

23rd March, 2007

Bonso Electronics Limited
Unit 1106-1110, 11/F., Star House,
3 Salisbury Road, Tsimshatsui,
Kowloon

Attn: Ms. Pang Kit Teng, Cathy
Director of Finance

Dear Sirs,

Banking Facilities

KBC Bank N.V. (the "Bank") is pleased to set out below the revised terms and
conditions upon which the Bank will consider requests made by the borrower(s)
named in paragraph 1 of this letter (the "Borrower(s)" or each "Borrower") for
the following facilities (the "Facilities"). The terms set out in this letter
supersede and replace those set out in any of our banking facilities letters
previously sent to you.

1. Borrower(s).
   -----------

   Bonso Electronics Limited

2. Trade Facilities
   ----------------

     (a)  Total Facility Amount: HK$10,500,000.00 and EUR3,300,000.00 (Hong Kong
          Dollars Ten Million Five Hundred Thousand and EURO Three Million and
          Three Hundred Thousand Only) maximum but in no circumstances that the
          outstandings of any facility shall exceed the respective facility
          limits set out below.

     (b)  Purpose: For short term trade financing and general working capital
          requirements.

     (c)  Available for:

          Trade facilities                                     facility limit


          Line 1 with aggregate limit of:                    HK$10,000,000.00
                                                             ----------------

          (i) Commercial Letters of Credit ("L/C's"):

<PAGE>


Bonso Electronics Limited                                                   KBC
--------------------------

        Issuance of sight and/or up to 120 days usance
        commercial L/C's with or without title documents,
        L/C's with offshore shipment or L/C's calling for
        cargo receipt                                          HK$10,000,000.00
                                                               ----------------

   (ii) Documents against Payment ("D/P") and Documents
        against Acceptance ("D/A") Financing: Advances (with
        recourse to the Borrower(s)) against D/A and/or D/P
        bills at sight and/or with tenors of up to 120 days
        drawn on parties acceptable to the Bank up to
        HK$4,000,000.00 per each drawee.                       HK$10,000,000.00
                                                               ----------------

  (iii) Advances against Trust Receipts: Advances against
         Trust Receipts covering merchandise called for
         under:-

         (a)    import L/C's with tenor of up to 120 days,
                which shall include the usance period granted
                by supplier under the respective import L/C's
                HK$10, 000,000.00

         (b)   suppliers' invoices with tenor of up to 120
               days from date of advance with individual
               supplier
               limit of HKD4,000,000.00                       HK$10,000,000.00
                                                              -----------------

         (c) incoming D/P or D/A with tenor of up to 120
         days from date of advance                            HK$10,000,000.00
                                                              -----------------

         (iv) Skipping Guarantees: Issuance of Shipping
         Guarantees supported by Trust Receipts covering
         merchandise called for under import L/C's            HK$10,000,000.00
                                                              ----------------

         (v) Indemnities for Negotiation under L/C's:
         Indemnities for negotiation of documents (with or
         without discrepancies) drawn under export L/C's
         HK$10,000,000.00

         (vi) Advances Against Export Invoices: Advances with
         tenors of up to 120 days from bill of lading date for
         up to 100% of the net invoice amount of export
         invoices for customers approved by the Bank, with
         individual buyer limit of HKD4,000,00.00
         HK$10,000,000.00

         Line 2 with aggregate limit of:                          HK$500,000.00

         (vii) Overdrafts: Overdraft on HK$ current
         account(s) with the Bank. HK$500, 000.00
<PAGE>


Bonso Electronics Limited                                                   KBC
--------------------------


         Line 3 with aggregate limit of:                       EUR3,300,,000.00

                (viii) Standby Letters of Credit and Bank Guarantees:
                Issuance of Standby Letter of Credit or Bank
                Guarantees to KBC Bank Deutschland AG, Germany with
                tenors of up to 365 days to secure a trade facility
                to Korona Haushaltswaren GmbH & Co.; such payment
                undertakings must be in a form and supported by
                agreements o1 counter-indemnities
                acceptable to the Bank                         EUR3,300, 000.00
                                                               ----------------

