Exhibit 4.2


                                                                        Standard
                                                                       Chartered
Date; 6th June 2007

Our Ref: CR/LC/TEAM4/BKA



CONFIDENTIAL

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

Attn. Mr. Anthony So/Ms Cathy Pang
----------------------------------


Dear Sirs,


BANKING FACILITIES

     Standard Chartered Bank (Hong Kong) Limited ItJft () "jEJ (the "Bank") is
pleased to offer the following banking facilities (the "Facilities") to the
Customer below for the purpose(s) of general working capital, trade finance and
treasury requirement, subject to the Bank's Standard Terms and Conditions for
Banking Facilities and Services (including the Trade Finance Supplement) and
Terms and Conditions for Foreign Exchange Business attached and the terms and
conditions set out in this facility letter.


A. CUSTOMER:

     Bonso Electronics Limited


B;- FACILITY LIMITS:

     (1) General Banking Facilities
<TABLE>
<CAPTION>

  -------------------------------------------------------------------------------------
  Type(s) of Facility                 Facility Limit(s)    Designated Customer(s) and
                                                           Sub-limit(s), if applicable
  -------------------------------------------------------------------------------------
<S>                                      <C>
  1. Current Account Overdraft        HKD3000,000.-        o The Customer
  -------------------------------------------------------------------------------------
  2. Trade Finance                    HKD55,000,000.-      -
  (Please refer to Appendix I for
  product details.)
  -------------------------------------------------------------------------------------
  (a) Trade Finance Group All                              o The Customer
                                                           (HKD55, 000,000.-)
  -------------------------------------------------------------------------------------
  (b) Trade Finance Group I                                o The Customer
                                                           (HI0551 000, 000.-)
  -------------------------------------------------------------------------------------
  (c) Trade Finance Group 2                                o The Customer
                                                           (HKD65,000,000.-)
  -------------------------------------------------------------------------------------

Standard Chartered Bank (Hong Kong) Limited
Wholesale Bank
<PAGE>


                                                                          Page 2

  Bonso Electronics Limited


 o (d) Trade Finance Group 3                                    The Customer
                                                               HKD55, 000,000.-)
  ------------------------------------------------------------------------------
 3.                          Factoring HKD20,000,000.-         o The Customer
                            (being FlU Limit)
  ------------------------------------------------------------------------------
 Total Facility Limit:       HKD78,000,000..-
  ------------------------------------------------------------------------------
 Note:-
 o The aggregate outstanding of all Sub-limits shall not at any time exceed the
 Facility Limit of that Facility and the Total Facility Limit
 -------------------------------------------------------------------------------

       o       (2) Treasury Facilities (The Bank may arrange for these
               facilities to be available through Standard Chartered Bank or
               other members of the Standard Chartered Group and separate
               documentation would be executed where necessary.)

 ---------------------------------------------------------------------
Type(s) of Facility                                   Designated Customer(s) and
                                                      Sub-limit(s) if applicable
 -------------------------------------------------------------------------------
 1. Foreign Exchange Contract(s)                      The Customer
 (Spot)
 Facility Limit to be determined by the Bank on
 a case by case basis.
 ------------------------------------------------------------------------------
 2. Currency and Interest Rate Risk Management        The Customer
 ------------------------------------------------------------------------------


C. PRICING AND CONDITIONS:

 ------------------------------------- ---------------------------------------------------------------------
 1. Current Account Overdraft          Interest: the higher of Prime or HIBOR, payable monthly in
                                       arrears.
 ------------------------------------- ---------------------------------------------------------------------
 2. Trade Finance Interest:
 -                                     HKD import/export facilities: 1.5% per annum over HIBOR.
                                       Foreign currency import/export facilities: 1.5% per annum over
                                       LIBOR.
                                       Commission:
                                       Standard rates unless otherwise stipulated.

                                       Letters of Credit Opening Commission & Commission in lieu of
                                       ---------------------------------------------------------------------
                                       Exchange
                                       First USD50,000.- 1/4%
                                       Balance           1/8%

                                       Commission on other Trade Finance Facilities
                                       Import Invoice Financing       1/8%  flat (minimum HKD400)
                                       Export Invoice Discounting     1/8% flat (minimum HKD400)

                                       Maximum tenor/advance percentage for:
                                       Import facilities: Combined usance and
                                       import loan period of any transaction is
                                       not to exceed 120 days.

