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Breaking Stereotypes: The Future Of Finance And Tech Is (And Will Be) Women

Work culture in organizations is gradually moving towards diversification and inclusion. The current times are witnessing gender stereotypes bring identified and shattered in the wake of gender sensitization and diversity. Organizations across the globe are making concerted efforts towards the goal of equality of opportunity. Still, equality at workplaces is a far fetched dream. Take for instance the case of the US, where: 

Yet they earn lower salaries and fill up fewer seats in male-dominated professions like technology and finance. Fortunately, these stereotypes – those of women typically avoiding math, science and often all things logic – are on the verge of shattering.

A study conducted by the global research organization Catalyst stated that among Fortune 500 companies, the companies which had the highest number of women directors on board have shown better financial results and those having at least three women on their board have stronger-than-average results.

Gender Stereotyping deeply impacts the psyche and confidence of the female workforce. As per research, by the age of 6 years stereotypes regarding intellectual ability take root in girls. Girls identify themselves less with STEM subjects (Science, Technology, Engineering, and Mathematics). At the workplace, women find a less conducive environment to hold leadership and skill-based jobs, share their ideas in discussions concerning these subjects. 

Indian Scenario: Tech

The current Indian scene has begun a positive, and hopefully soon – pretty picture: 

  • Women representation in corporate jobs has increased from 21% to 30% in a span of five years, as posted in  Zinnov-Intel Gender Diversity Study 2019
  • Females are represented higher in non-technical roles at 31%, while in technical roles their share is 26%. 
  • Only 11% of the C-suite positions are held by the women, they were represented at  20% in mid-roles and 38% in junior roles. 
Women's Day

If these stats are compared with the global figures, Indians are surely taking strides in leaps and bounds to cut across cultural misfits and gender Stereotyping issues. As per a NASSCOM study of IT professionals and middle management from companies of Europe and India, 35% of the people with specialist technology roles are women in India as compared to a mere 17% female representation in Europe. 

Several organizations like Oxfam India through its campaign Bano Nayi Soch are all in for progressive ideas that subvert the norms of patriarchy.   

In 2016, Facebook initiated recruitment practices focused on bringing in black and female workers into their workforce – in who now make up 36% of its workforce. Sheryl Sandberg, COO of Facebook and the only woman on their board posits the concept of ‘leaning in’ in her recent book as the idea of being ambitious in any pursuit.  

Kiran Mazumdar Shaw, the CEO of Biocon and the first woman billionaire entrepreneur, reiterates that there is no dearth of talent in meritorious women and even though a small minority, they are well respected and worthy of inclusion. 

Indian scene: Finance

Women are considered excellent investors, but female representation in the finance sector remains meager. A CFA Institute Gender in Investment Management study shows a mere 11% representation of women investment professionals in the industry.  Research across the globe has proved how a culturally rich and diverse workforce delivers optimum results and lower risks for investors. Experts cite several pros of getting the women included in the workforce. 

  • Firstly, female inclusion will tend to bring in newer perspectives into the industry that can usher in a new revolution in the industry. Quality of output and decisions will definitely see improvements. 
  • Gender diversity can lead to innovations and rethinking of the old investment strategies that are sure to impact investment outcomes. 

Several initiatives have been taken to improve the involvement of the females at all levels. For instance, Young Women in Investment, India’s first initiative seeks to create female awareness and interest in the investment management industry. The initiative focuses on presenting investment as a long term viable career option to the women. The success and support of this initiative have definitely paved the way for the inclusion of females in the future of finance. 

Initiatives to Break Stereotypes

While we’re doing well, there can be several initiatives that can make the future of tech and finance into a substantial female-centric arena: 

  • Tech can be leveraged to advance gender parity and women empowerment in a number of ways. The development of the gig economy is offering a contingent workforce that is sure to lessen such gaps in the future. 
  • Unlearning the biases in our mindset and doing away with gender stereotypes will be a daunting task that would demand our attention towards sustainable and all-inclusive economic growth. 
  • A survey conducted by Unilever showed that 77% of men and 55% of women felt that men are best suited for high-stake projects. Such views deeply impact gender parity issues. Marketers and media need to stop the sexist portrayal of women. 
  • Social, political and cultural fronts should take it upon themselves to curb these formative practices of stereotyping and expose both the genders to all kinds of non-traditional fields like tech or finance to let them make their decisions rationally. 
  • There is a dire need to bridge the skill gap among women by taking advantage of digitization and tech innovations. The global “talent shortage” is currently at 38%, with the top ten hardest jobs to fill in STEM professions. The focus has to shift to building competencies and skillsets among women. 
  • Another key area of concern is the online representation of women. There are 250 million fewer females present online as compared to males. Connecting and bringing greater access to regions with no internet can bring about unforeseen opportunities and can even act as catalysts synthesizing women’s inclusion in tech and finance. 

