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In its latest effort to rein in risks from the fast growing, loosely regulated cash loan industry, China’s financial regulators. The regulators will also halt new approvals of online micro lenders and cross-region lending businesses.

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"So I took out more loans. Every time when I didn’t have money, I used new loans to repay old loans. That’s how I got trapped deeper and deeper."China Rapid Finance Ltd, an online micro-lender that raised $60 million in an April listing.

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In the case of medical loans, there’s also an urgency on the part of the lender to disburse the money. The time of disbursement can be as quick as three hours.

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