Can Millennial Stress be Resolved by Financial Wellness?

Stress is an issue bigger than ever for millennials, who are rushing ahead with their worklife, finding little time to enjoy the intricacies of life. They are not only toiling themselves with projects, preparing reports and meeting targets, but also when off the work they busy themselves worrying about their debt, savings and expenditure.  India has been, off late, a very volatile economy with companies shutting down production and filtering out chunks of employees. As such millennials are forcing themselves to work in return for poorly paid salaries and unsatisfactory job environments. In most of the cases, they are not able to manage their day-to-day expenses and have to revert to debt; while in other cases are confused about their financial course.

A whopping 76% of Millennials say they are experiencing financial stress, up 23 percentage points from 2018, according to the PwC 2019 Employee Financial Wellness Survey.

Financial stress is the top contributor in affecting employee health and morale followed by their jobs and relationships. Matching your salary with your expenses is only the tip of the iceberg, when cash flow and debt issues add to the worries. Employees are worried that they are not able to save enough and will face or are facing a financial crunch. Let’s look at the major issues hounding today’s millennials in terms of finance:

Past concerns  

With higher education becoming more expensive each year, an increasing number of new employees enter the corporate sector already laden with the burden of huge debt in the form of education loans or personal loans. As per Workplace benefits report 2017, 40% of millennials say that they left high school and college unprepared for the real world. As such they look upon their employers for the necessary guidance and help related to a majority of topics around financial wellness. 18% of millennials want more help with their student loans.

In some cases, these debts may be gifted down from one generation to another. A son may have to pay off a home loan or some other debt incurred by his father. These circumstances dilute the finances and millennials find it difficult to lay away the stress.

Present concerns

According to the 2017 Workplace Benefits Report, a significant number of Millennials say they feel unprepared to manage their finances and need help with topics across the financial wellness spectrum, including saving for retirement (43 percent), general savings help (40 percent), paying down or managing debt (34 percent), saving for major expenses (36 percent) and budgeting (31 percent). 

Peer pressure, maintaining the status quo and lavish lifestyles often lead millennials to the brink of a financial crisis if they do not plan their finances well in advance. Many are highly ignorant about how to proceed with investments; banks or mutual funds, long term or short term, commodity or shares, and a lot more. About 43% feel that they require more help with investing, 40% wanting more information on how to save taxes and 21% feel that they want to save more. It’s an additional issue when they require funds in a lump sum for unforeseen expenditure or a major purchase. They either trap themselves in instalments or else fall in a debt trap. 63% of Millennials consistently carry balances on their credit cards and two out of five have trouble making minimum monthly credit card payments.

Future Concerns

Besides provident fund schemes, gratuity and a few other benefits, employees aren’t assured adequately about their future. They remain concerned about their retirement and pension, their children’s education, medical expenses and a lot more. Pension schemes are offered by insurance firms, but which one is best suited remains a matter of concern. Career opportunities and growth also impact future and present decision making. Not surprising then that employees, especially millennials, find themselves to be dependent on their employers.

Why should employers take up financial wellness programmes?

Financial stress not only impacts an employee on a personal level, but his working capabilities and mental faculties get impacted too. Stress can be behind severe health concerns that may lead to employee absenteeism, employee turnover, and dissatisfaction. The issue of financial health becomes of utmost importance to keep the solubility of the firm intact on one hand and to achieve common organisational goals on the other. As per a survey, an employee spends 12 hours on an average each month stressing about their finances. 

Bank of America Merrill Lynch report says that the lack of confidence in financial matters affects Millennials’ workplace behavior. On average, employees spend 3 work hours each week (12 hours per month) dealing with financial stressors.

A well thought of and structured wellness programme may act as a tonic for the employees’ financial health:

#1 Making an in depth study of employee concerns before finalising on the mode the financial programme is critical. Not everyone shares the same crisis, and not everyone will desire third party approvals or advice before taking decisions. A financial assessment is essential before you initiate the program and want it to succeed. This can be an eyeopener for those employees who may have been unaware of the causes of their financial stress and will make them ready to adopt the new financial course.

#2 Educating employees about financial health and other resources should be taken care of as well. This can be one through seminars, online courses, or even lectures and classes conducted by an expert or professional.

#3 The employees must be educated on healthcare costs as well. It doesn’t hurt to take this opportunity to promote healthier lifestyles as well. This can save them a lot in the long run. Group insurance schemes and health insurance schemes should be encouraged as a norm in the organisation.

#4 Financial debt management, especially the management of student loans, is another area of focus. Employers, if possible, could even consider taking it upon themselves to sort out the education loan or debt of the employees as a gesture of goodwill. This can be offered as an employee benefit as well. Executed right, the company can go a long way in earning the reputation of being the best in class when it comes to their employees’ welfare.

