RM500 Instant Loan Using IC in Malaysia

Imagine you’re mid-month with payday still far away when your car suddenly breaks down or your child develops a fever and needs immediate treatment. In such situations, an instant RM500 loan acts as a financial lifeline. In 2026, Malaysia continues to face rising living costs; industry reports show consumers turning to credit cards, personal loans and digital financial products because of fuel subsidy cuts and rising prices of basic goods. These small loans allow people to cover unexpected expenses without compromising basic needs.

An RM500 loan also helps in situations such as:

1. Emergency expenses – for example, clinic treatment costs, vehicle repairs, or fixing a leaking roof.
2. Cash‑flow bridge – covering daily needs until the next paycheque, especially for gig workers or small traders.
3. Settling overdue bills – avoiding late‑payment penalties for utilities, rent or school fees.

With e‑wallet penetration reaching 94 percent in the last quarter of 2024 and the emergence of digital banks such as GXBank, Aeon Bank and Boost Bank, micro‑loans via mobile apps have become a quick and convenient option, making them relevant for middle‑aged people who want instant access without bureaucracy.

Emergency uses and expenses

There are several practical scenarios where a small loan makes a big impact:

• Immediate medical treatment – For example, Pak Hassan, a 45‑year‑old lorry driver, suffered food poisoning and needed urgent treatment at a private clinic. A licensed RM500 loan allowed him to pay the bill and return to work without disturbing his savings.
• Home repairs – Puan Rohani, 50, faced a leaking pipe that affected her house. The immediate repair cost of RM400 was paid using a RM500 loan, and the remainder was used to purchase kitchen essentials.
• School‑fee payments – Teacher Zainal, a primary‑school teacher, used a micro‑loan to pay his child’s tuition fees before receiving his monthly salary.

To ensure the loan is used wisely, try practising two tips:

1. Assess repayment ability – calculate the instalment amount and make sure it does not exceed 10–20 percent of your monthly income. An unplanned small loan can lead to a debt cycle.
2. Set up an emergency fund – although the loan helps, try to create an emergency fund of at least three months’ salary to reduce reliance on instant loans. Small, consistent savings provide peace of mind when facing unexpected costs.

In the digital era, an online RM500 instant loan allows users to apply through a portal or app without visiting an office; however, ensure the source is legitimate.

Risks of RM500 Instant Loans and regulations

Micro‑loans are often associated with high interest rates because the amounts are small but administrative costs are similar to those of larger loans. If borrowers are not careful, they can become trapped in a continuous debt cycle. In addition, the presence of unlicensed lenders (loan sharks) adds the risk of fraud and extortion. Many advertisements highlight a “RM500 instant loan using an IC” as an easy solution, but this phrase is often used to lure borrowers into illegal schemes.

Regulatory standards in Malaysia are set through the Moneylenders Act 1951 (Act 400) under the supervision of the Ministry of Housing and Local Government (KPKT). Licensed moneylenders are bound to a maximum interest rate of 12 percent per year for secured loans and 18 percent per year for unsecured loans. These regulations aim to protect consumers from excessive charges, but some companies impose administrative fees, stamp duties or notary fees that increase the overall cost.

High interest rates and hidden charges

Interest rates for RM500 instant loans vary by provider. ACOM Malaysia charges a fixed rate of around 18 percent per year with terms of 6 to 60 months and stamp duty of about RM5 and a verification fee of RM10. GOpinjam (a CIMB e‑Zi Tunai product via the TNG eWallet) offers effective rates between 8 and 36 percent per year with no processing fee; terms range from one week to one year. Emicro charges a flat rate of 18 percent per year and requires a processing fee of RM60 to RM400 depending on the loan amount. Wavpay Credit offers rates of 12 percent per year for secured loans and 18 percent per year for unsecured loans.

Besides the interest rate, borrowers need to watch out for hidden charges such as identity‑verification fees (e‑KYC), stamp duty (usually 0.5 percent of the loan amount), late‑payment penalties (between 1 and 8 percent of the outstanding balance) and early‑termination fees. Avoid borrowing from parties that ask for an advance deposit or for your ATM card as collateral; this is a sign of an illegal lender.

In addition, the high interest rates charged by licensed moneylenders do not include late‑payment penalties. When borrowers fail to pay instalments on time, these penalties can compound, causing the debt to grow quickly. According to expert advice, late‑payment penalties can reach 8 percent of the outstanding balance. Therefore, borrowers should ensure they follow the payment schedule with discipline. Understanding the long‑term effects of compound interest — where interest is added to the balance each month — highlights the importance of settling the loan as soon as possible.

In the regulatory context, Bank Negara Malaysia (BNM) and the Malaysian Cooperative Commission (SKM) also play roles in ensuring the sustainability of the financial system. BNM has launched a “Responsible Financing” framework that requires financial institutions to assess borrowers’ ability based on the debt‑service ratio (DSR) before approving loans. Although this framework applies more to banks and cooperatives, the same concept can be used by individuals to assess whether an RM500 loan is appropriate given existing debt burdens. If the DSR exceeds 60 percent, adding a small loan could push you into unnecessary financial stress.

Applicant eligibility

Each provider sets eligibility conditions to ensure borrowers can repay. Here are general guidelines:

• Age: Most lenders require applicants to be between 18 and 60 years old. ACOM sets the limit at 18–60, while Emicro restricts applicants to 21–50.
• Income: GOpinjam requires a minimum income of RM800 per month, while ACOM accepts applicants with a gross salary of at least RM500 per month. Emicro requires a minimum annual income of RM18,000 (RM1,500 per month).
• Employment status: Most companies favour salaried employees. Emicro does not accept government employees (police and military), e‑hailing drivers, factory workers, lorry drivers or commission‑based workers. ACOM requires applicants to have worked at least two months with their current employer.
• Credit record: Applicants must not be blacklisted by CCRIS or CTOS and must not be bankrupt. Direct Lending emphasises checking i‑KrediKom to verify the lender’s licence.

To ensure you qualify for a loan, your credit record must be clean. CCRIS (Central Credit Reference Information System) is overseen by BNM and collects loan information from licensed financial institutions. CTOS is a private credit‑reporting agency that collects data from public sources such as courts and utility companies. Both reports are used by lenders to assess your risk. If you have arrears, consider settling outstanding debts or restructuring payments before applying for a new loan.

You can obtain a copy of your CTOS report free once a year via their official website. Reviewing your credit report helps identify errors or signs of identity theft. If there are inaccuracies, you can apply for corrections. Knowing your credit score also enables you to plan appropriate loans and avoid surprises during the application process.

Application process and documents

With technological advances, the loan application process is now mostly digital. GOpinjam, BigPay and Tambadana provide apps or online portals that allow applications to be submitted quickly, using e‑KYC verification and digital signatures. For example, Tambadana uses One‑Time Password (OTP) technology and e‑KYC approved by KPKT to protect personal data. In digital applications, documents such as pay slips, EPF statements or the BE tax form can be uploaded through the app.

Conversely, manual applications through cooperatives or company branches require physical presence, a copy of your identity card, pay slips, an employer confirmation letter, and a signature in front of a commissioner for oaths. Manual methods often take longer (3–5 days) compared with digital applications, which can be approved within a few hours to 1–3 working days.

E‑KYC involves facial recognition, OCR (Optical Character Recognition) to read identity‑card details, and checking fraud databases. The transmitted data is encrypted and stored in accordance with the Personal Data Protection Act (PDPA). Make sure you use a secure internet connection when uploading documents. Digital signatures comply with the Digital Signature Act 1997, which gives legal recognition to electronic documents. This reduces the need for physical presence and accelerates the process.

Providers and platforms for RM500 Instant Loans

Before applying for a loan, ensure the provider is registered with KPKT and holds a valid licence. Check the i‑KrediKom website to verify the licence status before submitting personal information. Below are some popular providers in 2026:

ACOM Malaysia

ACOM offers personal loans from RM500 to RM100,000 with terms of 6 to 60 months and a fixed interest rate of around 18 percent per year. Fees include stamp duty (RM5) and a commissioner of oaths fee (RM10). Applicants must be aged 18–60, earn a minimum of RM500 per month and have worked at least two months at their current employer. ACOM processes applications within 1–3 working days, and money will be transferred to the bank account once documents are complete.

GOpinjam (Touch ‘n Go eWallet)

GOpinjam is a micro‑loan facility offered through the Touch ‘n Go eWallet in partnership with CIMB Bank. Users can borrow between RM100 and RM10,000 without a processing fee, with flexible terms from 1 week to 1 year. Effective rates range between 8 and 36 percent per year depending on the amount and term. Applicants must be Malaysian citizens aged 21–63 with a minimum income of RM800 per month. Supporting documents (pay slips, EPF statements or tax forms) need to be uploaded, and approval takes around three working days; funds are credited to the eWallet or a CIMB account in real time. A 1 percent late‑payment charge is imposed on overdue instalments.

Emicro

Emicro provides loans from RM500 to RM10,000 with terms of 3 to 24 months. The flat interest rate is 18 percent per year. The processing fee depends on the loan amount (between RM60 and RM400) and stamp duty is included. Applicants must be aged 21–50 with an annual income of at least RM18,000 (RM1,500 per month), not be blacklisted by CTOS/CCRIS and have no court cases. Eligibility is not extended to government employees (police and military), e‑hailing drivers, factory workers or commission‑based workers. Applications are made online, and funds are channelled within six hours to a CIMB account.

Tambadana

Tambadana offers online personal loans of up to RM10,000 using only a MyKad. Applicants must be aged 21–60, be Malaysian citizens or permanent residents, and have a job or stable source of income. This platform uses OTP and e‑KYC to ensure data security, complies with KPKT regulations and is approved as a licensed moneylender. The application process is simple, a response is received within five minutes, and funds are transferred within 24 hours.

Tambadana also provides brief financial‑consulting services, helping borrowers plan payments and avoid default. Although not yet as large as a digital bank, platforms like Tambadana contribute to financial inclusion by providing access for those without a bank credit record.

Amanah Ikhtiar Malaysia (AIM)

AIM is a micro‑credit institution well known in Malaysia, especially to low‑income groups and women entrepreneurs. Financing programmes such as the Ikhtiar Loan Scheme provide micro‑loans without collateral to start or expand small businesses. Although the loan amounts exceed RM500, the concept is similar: providing immediate access to capital. AIM usually charges low service fees and provides guidance, making it a legitimate and customer‑friendly alternative. According to a report by Astro Awani, the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) plans to accelerate loan approval for agencies like AIM to five working days.

Besides loans, AIM implements financial‑literacy and entrepreneurship‑guidance programmes. Participants are asked to attend business training and weekly group meetings. This group structure ensures social accountability, where members support each other to ensure repayment. Such social‑financing models have successfully increased the incomes of low‑income families and reduced dependence on moneylenders.

TCM Loan

TCM Loan is a licensed lending company that offers micro‑loans and small‑business financing. Although specific information is difficult to obtain, customers must ensure the company holds a KPKT licence and check reviews and background before applying. Interest rates usually align with the 12–18 percent annual limit for secured and unsecured loans.

Direct Lending

Direct Lending functions as a platform that matches users with licensed lenders. According to their blog, borrowers can obtain loans as small as RM500 up to RM20,000 with terms of three months to four years. The company stresses that licensed lenders are forbidden to collect advance fees or ask for ATM cards; any such request is a sign of fraud. The blog also lists banks and cooperatives with low rates such as MBSB Bank (2.97 percent per year) and Public Islamic Bank (3.88 percent per year), showing that for larger loans, banks or cooperatives may be cheaper.

Direct Lending also hosts a loan calculator and financial‑education blog that helps borrowers understand concepts such as the DSR and interest calculations. They advise borrowers to review various offers and not rush decisions. This platform is an example of how technology can be combined with education to improve financial literacy.

Cooperatives/Community Credit

Workers’ cooperatives and community‑credit institutions are popular choices for government and GLC staff because instalments are deducted directly from salary through ANGKASA. Interest rates are usually lower (4–9 percent per year) compared with those of moneylenders, and the repayment period can be up to ten years. However, the minimum loan usually starts at RM1,000 or RM2,000, making it less suitable for urgent RM500 needs. Check the cooperative’s membership conditions and ensure the 60 percent salary‑deduction limit is not exceeded.

Amanahkredit

Amanahkredit is an instant online cash‑loan service with amounts up to RM5,000. Digital application: choose the amount, fill out the form, upload your IC and bank information, wait a few hours for a decision, and the money is transferred directly to your account when approved. This platform emphasises data security; payments include service charges, and the approved amount may differ. All operations are conducted via phone or computer, saving time since there is no need to be physically present.

