Salary Advances: All You Needed to Know

Just landed a new job and struggling to meet ends? Don’t know who to turn to for your temporary cash-crunch? A salary advance can be a panacea for all your liquidity problems. The concept technically refers to an early payment of a portion of an employee’s salary – but is often used to refer to instant loans and cash advances before paydays. These advances are usually recovered in installments.

The Why

As banks lure the salaried class for home and car loans, those who miss out are the ones who are hard-pressed for money to meet immediate expenses. Many today are unable to navigate into the corporate world as their expenses mount. After all, establishing yourself in a brand new place requires capital. Right from arranging accommodation in metro cities to meeting short-term travel expenditures, keeping up with all the added expenses is a daunting task. This is where monetary help such as salary advances can help.

Most of us attempt to save for a rainy day fund. But with costs of living on an upward trajectory, coupled with those few times when we give in to our urges, it’s a difficult endeavor. Moreover, in a country like India where festivities are welcomed with much gaiety and expenditure, money crunch is a common problem. It is almost like a faucet that won’t turn off.

The What

To navigate rough waters, you may avail of salary advances.  A salary advance has the following advantages:

1. Fast Processing and Disbursal: Taking a loan from a traditional bank is tedious and time-consuming. It takes weeks to process the loan and a lot of paperwork. However, waiting is not an option when you have an urgent personal need for cash. That is why salary advance which generally takes only a day or two to be processed and disbursed are preferred over loans.
2. Interest Rates: Usually, when you take a personal loan, the interest rate on it starts accumulating soon after its disbursal. However, in case of salary advance like the one offered by Fibe, you’ll only be charged for the number of days you use the money.
3. Comfort with Flexibility: Salary advance loans come with several repayment options. The flexibility ensures that there are much lower chances of you being out of money when the repayment is due. Moreover, you may use your salary advance anywhere and everywhere, with restrictions.
4. Borrow small amounts: Need some cash for that much awaited Goa trip or that feature-packed smartphone? Guess what, you can take even small advance salary loans.

Nobody likes walking on a tightrope. So, why should you when you are financially constrained? A salary advance is extremely beneficial in grabbing opportune investments. It also helps during unplanned hospitalization or other unfortunate events, where immediate money is needed. A salary advance can help you with everything from the purchase of a house or a car, timely payment of deposits, etc. However, with less than two per cent companies in India giving advance salary support to their employees, an individual should be ready with Plan B. The need for the sector is fairly apparent – over 200 salary loan apps are said to be competing in India to meet these customer needs – a fairly large pool, but one in which EarlySalary, the best advance salary app, stands out (more on that, below).

The How

As Shakespeare wrote in Hamlet. “Neither a borrower nor a lender be. For a loan oft loses both itself and friend”, asking friends or family for money can potentially strain relationships. If you need extra money for an unexpected emergency, there’s one source: Fibe’s Salary Advance. A unique salary advance app that can assist you meet short-term pecuniary needs with quick turnaround time and zero paperwork, Fibe allows you to borrow up to Rs  2,00,000 with interest rates as low as Rs 9/day. The platform has also partnered with major ecommerce portals to allow you to make purchases directly from their custom wallets, making it easier than ever to make those urgent (or even impulsive) buys.
Tide over your month-end and mid-season blues, with EarlySalary’s direct cash transfers or shop with partner websites today and pay later in EMIs at no extra cost. Sign up here!