Among the many reasons for salary advances are the added expenses. But that’s not all where salary advances can prove to be useful. For instance, the rising costs may lead employees to borrow money from home or live a very frugal lifestyle towards the end of the month. But by getting a salary advance, they can avoid this.
A salary advance involves paying an employee a part of his pay in advance and making up for it in future salary payments. As such, opting for this has many benefits – from quick access to easy repayment. Read on to know more.
Here’s a list of pros you stand to enjoy when you opt for this facility:
Taking a loan from a bank can involve lengthy application and approval processes. In comparison, a request for a salary advance is much simpler and easier. Not just that, you get to enjoy flexibility in terms of amount and interest rates with advance salary adjustment.
Salary advances take convenience to the next level as lenders deduct the repayment amount from your future payslips. Moreover, since the minimum amount for salary advance is quite low, you need not borrow any hefty amount if not needed.
Expenses for treating sickness, hospitalisation, or other emergencies can burn a hole in your pocket. While you may think to liquidate your investments when such a situation arises, you don’t have to. Instead, you can request a salary advance and cover the costs easily without losing your assets or savings. A salary advance also allows you to pay for any unexpected big-ticket bills, be it credit card payments or expenses for your vacation.
As opposed to personal loans and other lending options, salary advances offer flexible repayment schedules. Since they generally align with your payday, problems like inadequate cash during the repayment period do not arise. As such, seamless repayment is one of the reasons for a salary advance request.
Lenders also sanction salary advances quickly and disburse the funds as quickly as possible. On the other hand, the approval and disbursal of traditional loans may take weeks. Hence, a salary advance can be an ideal option if you wish to secure funds quickly.
As compared to bank loans, salary advance loans have lower interest rates. This allows you to save considerably on interest payments. In addition, they only require you to pay interest on the amount that you withdraw and utilise.
Here are the reasons why employers must opt for a salary advance loan from Fibe:
Here are the reasons why employees should get a salary advance from Fibe:
In case you cannot get salary advances from your employer, you can always get an instant loan from Fibe. Apart from the hassle-free online loan application, you get to enjoy a loan amount of up to ₹5 lakhs. You also get affordable rates, zero foreclosure charges, flexible repayment and more. Download the Fibe instant loan app or visit the website to apply.
Getting a salary advance from Fibe is simple and instant, provided that your organisation offers this facility. If yes, then all you need to do is follow a few easy steps:
If your organisation provides this facility, then you can access your salary at any point through a salary advance. With Fibe, you can get up to ₹5 lakhs directly to your bank account with flexible repayment tenure. You can also use the money without restrictions or limits.
Salary or pay advance refers to the same financing concept. They just act as synonyms for each other.
While some organisations provide up to 50% of an employee’s net salary as advance, others may provide up to 80%. They will then deduct the amount from your future payslip.
In general, you can make up to 3 requests for a salary advance. However, this depends on your employer and the lender with whom they have tied up.
You can take a salary advance for myriad purposes like:
