Are quick loans good for financial emergencies?

A quick loan, or an urgent loan, refers to a type of loan offered by non-bank financial institutions within a short time as immediate financial assistance. Approval and cash withdrawal can be instant.

Generally speaking, any Hong Kong resident aged 18 or above can apply. You'll be able to access urgent cash loans by just providing your HKID card and bank account details. There's no need to provide income proof, address proof or guarantor contacts. These no-documentation lenders accept loan applications 24/7, including weekends and holidays. Once approved, you can withdraw cash on the same day, even within a few hours.

When faced with unexpected financial needs, some may go for the quickest loan option available, which can lead to hefty interest payments.

Money lenders are regulated by the Money Lenders Ordinance, which is more lenient than the Banking Ordinance. These institutes have lower credit requirements for borrowers, so it's easier and quicker to apply for loans with them than with banks.

Borrowing from a money lender requires minimal documentation and cash withdrawal can be done in just a few hours, making it high risk for both parties. To shift the risk to the borrower, money lenders often charge a higher annualised percentage rate (APR). The total interest you'll pay for the same loan amount will be significantly higher if you borrow from them!

Personal loans with a bank are secured and can get approved quickly. Many bank loans allow you to apply online 24/7 with an app and without visiting a branch. It can take just a few steps for eligible applicants. Simply provide your ID card, income proof or other documents as required. It's possible to get application results in just a minute and withdraw cash on the same day. Also, borrowing with a bank usually gives you a higher loan amount. With flexible repayment options and cash rebates, it's a more efficient option in the long run.

Applying for a loan is a solution to unexpected situations. However, beware of money lenders that charge high rates of interest. Remember to shop around and read the small print before applying for any loan product. It's better to opt for personal bank loans regulated by the Hong Kong Monetary Authority under the Banking Ordinance.

While quick loans can help you out of immediate financial difficulties, they may not be the best option for big-budget items. Also, you'll still have to repay your loans with interest, which can pile up quickly. Failing to catch up with repayments can lower your credit score. So, be careful not to overborrow. Developing good saving habits and managing your finances properly can improve your financial wellbeing, helping you achieve your financial goals in the long run.

To find out more about personal loans, feel free to call us on (852) 2748 8080, or apply online now.

To borrow or not to borrow? Borrow only if you can repay!