The instilling of the right temperament among the youth holds prime importance as the majority of them make their career choices by the age of 26 as per a survey. Women do not lack in tech or finance skills and knowledge, what they lack is the proper nurturing environment enabling them to fulfill their dreams sans any bias or stereotyping. Once the institutions of today get in sync with gender equality and diversity themes, the potential and opportunities awaiting women in tech and finance can be attained.
And we can surely hope for a feminine era in finance and technology awaiting us in the near future. 

“You are fierce, bold and daring! Also, the best when it comes to caring.”
Happy Women’s Day!

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Spouse In The Same Office: A Closer Look At The Implications for HR

Compiled By: Sandeep Raghunath
About Sandeep: He is the Head of Human Resources at EarlySalary, with 10+ years of international experience in HR across industries.

It is perfectly natural for a professional to fall for another if they’re working in the same office, or are spending a significant amount of time together. Open and vulnerable conversations are fairly likely to occur, and the more familiar they become with each other, the more potential there is for mutual attraction. While they may be frowned upon, relationships within an office setting are far from uncommon. Some partners even often end up getting married. 

In this context, however, the HR function isn’t expected to remain out of the loop. Organizational policies, cultural sensitivities, etc – there are many factors influencing the HR functions’ role in managing professionals with a spouse in the same office. How can they approach this? Let’s look at some important aspects.

Disclosure of relationship

It is vital to maintain an environment where it is known that keeping a relationship or marriage secret is not in the interest of the company and can have larger implications. According to Sarah Churchman, head of diversity and inclusion and employee well being at PwC, the only way to manage relationships is for the couple to be totally out in the open. “If they don’t inform us, someone else in the department will. Not because they are necessarily behaving in an inappropriate manner, but simply because they may fear a problem with favoritism.”

Some enterprises have a policy in place allowing for managers to be demoted, transferred or even dismissed in the case of the manager being in a relationship with their direct report without disclosing the same. It is, therefore, essential that an office couple is made to sign out a disclosure form with the HR Department. This allows for a line of communication between the office and the parties involved and also serves as a formal notice of their relationship. It also prevents misinformation and rumor-mongering in the workspace which hampers productivity. 

Different organizations have varying HR policies on how they deal with a spouse at the same office. If a company is strictly against work relationships, one of the spouses can be dismissed, though it would not be a popular move and discourage transparency. “You can’t legislate against office romances or indeed falling in love, and an outright ban would be totally unworkable,” says Churchman.

It is imperative for a company to have a policy on office relationships and furthermore ensure that all employees, especially spouses, get familiar with these and abide by them at all times during work hours. This includes coffee breaks, lunch breaks, business trips, etc.

Personal life and Professional life

The need to maintain a professional relationship between spouses in the same office space is vital. Often, the hardest battle in managing office relationships is inculcating the need to strike a balance between personal life and professional life. According to a research “on flirting at work” conducted by Amy Nicole Baker, an associate professor of psychology in University of New Haven, and an author on workplace romance papers, it was found that people who frequently witness other colleagues flirting often feel less valued by the company and have a decline in job satisfaction. This feeling of discomfort can also lead to many quitting their jobs. In order to prevent others from being uncomfortable and thus putting oneself under the radar. 

Spouse In The Same Office: A Closer Look At The Implications for HR
“Open and vulnerable conversations are fairly likely to occur, and the more familiar they become with each other, the more potential there is for mutual attraction”

Public displays of affection and flirtatious conversations can disrupt the working of the office and reek of unprofessionalism. It is essential to treat your spouse like a regular colleague within office hours and even in work parties, off-sites and other such events which are an extension to the office workspace.