                                       Export facilities 60 days
 -----------------------------------------------------------------------------------------------------------



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                                                                                                      Page 3

  Bonso Electronics Limited

  ------------------------------------ ----------------------------------------------------------------------
                                       Packing Credit: up to 90 days or expiry of the letter of credit,
                                       whichever is earlier, and up to 70% of the amount of the letter of
                                       credit.

                                       Discounting of "Documents Against Acceptance" ("D/A") is only
                                       available to  the approved drawee by the Bank:

                                       Import Invoice Financing: allowed up to a maximum limit of
                                       HKD35,000,000.- for a tenor of 120 days up to 100% finance
                                       against presentation of certified true copy of invoice issued by
                                       suppliers approved by the Bank. Individual limit for any new suppliers
                                       to be approved by the Bank from time to time.

                                       Export Invoice Discounting: allowed up to 60 days, and up to 100% of
                                       the invoice amount.
  ------------------------------------ ----------------------------------------------------------------------
  3.                                   Factoring Subject to terms and conditions stipulated in the
                                       Receivables Purchase Agreement executed between the Bank and the
                                       Customer.

   ------------------------------------ ---------------------------------------------------------------------
  4. Foreign Exchange                  Tenor up to 2 days. Contract(s)
  (Spot)

  ------------------------------------ ----------------------------------------------------------------------
  5. Currency and Interest Rate        Tenor up to 18 months.
  Risk Management

  Handling Fee of Facilities:          HKD10,000. - payable upon your signing of this letter, and other
                                       handling fed to be mutually agreed and payable on each anniversary of
                                       the date of this letter if the Facilities are continuinq.

  ------------------------------------ ----------------------------------------------------------------------
</TABLE>

D.      SECURITY AND CONDITIONS PRECEDENT:

The availability of the Facilities is conditional upon the Bank's
holding/receipt of the following documents, items and evidence (both in form and
substance) satisfactory to the Bank:

1.   This letter duly executed by the Customer.
2.   A corporate guarantee executed by Bonso Electronics International Inc. for
     an unlimited amount.
3.   A Receivables Purchase Agreement executed by the Customer for the factoring
     facility.
4.   Original/Certified copies of all necessary consents, approvals and other
     authorisations (including board resolutions) in connection with the
     execution, delivery and performance of this letter and all other documents
     mentioned above, if applicable.
5.   (if any of the facilities referred to in this letter are to be made
     available by Standard Chartered Bank or other members of the Standard
     Chartered Group) All such documents, items or evidence with, in favour of
     or to Standard Chartered Bank or, as the case may be, such member of the
     Standard Chartered Group as the Bank may request.
6.   Such other documents, items or evidence that the Bank may request from time
     to time.



<PAGE>


Bonso Electronics Limited                                                Page 4

E.      COVENANTS AND UNDERTAKINGS:

The Customer undertakes to the Bank that it will:

1.   ensure loan from Bonso Electronics International Inc. (being its holding
     company) at not less than HKD40,000,000.- at all times.

2.   promptly submit to the Bank:

           certified copy of the audited financial statements of the Customer
           and Bonso Electronics International Inc. within g months after their
           respective financial year end; a certified copy of the quarterly
           financial statements of Bonso Electronics International Inc. within 3
           months after the end of the releiant accounting period; and other
           information that the Bank may request from time to time.

3.   immediately inform the Bank:

     o    of any change of the Customer's directors or beneficial shareholders
          of amendment to its memorandum or articles of association or
          equivalent constitutional documents;
     o    of any substantial change to the general nature of the Customer's
          existing business; or
     o    if it becomes, or is aware that any of its directors, shareholders,
          partners or managers becomes, a Related Person (as defined in
          paragraph 5 of section F of this letter).

F.  OTHER TERMS AND CONDITIONS:

1.   The Facilities are available at the sole discretion of the Bank. The Bank
     may at any time immediately terminate, cancel or suspend the Facilities or
     otherwise modify the Facilities without the consent of any party.

2.   Notwithstanding any provisions stated in this letter, the Facilities
     (except for the factoring facility) are repayable on demand by the Bank.
     The Bank has the overriding right at any time to require immediate payment
     and/or cash collateralisation of all or any sums actually or contingently
     owing to it under the Facilities (except for the factoring facility).

3.   The Bank's Standard Terms and Conditions for Banking Facilities and
     Services (including the Trade Finance Supplement) and Terms and Conditions
     for Foreign Exchange Business ("Standard Terms and Conditions") attached
     and/or referred to in this letter forms an integral part of this letter and
     the Customer agrees to observe and be bound by such Standard Terms and
     Conditions.

4.   The terms and conditions set out or referred to in this letter supersede
     and replace those set out in our letter (if any) previously sent to the
     Customer.