#5 Then comes the basic question of managing the current expenses such as installments, deductibles, premiums and other expenses. There are several paradigms involved in financial planning and it can be overwhelming for a millennial who has just been placed on his job.

Encouraging employees to take part in these programmes and letting them get involved through participation, and one on one discussion will assist them in reducing their financial stress. The overall focus of the employee can shift to organisational task boosting his productivity and overall efficiency. At the individual level, it will boost their confidence to manage their current expenses and plan for their future expenses in advance. Financial wellness programmes can, therefore, help in improving employee health and quality of life. A healthy and financially sound human resource can be an unending source of profitability and efficiency for any enterprise.

Factors That Affect Your Personal Loan Interest Rate

Personal loans have witnessed a huge surge in demand and continue to grow at a rapid rate. People may require quick personal loans to settle their different financial needs, be it a wedding, vacation, tuition fee, event organising, renovation projects, medical emergencies etc. Being multipurpose, typically unsecured, and in some cases, no credit score checks, make personal loans well suited for most people and also explain their growing demand.  

As tempting as they sound, there are still a few things that should be considered before applying for a personal loan. Even if you have ascertained your ability to make full repayment of a potential personal loan, interest rates can still be a major factor affecting your repayments.

For home loans and car loans, the rate of interest is fixed for all borrowers. But personal loans’ interest rates are constantly fluctuating and may be different for each borrower depending on the eligibility criteria set by the lender. Therefore it is highly recommended to know all the important factors that can affect your personal loan interest rate.

Here are some key factors that can or will affect the interest rate on your personal loan:

1. Your Income

Your income is the most critical element that determines the interest rate on personal loans. It’s an obvious truth that individuals with high income are more likely to fully repay their loans on time than those with lower incomes. High income of a borrower provides a greater level of confidence in borrower’s repayment capacity. 

It can be easily observed in the lending sector that individuals with high and stable income tend to get away with lower interest rates on their loans. However, lenders may levy higher interest rates on loans given to low-income individuals to safeguard themselves against potential risks.

2. Your Credit Score

It is common knowledge nowadays that credit score plays a critical role in loan approvals. However, for personal loans, your score becomes even more significant because it will not only decide the loan approval but also impact the interest rates. The credit score reflects the financial performance of a person in terms of previously taken loans or other credits.

Each timely repayment against your loan will increase your credit score while delayed payments or defaulting will have negative effects. In other words – taking an instant loan can boost your credit score. A higher credit score conveys a higher level of trust in the borrower’s repayment ability, allowing them to take loans at lower interest rates. Typically, a score above 750 is considered a good credit score.

However, many digital lending platforms such as personal loan apps provide personal loans online for bad credit scores. 

3. Your Employer’s Status

Since personal loans are typically unsecured, lenders seek different factors that provide some trust in borrowers, and the reputation of your employer is one among them. The reason behind this logic is fairly simple. Borrowers who are employed in a renowned organisation are considered more financially stable and responsible for making timely repayments. Sometimes, lenders may also have more relaxed lending policies borrowers working for specific organisations.

4. Your Debt-to-income Ratio

Assume you are employed in a well-known company and earn a relatively high salary, but you have a decent part of your salary going in debt payments. In this scenario, all your previous debts are certainly going to affect the interest rate on any potential personal cash loan. Debt-to-income ratio is calculated by dividing all your debt payments by your total income. A higher debt-to-income ratio means more obligations on the borrower’s part, and the lender may charge a higher interest rate on your loan just to be on the safe side.

5. Your Relationship with the Lender

Developing a sense of trust in one another after interacting for longer periods is part of human nature, and this is also true for you and your lender. Banks usually are more lenient in charging interest rates when lending to a trusted customer. However, this trust doesn’t build overnight. It takes a lot of time and responsible behaviour by customers of the bank to maintain their loyalty. When lenders see your loyalty toward their institution, they are likely to offer you a better deal than what newer customers would get.

Closing Word

Apart from the above-mentioned factors, several other smaller elements can affect your personal loan interest rate. For example, some lenders may offer you a lower interest rate if the loan tenure is short. Individual negotiation skills may also be effective in getting a good deal sometimes. Nonetheless, by knowing all the elements that factor into personal loan interest rates, a person can be better prepared when applying for a loan.

Are Personal Loans Tax Deductible In India?

Quick personal loans are a ballooning trend these days, and thanks to instant personal loan platforms, this trend is gaining momentum everyday. Since personal loans are unsecured and can be availed easily, a larger number of borrowers find themselves going for these loans to procure funds for their personal needs. These requirements can be anything, such as a wedding, vacation, various education expenses, or other personal projects.