Senior-Junior Relationship

In the case of a senior and subordinate getting married, the need for professionalism is critical in order to prevent conflict of interest. According to most office guidelines – it is necessary for the senior spouse not to be involved in the appraisal or evaluation of their partner. The two must not work together in the same department in order to curb the space for favoritism and nepotism within the workspace. There is also a potential threat to the security of confidential client information and the risk of information leaks.

To avoid the occurrence of favoritism, one spouse should be transferred to another department, and ideally, no couples should work together in the same department.

Divorce

The unfortunate scenario of a married couple splitting up can have deep repercussions on their work ethic, their behavior in the office as well as the office environment itself. The disclosure form should specify what would happen to both the parties in case of this occurrence. The way two ex-partners are treated in the office also deserves attention. They might act in a more isolated nature and may be unable to maintain good performance. This situation is a nursing ground for potential blame-game and office politics. This difficult period of the employees’ life should be battled with care and acceptance. They might not need advice and might need someone to listen to them in order to clear their mind and concentrate during work hours. In case of poor performance, they should be nudged towards the direction of working better and given gentle reminders instead of indifferent statements like “Your divorce is not our problem.”
Perhaps an Employee Assistance Program to help deal with such traumatic instances is worthy of consideration from employers.

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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.

Take A Pledge This Republic Day To Attain True Financial Freedom

If you are able to afford a lifestyle you’ve always wanted using your savings, cash, or investments, we’d say you’ve achieved “financial freedom”. Simply put, you have a definite source and/or sources of cash inflow that’d pave the way for you to afford your dream lifestyle. 

However, this is not as easy as it sounds, for there are a lot of factors that can pose obstacles on this path. Be it any financial emergency, increasing debt, any natural calamity, or any issue for that matter – all of these restrict you from achieving financial freedom.

Speaking of financial freedom, it is quite evident as to why it is critical to achieving it. With the Indian Republic turning 72 this year, there cannot be a better opportunity available for us in taking a pledge to attain true financial freedom, as we step into yet another year full of hopes and positivity.

There are a few tips that can surely aid in your journey of achieving the same. Wondering how? Read on to learn more.

Managing your money/expenses

A clearly laid plan will work wonders for you if you are determined to follow as planned. Planning well in advance as to where to spend and how much will not only help you in cutting down unnecessary expenses but also opens the door for savings. Know what are your goals – both short term and long term and save accordingly. Also, not forgetting to mention, save a little extra that’d come in handy in case of an emergency. Even if you are doing well financially, still don’t skip churning out a plan and managing your money as decided.

Investing

In addition to saving on a regular basis, look for options where you can invest your savings. Why are investments important, you ask? Well, who wouldn’t want to get higher returns? There are a plethora of options available to choose from to invest in – mutual funds, fixed deposits, RDs, etc. Yes, some investments are risky, but that totally depends on your risk appetite. Choose what you think is the best for you after thorough research and you’re good to go.

Using Loans Smartly

With that being said, there are still some events that you do not have any control over, and somewhere you do. An instant cash loan can make up for those uncertain events, thereby enabling you to achieve financial freedom. Some events that are under your control – say, for example, an automobile loan or an education loan can be put into the best possible use making your aim of achieving financial freedom easier than ever.

At EarlySalary, we will help you get through those uncertain events and those that you are well aware of. We ensure that you do not miss out on those unplanned yet important events. Plus, no more worries about an uncertain event or an emergency whatsoever. EarlySalary has got your back.

  • ‘EarlySalary’ is your one-stop solution for all your instant cash loan needs. Be it shopping, travel, paying bills or any cash requirement that can help you sail through your difficult moments – all of these will be taken care of by us. We provide an instant bank transfer facility of up to 5 lakh Rupees. Not just that, there are no pre-payment charges involved as well. All you gotta do is start off by simply downloading the EarlySalary app for your Android or iOS smartphone. Or you can also start your application by logging in to the web portal and check your instant loan eligibility. 

That’s it! Your instant loan is now in your account in a matter of a few minutes. With this, you no longer have to deal with long forms and lengthy procedures. Well, the cherry on the cake is that we are available 24/7 – get your cash crunch issues sorted at any moment.

  • Who wouldn’t have personal expenses to incur? Be it an education loan, a loan for paying your bills, a loan for traveling, or a loan for any other personal decisions – it is tough to be granted one, considering the time constraints. But, don’t worry. With EarlySalary, all your tensions are at bay. Your shopping wish list need not wait any longer, your traveling plan need not be restricted by budget, and you need not think twice before availing of quality education. We will cover all your needs and grant a personal loan just to see you align with your plans and decisions.