Applicants must be Malaysian citizens aged at least 21 with a steady income; only essential information is requested and no collateral is required. This loan suits urgent needs, but borrowers are advised to assess their repayment capacity.

SpeedyAid

SpeedyAid offers mobile loans via a four‑step process: register, enter information, wait for approval and receive funds in your bank account. Their website emphasises data security and real‑time monitoring to prevent fraud. Eligibility requirements include being at least 18 years old, having a valid IC, bank card and mobile phone/email. Although interest‑rate information is not disclosed openly, users are advised to read the contract carefully.

Wavpay Credit

Wavpay Credit highlights the convenience of applying through the app and warns of scam syndicates. The official site states interest rates of 12 percent per year for secured loans and 18 percent per year for unsecured loans. Agreements must be signed at the company’s registered address, and the company holds a valid licence (advertising permit valid until 2026). This shows a commitment to regulatory compliance.

Digital platforms and fintech: GOpinjam, BigPay, AIM, cooperatives

Current trends show increased use of digital platforms. Data for 2024 indicates 94 percent e‑wallet penetration and 93 percent awareness of digital banks. Fintech such as BigPay, GOpinjam and cooperative apps target middle‑aged users who want efficiency and quick approvals. BigPay has introduced sharia‑compliant personal financing, “InstaCash”, up to RM50,000 with rates as low as 7.60 percent per year through cooperation with Bank Rakyat. This shows new competition for traditional lenders and offers consumers more choices.

Trend 2026: BNPL, Digital Banks and the gig economy

Market reports indicate rapid growth of Buy Now Pay Later (BNPL) services in Malaysia, with e‑wallet penetration exceeding 94 percent. Demand for RM500 instant online loans is increasing alongside the development of e‑wallets and digital banks. BNPL allows users to buy goods and pay later without interest over a short period. Although not a traditional RM500 loan, BNPL can be an alternative for small purchases, but it needs to be managed carefully because late penalties can be high. For example, e‑commerce platform Lazada offers Aspirasi CashNow with amounts from RM500 to RM2,500 and micro‑insurance protection, demonstrating the integration of finance with e‑commerce.

Digital banks such as GXBank, AEON Bank and Boost Bank, which obtained licences in 2022–2023, launched apps in 2024–2025. They focus on young customers and the gig economy with micro‑financing, savings and micro‑insurance products. Most digital banks offer competitive rates (4–8 percent per year) for micro‑loans and integration with e‑wallets. Middle‑aged users can benefit because the process is easy and transparent, but they should ensure the bank is officially listed under BNM.

Applying through e‑Wallet / BigPay

1. BigPay:
   • Download the BigPay app and register an account. Verify your identity via e‑KYC (take a photo of your ID card and a selfie).
   • Select the “Loans” or “InstaCash” menu and enter the amount RM500. BigPay offers loan amounts between RM1,000 and RM5,000 at around 8 percent per year with terms of 6, 9 or 12 months.
   • Check eligibility. Although BigPay does not require a pay slip, they assess transaction history in the app. Approval can be as fast as five minutes.
   • Sign the digital agreement and wait for the funds to be credited to your BigPay account. A 0.05 percent stamp duty is charged.
2. Touch ‘n Go (GOpinjam):
   • Open the TNG eWallet app and select GOpinjam.
   • Enter the loan amount (RM100 to RM10,000) and the financing term (1 week to 12 months). Make sure you understand the displayed interest rates.
   • Complete e‑KYC by uploading your identity card and income documents (pay slip, KWSP statement or BE tax form).
   • Once approved (about three working days), confirm via PIN; funds will be credited immediately to the eWallet or CIMB account.

Both platforms are user‑friendly and offer notifications at each step. Make sure you read the terms and conditions and clarify any hidden fees before confirming.