Although personal loans are a quick way to arrange funds, fluctuating interest rates are always a subject of concern for borrowers. This makes tax deductions on personal loans a much needed benefit by borrowers. But the most important question here is, do we actually get tax deductions on personal loans?

Does India’s Income-tax Act (ITA) Allow Tax Deductions on Personal Loans?

When we talk about tax deductions on loans, there are two aspects of any loan, and each aspect is tackled differently by India’s income-tax act in terms of tax benefits. These two aspects are: 

  1. The principal amount of the loan
  2. The interest charged on the loan

If one is to answer the question about the possibilities of similar tax deductions on personal loans as we get on other types of loans, the plain and simple answer would be “No.”

The Income-tax Act of India does have rules and guidelines for tax deductions and tax exemptions on both the principal and interest of certain loans, such as home loans, education loans, business loans etc. However, the income-tax act does not specifically entertain any tax deductions on your income-tax returns when it comes to personal loans. 

Due to the lack of direct mention of tax relaxations on personal loans interest rate and principal in the income-tax act, the end-use of loan money will decide whether tax should be levied on a personal loan or not.

Another key factor here is the source of your loan be it a traditional source or an instant personal loan app. The principal of a personal loan can become taxable or non-taxable depending on the source from which you acquire the loan.

If you take a personal loan from a bank, NBFCs, other legally approved financial institution or applied for personal loans online using an instant loan app, your loan’s principal amount is considered a liability and is not taxable. However, if the amount is borrowed from a friend, relative or other non-professional lending sources, it is viewed as your income and is added to your gross income at the time of income-tax calculations.

But what about the interest paid on personal loans. Can borrower enjoy tax deductions on the personal loan interest? As discussed above, there are certain conditions and the final use of the loan money that will be considered for any tax relaxation.

Here are three circumstances under which a person can avail tax benefits on personal loan:

1. Personal Loan Used for Business

If a borrower ends up investing the personal cash loan in his business, the interest on that loan becomes a liability for that business. Here, the interest paid is considered as an expense and can be deducted from the net profit of the business. This brings down the total amount of taxable net profit. Furthermore, the income-tax act has set any limit on the amount that tax-deductible liabilities of a business. This means that entire interest on the person can be tax deductible if used in business.

2. Personal Loan Used for Buying or Construction of a Residential Property

Section 24 of the Income Tax Act, titled “Deductions from Income from House Property” makes it possible to enjoy tax benefits. According to Section 24, interest paid for funds acquired through a personal loan can be deducted from the net taxable income from residential property, if the money is used for purchasing, constructing or renovating the same property. 

Since section 24 of ITA does not specify the type of loan, personal loans are also eligible for said tax deductions. However, the borrower would need to present the required documents to prove the use of personal loan money for buying, repairing or constructing of house. Up to ₹2,00,000 can be claimed as tax deductions on the interest of personal loan if the borrower occupies the house.

3. For Purchasing Assets

If the borrowed funds are used for acquiring jewellery, shares, or any other non-residential assets, the borrower cannot claim any immediate tax relaxation at the time purchasing said assets. However, the interest paid on loaned money used for buying the asset is added to the total cost of acquiring that asset. Therefore if the borrower ever sells the particular asset, the paid interest as part of the acquisition cost is also deducted from the capital gains, effectively reducing the taxable profit.

Closing Note

Instant personal apps like EarlySalary have provided easy access to fast personal loans. Although The income-tax act of India does not explicitly provide any guidelines on tax deductions on personal loans, the vagueness allows other ways to ascertain tax deductions on personal loans. However, tax benefits on personal loans can only be availed if borrowers fulfil certain eligibility criteria by presenting the necessary documents. So it is very crucial to keep safe all documents, bills and certificates relevant to the loan or the use of loaned funds.

5 Essential Financial Tips for 2020

2020 is almost here and it’s time for new resolutions. However, if your finances are the beating heart of your plan, then it’s also time to manage them. Having a solid grip on your finances is the best way of taking advantage of new opportunities and weather storms.

In this post, we discuss 5 essential financial tips to help you enjoy the upcoming holiday shopping season without derailing your financial goals for next year. These tips can help you stay on track by mapping your goals now so you can start off on the right foot and avoid quitting a few weeks into January. 

  1. Establish Your Savings Goals 

The first step towards financial planning is establishing saving goals. Define your future personal finance savings goals. Plan the major expenditures such as house purchase, wedding, children’s education, etc. Do you need a down payment for a home? 

Make a list  of what you are saving for and prioritise them. If you have already started saving, map your progress. See if you can add more and analyse if they are dipping. Re-establish your savings goals and create a plan to stick to them. You must have specific, measurable, realistic and time-bound goals. 