We leave no stone unturned in eradicating stress from our customers’ lives and enabling them to achieve their dream of financial freedom. On that note, let us all take a pledge this Republic day to attain true financial freedom. Visit our website to learn more.

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How To Win Over The Impulse Of Online Shopping War

On average, 42% of us overspend online, later having to deal with the financial repercussions, according to a CouponFollow report. Many of us even use credit cards on such splurges, making the whole event even costlier, as not paying the full amount due will attract hefty interest rates. This may even lead to a vicious cycle of debt traps or worse, insolvency. We’ve already shared tips on how to get out of debt problems, but this article is focused more on proactive measures, rather than after-the-fact tips.

What makes this problem even worse is the fact that we might not have really needed, or wanted the product, but fell into the allure of clever marketing strategies by the giants in the eCommerce platform. 

If you’re one of the people prone to overspending, or a young adult looking for ways to avoid such mistakes in the future, you’re in the perfect place. Here are EarlySalary’s top 5 tips to win the war against the online shopping impulse. 

Make a Shopping List

In yesteryear times, making shopping lists for items that are required to be purchased from local, physical stores used to be a regular chore. However, with the ease of ordering online, the practice has slowly disappeared, ushering in an era of purchasing things that aren’t essentially necessary, nor affordable. Making a shopping list, before you visit the website (yes, website, you’ll understand the significance later) of your choice, can directly limit how much you spend on your shopping “trip”. 

Sticking to what you need can be easier when you have a physical list to adhere to, and as a bonus, you will have a rough idea of how much you’re about to spend before you even visit the platform. 

The 24 Hour Rule

The problem with splurges is the fact that they happen impulsively, without much thought put into whether or not it was necessary. While some of the impulses can be controlled by making a shopping list, you have to rely on these other tips when that fails. The 24-hour rule is simple. If you’re purchasing something online which is not on your shopping list or isn’t an emergency purchase, wait 24 hours before committing to the purchase. 

This period of 24 hours will let you have enough time to go over your budget at least once and let you decide if this purchase is something you really want to make. More importantly, this thinking time will reduce the impulse part of the purchase and will help you make rational purchase decisions.

The Alt ID lifehack

One of the common reasons we get sucked into the whirlpool of online spendings is because of the thousands of offer emails/messages we receive on a daily basis. That being said, we can not really afford to sign up with a valid email id or phone number, as they are essential to help your track your purchase and ensure safe delivery. 

The solution to this debacle is simple, sign up with an alternate email id and your secondary phone number. If you don’t have either, creating a new email id is free, and if you don’t have a secondary phone that you can use, try a spam filter that weeds out the offer messages that you get from the tech giants. As the often misquoted saying goes “what you don’t know, can’t hurt you”.

Uninstall, the mantra to success.

Another reason the whole process is impulsive is because of the instantaneous and intangible nature of online shopping. While going to a physical shop is the only way to tackle both of the problems at once, uninstalling the various shopping apps can go a long way. 

Yes, granted, sometimes, these platforms do provide an app-only offer, but if you really think about it, these offers often accomplish in making you spend more than you set off to. If you do really want to/have to shop online, having the extra friction of searching from websites definitely helps. Also, adding to the previous tip, uninstalling apps will mean fewer offer notifications, stopping you from visiting the platform in the first place.

If you’re gonna do it, be clever

For most of us, the last time we overspent, isn’t gonna be the last time overall. We may lapse again, and it’s completely fine. While we may lapse again, it is prudent to set up measures and outs to reduce the negative impacts of overspending. Such measures include:

  1. Opting for cash in delivery (increases tangibility, and the negative response associated with parting ways with hard-earned money)
  2. Using Debit cards (not credit)
  3. Using EMI cards, or shopping loans that are cheap (like EarlySalary shopping loans)

While the last tip won’t necessarily help you prevent all of the negatives from an impulsive purchase, it will help you go into “damage-control” mode, and often help you get back to being rational before the purchase is completed. 

Even if it isn’t the case, at least, you need not pay interest rates above 40%. The damage will be limited to the amount you spend, and cheap interest rates (as low as INR 9 a day), greatly reducing the impact of your impulse purchase. 