Urgent personal financing and regular RM500 loans

Instant loans and traditional micro‑loans differ in terms of process, cost and purpose. The following table compares the two:

Criteria	Urgent loan (RM500 Instant)	Regular micro‑loan
Main purpose	To cover emergency needs such as medical bills, car repairs or paying overdue bills.	To finance small businesses, purchase equipment, education or long‑term plans.
Loan amount	RM100–RM1,000; focus on RM500 with a short term.	RM1,000–RM20,000 or more with a longer term.
Interest rate	High (8–36 percent per year) because of small amounts and higher risk.	Lower (4–12 percent per year), especially if through banks or cooperatives.
Repayment period	One week to 12 months; usually three months.	Six months to five years.
Documentation	Minimal; e‑KYC, ID card, proof of income.	Requires pay slips, bank statements, EPF statements, employer confirmation letters.
Approval process	Fast – as early as five minutes to three working days.	Longer; three to seven days or more, depending on credit assessment.
Advantages	Quick, easy, suitable for emergencies.	Lower interest rates, larger amounts, suitable for long‑term planning.
Disadvantages	High interest rates, risk of falling into debt, potential fraud.	Complex process, requires complete documentation, may require a guarantor.

This table shows that urgent loans are suitable for emergency situations but should be used in a controlled manner. For long‑term financial planning, regular micro‑loans or bank loans may be more economical.

Loans without documents and using only an IC

Some providers promote “no‑document” or “IC‑only” loans to attract borrowers. Although tempting, these loans often come with high risks:

The phrase “RM500 instant loan using IC” often appears in advertisements, but you need to ensure the advertiser is registered, because such offers may be illegal.

• Fraud: Unlicensed lenders may take advantage by asking for advance payments or ATM‑card information. According to Direct Lending guidelines, licensed lenders are prohibited from requesting advance payments or handing over ATM cards.
• Exorbitant interest rates: Without documentation and proper credit assessment, companies may charge rates exceeding regulatory limits.
• Identity risk: Borrowing using only an identity card without supporting documents opens the door to identity theft or data misuse.

If you choose a no‑document loan, ensure the provider is registered with KPKT and read the contract terms carefully. Use the i‑KrediKom portal to check the licence.

Interest rates, charges and repayment schedules

The table below compares interest rates, loan ranges and terms, and example monthly instalments for a RM500 loan over three months for several providers:

Provider	Interest rate (per year)	Loan range & term	Example monthly instalment (RM500/3 months)
ACOM Malaysia	18 %	RM500–100,000 / 6–60 months	RM174.17
GOpinjam (TNG eWallet)	8–36 %	RM100–10,000 / 1 week–1 year	RM170.00
Emicro	18 %	RM500–10,000 / 3–24 months	RM174.17
Tambadana	18 %*	RM100–10,000 / 6–24 months	RM174.17
Wavpay Credit	12–18 %	RM500+ / 6–24 months	RM174.17

*Note: Tambadana’s rate is not officially stated but is estimated at around 18 percent per year based on KPKT limits.

The monthly instalment is calculated using the flat‑interest formula: total interest = loan amount × annual rate × (term/12). For example, for a RM500 loan at 18 percent per year over three months, the interest is RM22.50 (500 × 18 % × 3/12) and the total repayment is RM522.50, making the monthly instalment about RM174.17. This comparison provides a rough picture; the exact amount depends on the specific terms of each provider.

Credit scores, CCRIS/CTOS and fraud

Taking a loan, even a small one, affects your credit score. Credit‑reporting agencies such as CCRIS and CTOS record payment histories. Late or missed payments will lower your score and make it harder to obtain future loans. Conversely, timely payments help build a positive record.

Failure to repay can also have legal implications. Lenders can file civil claims or send pre‑litigation notices through the courts. Even for small amounts such as RM500, your credit reputation will be affected. In the worst case, you may face legal actions such as a default judgement. To avoid this, contact the lender immediately if you encounter difficulties; some companies offer rescheduling options or moratoriums.

Be wary of fraud. The increase in digital‑loan usage has attracted cyber criminals. Among their tactics is posing as company representatives and sending fake links via WhatsApp or SMS. Wavpay emphasises that they do not use agents and advises customers to check that the message truly comes from an official number. Always check the official website or contact number before sharing personal information.

Ways to check loan status

Most providers offer easy ways to check the status of a loan:

• Mobile apps: GOpinjam and BigPay provide real‑time notifications within the app. You can view your balance, the next instalment date and the amount of interest charged. BigPay, for example, sends reminders two to three days before the instalment date so borrowers can prepare funds. Such notifications help avoid arrears.
• Web portals: ACOM and Emicro offer online portals where users can log in using their identity card number or email. Here you can download your payment schedule, check your current balance and apply for restructuring if you encounter difficulties.
• Checking via bank or e‑wallet: If the loan is linked to a bank account (for example CIMB or BigPay), the status can be viewed in the transaction history. Make sure you keep proof of payment for records.