2. Take action immediately

Goes without saying – it is critical to begin working towards building retirement and investing savings. If you have specific retirement goals, you may need to increase your savings, investment and let compound interest generate more earnings for you. Certain factors constraint our ability to save for our retirement account. This number can depend on your age at which you begin  making contributions and the type of retirement account you have. Doing so can also help you take advantage of tax-saving policies.

Setting aside money on a regular basis can act as a cushion in emergencies such as job losses and allow you to leave your investments alone in case you fall on hard times.

 3. Pay Off Credit Card Debt

Excess leveraging can be dangerous. Credit card debts, when on the rise, can become the number one obstacle in your journey towards financial wellness. Look at your balances, see what you can do about reducing your debt burden, review interest rates and strategise a prudent debt management strategy. To decide whether or not a debt must be repaid, consider the opportunity cost. If the present value of money is higher, then you may get more value of money. You could consider taking an instant cash loan from EarlySalary – where you can borrow up to Rs 2 lakhs for as low as Rs 9/day. The instant loan option from EarlySalary certainly works out to be significantly cheaper than the cost of credit card debts.

4. Prepare for Taxes Early

Gathering tax receipts, determining reductions, income proof and tax consultation to evade the tax preparation hustle in March and early April can put you in the position to get an earlier refund. While also giving you the time to discuss any issues with the IRS before they become unreachable in March. You can optimise your tax efficiency by making the most of allowable deductions for contributions to retirement savings before the financial year ends.

5. Invest in a Diversified Portfolio

Don’t keep all your eggs in a single basket. With investment instruments such as equity markets, mutual funds, annuities, real estate, etc., investment diversification has become much easier. If you are consistent and careful with your investments, you will be able to generate a significant savings pool. However, remember that as you near retirement, the weight of equity investment may be changed. 

Don’t just follow these financial tips right off the bat. Assess what’s best for you, allocate money in a way that maximizes returns. It is important to not just buy into the conventional wisdom but also take the time to think about your own financial situation. Re-evaluate you financial goals every year and don’t let your financial vigour slip through the cracks.

Why is there an increase in demand of personal loans?

As the indebtedness of the average Indian grows, we cannot ignore the surge of retail loans over the past five financial years. As we cast our eyes on the rise in the number of loan accounts, we observed that retail loans have clocked a compounded annual growth rate (CAGR) of 16.4%. However, the CAGR of the number of loan accounts is just 7.5%. This is an indication of the increase in loan value per account has increased.

In this post, we explore the reasons for the rise in borrowings and an easy way to get an instant personal loan for all your needs. 

How much are Indians borrowing?

The average increase in Indian borrowing exceeds the growth in what the income would warrant. This can be inferred from the comparison of per capita loan amount versus per capita GDP growth. As per FY 2018, the growth rate of per capita GDP was 8.5%, while the per capita loan amount increased 17.9%. There’s enough evidence that the average Indian is not loathed to borrow and spend.

The unbridled growth in loans for banks as well as for non-banks such as instant cash loan apps signals the growing consumerism. Public and private banks are also happier lending to retail borrowers. Saddled by the dud corporate loans, banks are now extending flexible loan repayment options. Historically, the ratio of bad loans has not been more than 2%  while those for farm loans and industrial loans have been far higher. Moreover, credit scores and instant cash loan apps have made it easier for individuals to avail loans from the comfort of their homes.

What are Indians borrowing for?

The sharpest growth in indebtedness has been observed in unsecured personal loans. Young Indian borrowers are opting for EMIs (equated monthly instalments) to fulfil a variety of their desires ranging from international travel to luxury goods. Indians are also increasingly spending on discretionary expenses such as vehicle upgrades, electrical appliances, house furnishings, etc.

There have been no major delinquencies despite an increase in the interest rates. This was because when the high-interest rates from the banks pinched the borrowers of unsecured loans, they moved to cheaper, short-term loans from non-banking institutions. The increase in interest rates has pushed retail borrowers towards instant cash loans which offer quick loans at lower interest rates. This has also been facilitated by the institutions tapping into different types of credit. Growth of online lenders, eKYC norms, expansion of digitally enabled lending technologies have been the major catalysts for the rise in demand for personal loans. For example, EarlySalary’s instant cash loan app provides instant cash loans for every purpose, no questions asked. 

Instant Cash Loans: The Next Wave 

With the growing demand for consumer credit, the financial institutions are gearing up to provide a more efficient means of lending. There are now more opportunities for lenders to tap the demand for consumer loans and credit cards. Fintech-powered loans are also on the rise as they can leverage technology and facilitate application and approval processes more speedily as compared to the traditional lenders who still use time-consuming, antiquated processes. 