                Special Conditions/Remarks

                (a) Total limit for facilities (i), (ii), (iii),
                (iv), (v) and (vi). together under Line 1 shall not
                exceed HK$10,000,000.00

                (b) The maximum tenor of any import facility shall
                not exceed 120 days which shall include the usance
                period granted by supplier under any import L/C's or
                incoming D/A

                (c) Available limit not utilized under Line 2 or Line
                3 can be shifted to Line 1 at the request of the
                Borrower(s)

3. Foreign Exchange and Derivatives Facility
   -----------------------------------------

           (a)    Same Day Settlement Limit: For foreign exchange
                  and derivative products same day settlements  EUR2, 000,000.00
                                                                ----------------

           (b)    Notional Amount: For booking of foreign exchange contracts and
                  derivatives products acceptable to the Bank, with maximum
                  tenor of 12 months. The notional limit stated in this letter
                  is for reference only and is subject to the Bank's acceptance
                  of the
                  relevant applications                         EUR 7,500,000.00
                                                                ----------------

4. Applications for Facilities
   ---------------------------
          (a)     No application made by the Borrower to use any of the
                  Facilities will be considered by the Bank unless the Bank has
                  received all of the documents listed in the Schedule hereto
                  each in form and substance satisfactory to the Bank.

          (b)     Each application made by the Borrower to use any of the
                  Facilities in whole or

<PAGE>


Bonso Electronics Limited                                                   KBC
--------------------------

                  in part shall be a request by the Borrower to the Bank to
                  extend financing on the terms and conditions set out or
                  referred to in this letter. No commitment by the Bank to
                  extend financing shall arise under this letter until any
                  application by the Borrower is accepted by the Bank either
                  expressly or by its extending such facilities to the Borrower.

           (c)     Such applications shall be made, where applicable, on the
                   Bank's standard forms and supported by such documentation
                   that the Bank may require.

           (d)     No application by the Borrower to use any of the Facilities
                   will be accepted by the Bank unless the Borrower complies
                   with the terms and conditions set out or referred to in this
                   letter and such other conditions as the Bank may impose from
                   time to time.

           (e)     Acceptance by the Bank in respect of any application made by
                   the Borrower is subject to the Bank's overriding right of
                   repayment on demand, amending, cancelling and/or
                   restructuring any of the Facilities and/or pricing at the
                   Bank's sole discretion

5. Currency:
   --------

          Borrowings in any currency are subject to availability of funds in
          that currency at the time the borrowings are requested.

6. Repayment
   ---------
                    (a) Repayment must be made in full on maturity of each
                        advance or on demand whichever occurs first.

                    (b) If there are more than one Borrower named in
                        paragraph I of this letter, each Borrower shall be
                        jointly and severally liable with the other
                        Borrower(s) for the repayment obligations under any
                        of the Facilities. Each Borrower further agrees that
                        the Bank is not required to make any reference to the
                        other Borrower(s) in relation to the utilitsation of
                        the Facilities by any Borrower.

7. Pricing
   -------
                  (a)   L/C issuance fee and commission in lieu of exchange:
                        US$50,000 or below                      : 1/4 %
                        Over US$50,000                          : 1/32%

                  (b)   Interest rates for import and export bills:

                   For all HK$ / US$ drawings
                   --------------------------
                   1.5% p.a. over HIBOR / LIBOR

                  (c)     Interest rates for Overdraft

<PAGE>


Bonso Electronics Limited                                              KBC
--------------------------

          (d) Standby Letters of Credit and/or Bank Guarantees issuance fee:

                   .8% pa.

         For any drawing unpaid at its maturity date, the Bank may, at its sole
         discretion, charge a default interest at maximum of Prime +6% p.a.

          ("Prime" means the best lending rate determined by the Bank from time
          to time.)

8. Security
   --------

          Unconditional continuing corporate guarantee executed by Bonso
          Electronics International Inc. (the "Corporate Guarantor") for the
          facilities amount plus accrued interest and recovery expenses.

9. Arrangement Fee
   ---------------

          HKD10,000.00 payable up-front which is non-refundable in any event.

10. Undertakings
    ------------

           (a) Submission of the following statements:

                  (i)     No later than 180 days after the end of each fiscal
                          year, the audited financial statements of the
                          Borrower(s) and the Corporate Guarantor(s), if any.

                  (ii)    No later than 90 days after the end of each half-year,
                          a certified copy of the unaudited financial statements
                          of the Borrower(s) and the Corporate Guarantor(s), if
                          any.

                  (iii)   Any other documents as requested by the Bank from time
                          to time.

11. Others
    ------

         The Facilities shall be subject to:

          (a)     the terms and conditions of the General Customer Agreement and
                  General Agreement-for Trade Financing executed and delivered
                  by the Borrower(s) to the Bank, and

          (b)     the terms and conditions set out in all other standard
                  agreements or documentation executed and delivered by the
                  Borrower(s) to the Bank and other banking facilities and
                  services provided by or continued by the Bank to the
                  Borrower(s).

<PAGE>


Bonso Electronics Limited                                                  KBC
--------------------------

12. Costs and Expenses:
    -------------------

          The Borrower(s) shall, upon demand by the Bank, indemnify the Bank
          against (a) all costs and expenses (including legal fees on a full
          indemnity basis) incurred by the Bank in connection with the
          negotiation, preparation, execution and enforcement of or the
          preservation of any of its rights under, this letter and any other
          documents referred to herein; and (b) all costs, losses or liabilities
          incurred by the Bank as a result of providing any part of the
          Facilities to the Borrower(s).

13. Assignment
    -----------

               (a)     The Borrower(s) may not assign any of its rights or
                       transfer any of its rights and/or obligations under this
                       letter.
               (b)     The Bank may assign any of its rights or transfer any of
                       its rights and/or obligations under this letter.

14. Governing Law
    -------------

      This letter is governed by and construed in accordance with the laws of
       the Hong Kong Special Administrative Region.

     Please confirm your agreement to the tents and conditions of this letter by
     signing and returning to us the enclosed duplicate copy of this letter at
     your earliest convenience.

      Yours faithfully,

      For and on behalf of KBC Bank N.V.


      /s/
         -------------------------------
     Authorised Signatories

     We confirm our agreement to the terms and conditions set out above.

         For and on behalf of


         /s/
             ---------------------------
         Bonso Electronics Ltd.
         (Borrower)

         For and on behalf of


         /s/
             --------------------------------
         Bonso Electronics International Inc.
         (Corporate Guarantor)

<PAGE>


Bonso Electronics Limited                                                    KBC
--------------------------

                                    Schedule
                                    --------

                           List of Required Documents
                           --------------------------

1.   Certified extracts of the board resolutions of the Borrower(s) and the
     Corporate Guarantor(s), if any, approving execution, delivery and
     performance of, and the terms of, the agreement and other documents
     required by the Bank evidencing the Facilities and the guarantee(s) (the
     "Facility Documents"), and authorizing named person or persons to sign
     those and any ancillary document.

2.   The duly executed Facility Documents including but not limited to the
     following:

     (a) ISDA Master Agreement and Schedule to the ISDA Master Agreement by the
     Borrower

3.   A copy of these Resolutions certified by the Chairman of the Meeting, any
     Director or the Secretary of the Company be delivered to the Bank.

4.   Signature specimen of the Authorized Persons:

          Name of the Authorized Persons

          So Hung Gun Anthony               /s/ So Hung Gun Anthony
                                            -----------------------

          Chung Kim Wah                     /s/ Chung Kim Wah
                                            -----------------------
          Pang Kit Tang                     /s/ Pang Kit Tang
                                            -----------------------

  It is hereby certified and confirmed that the above Resolutions: -

     (i)  have been duly entered in the minute book for meetings of the
          Directors of the Company and the minutes recording the above
          Resolutions have been signed by the Chairman of the Meeting;
     (ii) are still in fill force and effect in all respects;

     (iii) do not exceed the objects or powers of the Company or the powers of
          its Directors; and
     (iv) the specimen signature(s) set out in paragraph 4 above is (are) the
          true signature(s) of the Authorized Person(s).

/s/ So Hung Gun, Anthony
------------------------
Chairman of the Meeting                     Date:     March 27, 2007
                                            ------------------------

Name: So Hung Gun,Anthony
      -------------------
     (please print)