5.   Please note that section 83 of the Banking Ordinance imposes on the Bank
     certain limitations on advances to persons (including firms, partnerships
     and companies) related to its directors, employees with lending authority
     or controllers (each person so related shall be referred to as a "Related
     Person"). When acknowledging and accepting this facility letter, the
     Customer should advise the Bank if it is, or any of its directors,
     shareholders, partners or managers is, a Related Person within the meaning
     of the Banking Ordinance. If.subsequent to the acceptance of this facility
     letter, the Customer becomes, or is aware that any of its directors,
     shareholders, partners or managers is or becomes, a Related Person, it
     should immediately advise the Bank in writing.


<PAGE>

                                                                          Page 5

Bonso Electronics Limited

6. The Customer acknowledges the following:

       (a)   The Customer has received and read the Bank's Notice to Customers
             and Other Individuals relating to the Personal Data (Privacy)
             Ordinance (the "Ordinance') and the Code of Practice on Consumer
             Credit Data (the "Notice"); and

       (b)   The Customer has, or will, notify each of its Relevant Individuals,
             the Bank may, in the course of providing banking services to the
             Customer, receive Customer information in respect of that Relevant
             Individual.

       For the purpose of the above, the Ordinance defines a Relevant Individual
       as being one of the following (but not limited to) Chief Executive
       Officer, Chief Financial Officer, Chief Operating Officer, department
       heads, corporate officers (e.g. authorized signatories, company secretary
       etc.), directors, major shareholders, beneficial owners, and guarantors
       (where applicable).

7. This letter shall be governed by and construed in accordance with the laws
of Hong Kong SAR.

  Please sign and return to us the enclosed copy of this letter together with
  the attached Standard Terms and Conditions for Banking Facilities and Services
  (including the Trade Finance Supplement) and Terms and Conditions for Foreign
  Exchange Business to the Bank's Credit Risk Control at 11th Floor, Standard
  Chartered Tower, 368 Kwup Tong Road, Kwun Tong, Kowloon within one month after
  the date of this letter, failing which this offer shall lapse..

  If you have any queries, please feel free to contact any of the following
persons:-

  ------------------------------------------------------------------------------
  Queries on                    Name                               Telephone No.
   -----------------------------------------------------------------------------
  Execution of bank documents   Ms. Kane Leung,                        2282-6193
                                Senior Credit Documentation Manager

  Banking arrangements .        Ms. Sandra Mak, Relationship Manager   2821-1876
  ------------------------------------------------------------------------------

Yours faithfully,
For and on behalf of
STANDARD CHARTERED BANK (HONG KONG) LIMITED


/s/ Karie Leung
---------------
Karie Leung
Senior Credit Documentation Manager
KL/EW/wy
Encl.

We agree and accept all the terms and conditions set out above and the Bank's
Standard Terms and Conditions for Banking Facilities and Services (including the
Trade Finance Supplement) and Terms and Conditions for Foreign Exchange Business
attached andlor referred to in this letter, which we have read and understood.

For and on behalf of
BONSO ELECTRONICS LIMITED


--------------------------------
<PAGE>


                                                                          Page 6

Bonso Electronics Limited


                                   Appendix 1
TRADE FINANCE FACILITY'
Trade Finance Group All
-----------------------

     Negotiation of export credit documents with discrepancies on a with
recourse basis

Trade Finance Group 1
---------------------

o    Purchase of documents against payment bills with title documents on parties
     acceptable to the Bank on a with recourse basis
o    Purchase of documents against acceptance bills with ECA/approved insurance
     cover on a with recourse basis
o    Issuance of back-to-back letters of credit
o    Issuance of import letters of credit - sight and usance
                                         --  with title documents

Trade Finance Group 2
---------------------

o    Purchase of documents against acceptance bills without ECA/approved
     insurance cover on a with recourse basis
o    Purchase of documents against payment bills without title documents on
     parties acceptable to the Bank on a with recourse basis
o    Issuance of quasi back-to-back letters of credit -without title documents
     (i.e. Import letter of credit supported by export letter of credit
     acceptable to the Bank)
o    Issuance of import letters of credit - sight and usance
                                         -- without title documents
o    Shipping guarantees

Trade Finance Group 3
---------------------

o    Pre-shipment loan - i.e. packing credit
o    Acceptance of drafts under import letters of credit
o    Release of documents against acceptance supported by trust receipts
o    Loans against trust receipts
o    Import loans
o    Import Invoice Financing / Export Invoice Discounting