To check whether a lender holds a valid licence, visit the i‑KrediKom website or contact the KPKT helpline. This ensures you are dealing with a company that complies with regulations.

Alternatives and other options

Before taking out a commercial loan, consider interest‑free options:

• Family and friends: Borrowing from family or close friends may be the best option without interest charges. However, make sure you draw up a simple agreement to avoid misunderstandings.
• Zakat fund or baitulmal: For Muslims, zakat institutions provide financial assistance to asnaf (eligible recipients) or those facing hardship. Assistance is usually in the form of grants or interest‑free loans.
• Charitable agencies or NGOs: Some non‑governmental organisations offer emergency assistance to individuals affected by disasters or job loss. They may provide cash assistance or food vouchers.
• Restructuring expenses: Sometimes reducing non‑essential spending (for example, pay‑TV subscriptions) or selling unused items can raise immediate cash without borrowing.
• Ar‑Rahnu (Islamic pawn): You can obtain instant cash by pawning gold items; the service fee is lower than the interest on a personal loan. However, there is a risk of losing the item if you fail to redeem it within the stipulated period.
• Savings cooperatives and rotating savings groups: Join a “kutu” (rotating savings scheme) or a savings cooperative. Although informal, this method helps gather capital in turns; make sure the group members are trustworthy.

In addition, join government or NGO programmes that offer interest‑free micro‑loans to start small businesses. Programmes such as Tekun Nasional and the Women Entrepreneurs Initiative provide capital assistance along with business training. Eligibility varies by programme, so refer to the official sites for the latest information.

Signs of an illegal lender and selection tips

Finally, being aware of the signs of fraud is important. These are characteristics of an unlicensed lender:

• Requesting an advance payment: Borrowers should not have to pay anything before the loan is approved. Requests for advance payment are often a scam tactic.
• Offering rates that are too low: If the interest rate offered is far below the market limit (for example below 5 percent without collateral), be cautious; it may be unrealistic.
• No physical address: Licensed lenders must have a valid office address and display their licence on the premises. Wavpay emphasises that agreements must be signed at the registered address.
• Using unofficial agents: Legitimate lenders do not appoint individuals as agents to process loans. Any promotional messages via WhatsApp or Facebook that do not go through official platforms should be ignored.

To choose a safe provider:

1. Check the KPKT licence – use the i‑KrediKom portal or an official database to ensure the company is registered.
2. Compare rates and terms – refer to the comparison table above and use loan calculators to assess the final amount.
3. Read user reviews – other people’s experiences provide insights into customer service and transparency.
4. Prioritise reputable digital platforms – GOpinjam, BigPay and large cooperatives have better reputations than unknown advertisers on social media.
5. Use the DSR formula – calculate the debt‑service ratio (total monthly debt instalments divided by net income × 100 percent). Keep your DSR below 40 percent to avoid financial stress.

Conclusion

An RM500 instant loan can be a lifesaver in an emergency, but it must be used responsibly. In closing, remember that although “instant 500 loans using IC” and “RM500 instant online loans” look attractive, always check the company and read the terms carefully. With living costs rising and digital platforms growing rapidly, access to micro‑loans is becoming easier in 2026. Market reports show 94 percent e‑wallet penetration and high uptake of Buy Now Pay Later in Malaysia, signalling a shift toward digital finance. Borrowers should consider interest rates, hidden charges, repayment terms and the impact on their credit score before making a decision.

Looking ahead, integration of artificial intelligence in credit assessment is expected to increase. Algorithms that analyse alternative data such as utility payments and e‑wallet transactions will make eligibility more inclusive. However, borrowers need to understand how their data is used and ensure privacy is protected. Financial literacy programmes by the government, financial institutions and fintech platforms should be encouraged to help middle‑aged groups navigate the digital financial landscape.

For example, Mr. Tan, a 48‑year‑old e‑hailing driver, once had to borrow RM500 to repair his broken phone — the main tool he uses to earn a living. Without the phone, he could not accept orders and lost his daily income. This small loan allowed him to return to work within a few hours. However, after the incident, he began building an emergency fund so he would not rely too heavily on instant loans in the future. Tan’s story underscores the importance of financial planning and having an emergency fund to reduce stress when emergencies occur.