People are being urged to investigate their options before taking up the offer of a new text messaging loan service that is charging extremely high interest rates.

Finnish company Ferratum Group has launched a 'micro loan' via mobile phone offering quick and easy access to instant loans of up to $600.

But the interest rate buried in the fine print was 292 per cent per annum plus an established fee of $28.

The Retirement Commission, which runs the budgeting website Sorted, warns people who need money urgently should shop around for a low interest deal before they take up a deal like Ferratum's.

''We find that when offers are put in front of people and its quick and easy, not that many questions are asked,'' said commission executive director David Kneebone.

He said a calculation he had done on the Ferratum website today showed he would have to pay 52 per cent interest on a $100 loan over a 30-day period which per annum which would be up to 600 per cent he said.

''That is extremely high. We would consider anything over 9-10 per cent high and the average credit card rate is 18 per cent annum.''

A quick fix unsecured loan you can get via text to solve all your urgent financial woes - sound too good to be true?

According to the press release issued this morning on Ferratum's behalf by Impact PR, consumers can only apply for one of its loans via text message. A borrower could enter the amount they want, how many days they need the loan for, and a personal code they have preregistered for.

The firm said the funds would arrive in the bank account within four minutes.

''This kind of access to emergency cash has been hugely beneficial to our customers across Europe. If you were in a supermarket with a trolley full of groceries and your Eftpos card was declined, literally within a couple of minutes of sending us a text you could have available funds to complete the purchase,'' said NZ manager Richard Yoon.

The press release made no mention of the interest rates charged.

Kneebone said Kiwis owed about $12.6 billion collectively on high interest loans including credit cards, store cards, hire purchase, personal loans and overdrafts. Around two thirds of that is on credit card debt.

''New Zealanders pay $650 million in interest on the credit card debt per year.''

He said people needing quick loans should consider all their options, including credit cards, banks and credit unions.

That includes cash, a car loan from a car yard or a hire purchase deal from a retailer.

In an example of alternative loan providers, the BNZ offers personal loans at around 18 per cent per annum while Kiwibank's personal loans start from 13 per cent per annum.