Even before the pandemic of 2020, people were already shifting their preference towards handling everything they possibly could on the Internet. It’s far more convenient, because whether won’t be an issue, travel will be an issue, nor will you have to wait in lines and pretend to be friendly. It’s just easier to do things over the Internet where possible.
It’s also a lot more practical since the advent of far more secure website transactions and overall cyber security, meaning that a lot of formerly sensitive and risky things can be safely handled over the Internet, provided you’ve been smart with your computer zone protection. So yes, you can get a personal loan online, or even get a pre-approved personal loan through certain services.
These days, not only is it more convenient, but it safer. Having recently had to go into a bank for anything, you’ve seen what a pain and already tedious errand is with these new occupancy capacity roles lining people up all the way outside and around the building during the cold winter months. It’s dangerous to get too close to people right now, and we all legitimately should be avoiding physical social interaction as much as we can.
But, you have to be careful.
Read the fine print!
While it is safer in the more traditional sense thanks to modern Internet security, and safer during a pandemic, the Internet is dangerous in a whole other way. It can be likened to an old bazaar where every huckster in the world is trying to get you for everything they can. When you go to a personal loan online, they will promise you the world. They will tell you that they don’t care about poor credit, they’ll tell you that they don’t care if you have a bad record, etc. However, despite them seeming to have a low interest rate on the initial sales page, read the fine print.
If they don’t have an itemized list of expenses that you’re actually paying, that’s an immediate indication that you should bail out. If they do provide this itemized list, which in most cases they are legally obligated to do, add up what you’re actually having to pay per month. Look for increases in your interest rate over time, and look at how much their trumping things up with various intangible service fees.
In places like Hong Kong, where regulations are more lax than they really ought to be with this sort of thing, this is actually even more rampant. For such a developed part of the world, there are some of the loosest regulations here and in other similar autonomous zones like Macau and Singapore.
This is actually incompetence on these governments’ parts, but an economic choice because they can be tax havens for outside companies. The somewhat higher quality of life for people in these autonomous regions compared to other nations is thanks to this, but it means that every con artist in the world can fly their sign high without fear of much retribution, as long as they don’t get carried away.
Look for specialism.
When looking for a pre-approved personal loan, look for one that actually specializes in the type of personal loan you might need. Some services specialize in loans for specific purposes, such as mortgage loans, loans to purchase vehicles, loans to do work on your home, etc. These are more specifically tailored to the types of expenses and times to pay off these loans, and may actually be somewhat fair due to people in the industries to which this money will go having weighed in on them.
At the end of the day, though, if you don’t have a particularly great credit score or some sort of significant collateral, you’re going to have to deal with somewhat high interest rates, especially in Hong Kong. This doesn’t mean you should name for the lowest one you can find, and as we said above, you should read closely the fine print, especially if you’re doing this through a website. But, in this economic climate, it’s still going to hurt a little.