As the fintech sectors opens new doors for innovative solutions, personal lending is set to turn online personal loan apps into the single most popular destination for customers looking to secure quick personal loans or payday loans. Fueled largely by millennials and their unlimited aspirations,  easy personal loans are all set to grow. With a personal loan app like EarlySalary, borrowers can apply for loan within minutes and receive an approval within 8 to 24 hours. These personal cash loans allow the borrower to gain immediate and unfettered access to borrowed funds secured through bank transfers. Many justifiably believe that personal loans are the type of loans to serve customers’ needs for immediacy and availability and now with personal loans online, new segments can be served better.

Instant Loan Approval Apps: An Easy Access To Travel Loans For Your Dream Destination

Planning to travel to your dream destination? Is your bank balance holding you back from travelling more and beyond? Well, not anymore. With the growth of financial services, travelling to new places and rejuvenating oneself from the hectic schedule of work-life is much easier.

Instant loan approvals through apps have made it much easier for millennials to travel solo and reduce the cost burden. Read on to find out how an instant cash loan can help you see the world and gain new experiences without hurting your savings.

Benefits of Travel Loans

  1. Visit your desired location anytime! 

Have you been waiting for a major holiday season travel offer to tick it off your bucket list? Found the ideal deal but ran out of money? Cheer up. With an advance salary app, you can apply for a travel loan within minutes from your nearest smart device and get approval within a few hours. The loan application is entirely online, and so is the approval process. So you can even grab limited period offers and save big. 

2. Easy Process, Quick Disbursal 

There are times when we are trapped planning things for a travel expedition that when the moment to execute comes, both time and money pull us back. This is where an instant cash loan helps. It minimizes the paperwork needed but also provides quick processing. EarlySalary’s instant cash loan app allows you to upload your basic documents online. The approval process typically takes 8 to 24 hours after application. Since it is supplemented with eKYC, the time taken by loans or salary advances taken through apps is much less. 

Last-minute travel plans are expensive and require you to plan expeditiously. Instant cash loan apps can efficiently plan last-minute holidays and savour those moments. Conventional personal loans require more paperwork and subsequently longer to approve. This can vary anywhere from 7-15 working days to approve. However, with EarlySalary, it is significantly faster, and even transferred directly into your bank account. As a customer, you’re bypassing the traditional complex application procesess. Just download the app, upload a few mandatory documents such as address and identity proof, pack and get ready to live your dreams. 

3. Nominal Interest Rate and App Exclusive Offers 

Instant cash for vacations can help alleviate the burden on your finances and also provide you with an efficient way to manage the costs involved. Another added advantage is the discount on discounts. Many advance salary apps such as the EarlySalary offer additional discounts when you shop or book through partner groups. These loans are available at lower rates. Considering the current inflation trends, this is extra saving. 

4. Flexible Repayment Terms 

Travelling to alluring destinations can cost a small fortune. However, if you are armed with a personal loan for travel, you can check every destination without worrying about repayment. Lenders like EarlySalary offer flexible travel loan repayment options so that you can have a memorable year-end holiday and repay comfortably thereafter. This way, you can consolidate debt unlike in conventional loans which have strict repayment schedules that may even drain the borrower in further debt.
From skydiving with friends in Dubai to indulging in fine dining in Paris and road trips travels in Leh, an advance salary app can be used to get holiday travel loans for everything you need. With more destinations to explore than you can count, from North to South and East to West, skip having to control your desire to discover new destinations. With the presence of multiple instant loan apps like EarlySalary, the how to get a travel loan question is comfortably answered. Apply for a travel loan scheme through the EarlySalary app to cover for all your travel expenses.

Some useful tips on travel: Travel on Budget in 10 easy steps

Sound Financial Advice: Invest more, Spend More.

Why is investing important? It is a question with an obvious but prudent answer. If you are already struggling to manage a monthly budget and repaying debts, you might wonder why should you add another financial task to your to-do list. But, investing might be the most important expenditure of all. Investing is crucial as it takes both your present and future into consideration. Not only do you end up with more money in your bank account than what you started out with but you also generate an extra source of income for yourself. So, if you want to retire as a financially independent person, investment is the way to do it.

What is investing? Investing refers to generating money by using money. In literal terms, investing is putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit. This means anything that guarantees to generate a return is an investment. Let’s discuss a few ways to know how can you make your money work for you :

#1 Spending More Motivates You to Earn More

Spending money causes money to flow back to you. Did you ever notice how close-fisted people are broke most of their lives, but people who spend or buy things always seem to be able to continue buying things? Saving alone never made anyone rich. It is the money transferred that triggers that energy to bring it back to you. Spending money does not mean becoming a spendthrift. Spending money here refers to spending money to make money. You should not be afraid to invest money. Make your money work for you, instead of just sitting idle in your account.

#2 Improving your Living Standards Impels You to Earn More

Money can offer you a healthy and comfortable life. By spending the right amount of money on quality food, you’ll face fewer health-related issues. Money helps in reducing mental stress as well. You can plan vacations to relax and rejuvenate your mind and avoid worrying about unnecessary office related issues when you need a break. You don’t have to work as hard if you have a lot of money, leaving you free to follow your passions and hobbies. You can hire people to help out with housework, buy yourself and your loved ones all the clothes and little goodies you always wanted to, and never worry about splitting the bill the next time you go out.

Those who know how to spend wisely, spend more time on investing in themselves, helping others, being with their loved ones. So, yes spending money can improve the quality of your life.

#3 The More You Invest, The More You Earn

An investor makes use of their money to acquire things that offer potential or profitable returns. They will devote his limited resources to the things with the largest potential for returns. These things may be paying down debt, going back to school, or fixing up a two-family house. Thanks to advances in technology, one can start investing with as little as Rs. 100 a month and a smartphone. But, does that really help? Investing involves risks. But, to succeed in life, playing safe won’t help you will have to take some risks. The more you invest the more will be the return on your investment. 

#4 Investing becomes one of your Income Sources

Having multiple sources of income has obvious advantages and can have a major impact on your financial status. Even an extra income of Rs 5000 each month could go a long way towards paying off debts or increasing your investments. With multiple sources of income, you’re guaranteed some income at all times. Diversifying our income streams is a critical task in difficult economic times, and investment is the best possible way.

There are two likely ways to generate income in our modern world: 

  • First, by working – either yourself or making others work for you. 
  • Second, – by having your assets work for you. 

If you intend to save with your back pocket or under a mattress instead of investing, modern economic dynamics are unlikely to have you truly build wealth. On the other hand, by investing you generate income by earning interest or by buying assets that increase in value. Once you start spending more in the form of investing, you start earning more as well, making your money work for you, effortlessly.

Of course, if there’s ever a shortage of funds, it really shouldn’t be an issue. With instant personal loan apps like EarlySalary, our ability to live freely remains unrestricted!

What’s the best thing money can buy? More Money

People often argue if money is the most important thing in one’s life and that money cannot buy happiness. But one thing that we all can agree upon is that money is the second most important thing in our lives because it can buy you time and freedom which is more or less the same as happiness! 

Realizing the importance of money does not make you materialistic. Rather, it makes you a practical person because you understand the value of money. It is not the money that should amaze one, it is what money can do for you. Money provides you with choices and freedom in life. Having money in your pocket makes you have control of your life. It allows you to decide how do you want to spend your life, it gives you the freedom to choose who you want to be. But, do you know what is the best thing money can buy for you? More money. 

Saving money will never help you grow your money. But, investing a small part of your money can help to multiply it. Let’s discuss more on how investing at an early age can benefit you.

#1 Time Freedom 

It is the most obvious and important benefit of investing money. Time freedom means having the time to roam meticulously throughout the world. It means not being stressed out and run around like a headless chicken on steroids. Having the freedom of time allows you to retreat and relax, and let you value this beautiful life in a much deeper way. Studies have shown that investing at a young age will make you end up with far more money than those you invest later in life. Having time on your side means you decide what you do with your time and not the bosses at your office. Once you start investing and earning, your job will no longer remain your only source of income.

#2 Compound returns 

“Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest. It is the result of reinvesting interest, rather than paying it out, so that interest in the next period is then earned on the principal sum plus previously accumulated interest.” Compound Returns prove to be a real benefit over the long run. The earlier you get started the greater you have the chance to take advantage of this. In simple words, the compound return is the power of the time value of money.

#3 Quality of life

“Quality of life is an overarching term for the quality of the various domains in life. It is a standard level that consists of the expectations of an individual or society for a good life. These expectations are guided by the values, goals and socio-cultural context in which an individual lives.” Good quality of life is the most tempting benefit of investing money. By investing at an early age you will be able to achieve financial stability faster in life which leads to a steady and good quality life.

Investing is how you build wealth. As a millennial, one can invest in various ways such as Mutual Funds, Bonds, IRA, Online stock brokers, Individual stocks, Real Estate,  Crowdfunding, and various others. But we don’t always meet our month ends and it becomes difficult to think about investing money. 

Well, we have a solution; rather than opting out of lucrative investments to cover urgent expenses, youngsters can loan those expenses using Instant Cash by EarlySalary. Instant loans are extremely different than bank loans. Bank loans are given over a long period of time and require a legitimate reason to ask for a loan. At EarlySalary, you can loan money for minor reasons like a monthly cash crunch. EarlySalary’s short term loans might be the best solution for an unexpected cash crunch or even an instantaneous Goa trip.  

Through EarlySalary, you can get a loan up to 2 lakhs without any prepayment charges. You can borrow and repay the loan on your own terms. Applying for the loan is effortless and takes only 5 minutes and you get the cash transferred to your bank account instantly.

This way you can easily keep investing and for any urgent expenses such as throwing a party for friends, going on a short vacation or repaying a friend, we got your back!

When everything is available on EMIs, why not education? Introducing School FeES

With the rise in quality of education, the cost of good education is skyrocketing in tandem. Naturally, all parents desire to provide the best education possible for their children. With this comes a pressure that most have to deal with, the affordability. It can be easily known that an average middle-class parent makes enough over a particular period to be able to send his/her kid to a good educational institution, but since schools nowadays require half-yearly or quarterly payments, it can understandably get a little tight. Recognizing this, EarlySalary has come up with a unique concept called School FeES which is essentially mirrored on student loans, but with superior caveats. Let’s look at some of the features of obtaining an Education loan from EarlySalary:


EarlySalary is known for its easy and hassle-free experience and as expected, provides the best possible way to deal with this process as their applications take an average of under 10 minutes. And the best part? No paperwork, all you have to do is download their app, register yourself and evaluate your eligibility, once it is done, you can get loans in no time.

Why is FeES better than a cash loan?

It is no myth that education loans can seem like overkill with their high interest rates, lots of paperwork and eligibility requirements. EarlySalary strives to make the entire process a lot easier by transferring the loan amount directly to the institute’s bank account. This way, you don’t have to deal with any part of the transaction whatsoever. FeES is also better because it is instantaneous whereas a conventional cash loan usually takes a few days to get disbursed. What makes this the best student loan option is that it also has a higher limit to borrow without any proof of asset collateral, as in the case of cash loans.

Duration and Repayment

School FeES can be availed for up to an entire year as an instant loan which can be repaid in EMIs of 3, 6, 9 or 12 months depending on your convenience.  The repayment policy on this is also flexible, as it allows prepayment of the loan with absolutely no charges for wishing to do so. 

The best loan solution

With up to 5 lakhs of credit available, you can better realize your dreams of sending your child to the best school or even getting yourself a skill upgrade. Fee deadlines and late fee penalties are issues no longer due to EarlySalary’s real-time disbursement of the education loans.

Another matter of concern for parents is being able to cover the expenses of all their children who often seem to miss out on the good stuff. So even if you have two kids where both of your children requires a loan, fret not, because EarlySalary lets you obtain a school FeES for up to two people which can again be paid easily by easy monthly Installments through popular modes of transaction like UPI or PayTm which make the process even easier than it already is. 
Make sure to check out School FeES by EarlySalary to learn more and make the best investment for your children’s education needs.

5 Ideas To Help Reduce Your Expenses

Whether you’re the little kid thinking about their pocket money, or working professional, saving money is a common goal all of us aspire for. But it’s easier said than done, of course. We have a myriad of expenses that simply can’t be ignored – be it rent, food or commuting. Then there are the occasional luxuries that one indulges in, like a movie, eating out, or visiting your favourite place. Saving under these circumstances can prove to be a harder task than one realizes. 

To help you plan better, here are 5 ideas to reduce your expenses.

#1 – Start By Eliminating Debts

Eliminating debts is a proven way of building. The interest rate on debts, when compounded over a large period of time, can burn a significant hole in your savings. Start with the smallest of your debts, and work your way upwards. This will not only give you confidence to tackle the bigger loans, but also help in saving the interest amount. Credit cards, in particular, can charge exorbitantly high interest rates on your debt. Make sure you’re taking an instant loan instead.

#2 – Organization and planning

Allocating different tasks a part of your budget is one of the best ways you can reduce your expenses:

  • Make a list of all the expenses you make on an average day, and categorize them on the basis of priority. 
  • Start by reducing your expenses on the low priority end of the list. 
  • Cutting a little amount here and there can make a big difference in your savings.

You can also make a financial calendar to help you remember your due payments. This will save the extra charge on late payment and simultaneously also improve your credit score.

#3 – Avoid high interest loans

With a myriad of banks and lenders in the market, there are wide ranging interest rates that are available. Low interest loans are usually accompanied by stringent terms and conditions that may sound lucrative initially but will prove hard to comply with. If you need loans, carefully research every available option. You can also turn towards personal loans, which provide immediate respite from money requirements. Instant loan apps like EarlySalary provide great options in this sphere. 

#4 – Turn to SIPs

SIPs (Systematic Investment Plans) are a great way to both divert and grow your money simultaneously. As the name suggests, the concept is a planned way to invest your money in periodic intervals. The best part about SIPs is that they are flexible in their timeline, as they can be quarterly, monthly or even weekly investment opportunities. Since these plans are flexible, you can choose to increase your investment or discontinue at any time. All you need to do is pay the amount you wish to invest. Nothing more. Investing early and for longer periods of time can give you a good return on your savings.

#5 – Focus on the ’50-30-20’ rule

In a nutshell, the 50-30-20 rule says that allocate 50% of your income (after tax) for your necessary expenses, like rent, mortgages or bills. 30% to your ‘wants’, like small luxuries including movies, dining out etc. If you’re spending more than 30% on ‘wants’, it’s time to cut back your expenses a little bit. Finally, allocate 20% to your savings and investment. This will include emergency funds or the SIP investments you plan to make. 

The rule was popularized by Elizabeth Warren,  a U.S. senator in her book All Your Worth: The Ultimate Lifetime Money Plan. It’s a proven formula that has gained acceptance in financial circles as a legitimate method of planning.

Of course, this isn’t an exhaustive list. But it’s a good place to start on your journey to financial wellness. For more tips, check out the EarlySalary blog here.

Instant Loan Apps Are Revolutionizing Credit In India. Here’s How

Thanks to the innovations in the fintech sector, borrowing money has never been easier. Among the by-products of the amalgamation of finance and technology are digital lending platforms or instant loan apps that allow people to borrow money in a faster and hasslefree way. Due to their instantaneous lending process and other advantages, digital lending is becoming popular with every passing day, especially in India. 

What is Digital Lending?

Before we dive deeper, we need to understand what is digital lending. As the name itself implies, digital lending is a process of lending money over the internet. This means that each step in the entire lending process is done online. Digital lending platforms such as instant loan apps incorporate a greater degree of automation to make the overall borrowing process a seamless experience for borrowers. This way people can apply for instant loan online and get their required load with minimum to no paperwork.

How are Instant Loan Apps Making Credit Easier in India?

It is a well-known fact that financial inclusion has been a major issue in India. For many years, banks are considered the go-to place by Indians in case of a loan requirement. They have long been a dominating player in the Indian credit market, be it a personal loan, home loan, car loan or any other type of credit. However, taking a loan from banks typically requires a tedious amount of paperwork and effort on borrowers’ part. Satisfying all qualifications needed for loan approval is not feasible for everyone. As a result, a credit gap has  naturally been created in India.

Now, we live in a digital age where digitisation has become the new norm of doing things, and India’s finance sector hasn’t been untouched from this digital revolution. In recent years, rising penetration of the Internet in India has opened up new doors to many new possibilities in the country’s credit market. Digital lenders were quick to siege vast opportunities presented by the advent of fintech in India and are providing instant funds to those in need.

Borrower-Friendly Approach

Making the lending process borrower-friendly is where instant loan apps have truly outdone their traditional counterparts. Banks generally follow rigid lending policies and procedures that have little to no regard to borrowers – especially those who need small loans. Whereas, digital lending platforms are effectively bridging this credit gap through their user-oriented policies designed to cater to the needs of individual borrowers.  

Reducing the Paperwork for Loan Approval

Minimum paperwork is one of the biggest advantages of instant loan platforms. Since the entire process takes place over the Internet, loans are approved and sanctioned much quicker as compared to banks. Furthermore, the introduction of the e-KYC has made it even more convenient for individuals to have their identity and demographic details verified and get their loan approved. For instance, digital lending platform EarlySalary only requires an individual’s PAN card and one of the ID proofs (Aadhaar, Voter ID, Driving License or Passport).

Easily Available to Individuals

Digital lending has been truly able to capitalize on the growing penetration of the Internet and smartphones in India. Instant loan apps or platforms generally operate through a web portal or as smartphone apps. This allows people to access credit funds easily without needing them to visit banks multiple times for their loan. Take EarlySalary for example – the instant loan app is able to disburse funds within hours of a borrower’s profile getting approved. This is also beneficial for lenders since they do need to bear the cost of establishing and operating a point-of-service.

Leveraging the Data

Traditional lending platforms require the evaluation of multiple factors that affect the loan application of a borrower, such as tax returns, credit profile, past loans and repayments, statement of bank accounts etc. This entire evaluation can take weeks or months, depending on the individual’s profile. However, digitisation has been a game-changer in this aspect. EarlySalary factors in a broader range of factors – such as your ‘Social Worth’ score, to quickly evaluate the data and ascertain the credit profile of a borrower.

Future Prospects for Instant Loan Apps

Instant loan apps have proven to be instrumental in filling our widening credit gap. However, to truly become and remain relevant to the people, these apps will need to continuously innovate and deploy new technologies. Furthermore, with increasing adoption, digital lending platforms are going to need a flexible approach to building and satisfy the needs of their users.