Feel free to contact us for any questions on credit, loans, and your instant cash needs! We’re listening all day on:
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Same Day Loans: Solution to Your Urgent Financial Needs

There may arise times when you have financial emergencies where urgent expenditures can’t wait. Half the people in the country are underprepared for medical emergencies. When you own a small business and need to buy machinery or pay your staff or come across a medical emergency, you need instant cash flow to fulfill your needs. It can be extremely difficult to gather funds on such short notice. 

Applying for a personal loan can seem like a viable option, but how soon are personal loans approved? Stats show that 32% of millennials’ credit loans were rejected in 2020. However, with the evolution of the banking sector, seeking financial assistance has become very easy & quick today. Same day loans can be lifesavers in getting you out of any such urgent financial jams.

What are the Same Day Loans?

Same Day loans or Instant cash loans are funding solutions available to people whose need for financing is high within a short span of time. They are short-term loans that are unsecured and largely work like personal loans. As evident from the name, same day loans give you access to funds on the very same day or (practically) within 2-3 business days that you apply for the loan. 

Some Features of Same Day loans

Immediate disbursal

Disbursal of the money is either done on the same day or within 2 to 3 business days maximum. This makes this type of loan one of the most sought after options when it comes to urgent money requirements. The maximum amount of money you can avail a loan for will vary based on various schemes. No more going to the banks for hours and hours of paperwork and undergoing the stress of all documentation required, which brings us to our next key feature.

Online Application

Same Day Loans can be applied online from the convenience of your home if you have a computer or even a phone. This feature helps you save a lot of time, commute expenses, and effort. Complete the process within minutes, get the loan approved within hours, and receive the money immediately. Same day loans are provided by neobanks (banks that operate exclusively online without physical branch networks) or lenders that have adopted fintech lending into their system.

Minimum Documentation

The main requirement to avail the same day loan is to have a bank account and share some minimum personal and financial details. These don’t require any extensive documentation as other traditional loans do. You also don’t need to disclose the purpose of the loan which reduces further documentation. 

No credit checks or collateral

These loans are often availed by middle and lower-middle-class people and thus, no credit checks, no collaterals, or guarantors are involved. Anyone can avail same day loans irrespective of their financial backgrounds. This particular feature is highly in favor of the borrowers. 

Some pitfalls to bear in mind

High-Interest Rates

Same Day Loans have extremely high-interest rates because of their key features. The interest rates are similar to payday loans – about 400% on average. While the interest rates per day may seem manageable, they skyrocket when annualized. To put that into perspective, many personal loans charge about 4-36% interest, while credit card interest ranges from about 12-30%.

Debt trap

Not being able to repay the loan on time, can put you into some serious trouble. The downward spirals of the debt cycle incur huge penalties and additional costs. This makes it impossible to repay going ahead, making the probability of a vicious debt cycle extremely dangerous.

Final Word

Same day loans are the quickest and most convenient way to raise funds in a short span of time. Don’t borrow more than your repaying capacity so that you don’t feel burdened while repaying it. Read all the terms and conditions carefully before you sign the loan agreement to ensure they are in favor of the borrowers. 

At EarlySalary, you can get instant cash right into your account by availing of loans for up to 5 lakhs. Witness how the power of fintech can make the same day loan application process faster and easier!

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How Much Personal Loan Can I Get Based On My Salary

A personal loan is a relatively easier loan to procure when you’re facing unprecedented financial emergencies and ensures that you have access to funds when you need them the most. However, the amount for which you can get personal loans can vary due to several reasons, mostly centered around why you need it and what your income or salary is. Instant personal loans are a convenient way of managing financial emergencies and expenses, and one of the reasons why they are is because they are usually unsecured. This means that you don’t usually have to pledge any asset or offer collateral while applying for personal loans. However, there are a host of factors that determine the amount for which you can get personal loans based on your salary, which are as follows: 

  • Monthly income

Your salary or your income is the first and the most important thing that is considered when you’re applying for an instant personal loan. Even though you don’t have to give any security or collateral against the personal loans you apply for, since they are unsecured, you need to have an income that gives the financial institution certainty that you will be able to pay back the loan over a decided period. 

The higher your income is, the better chances you have at getting your instant personal loan approved quickly by various lenders. Moreover, your salary will also determine how high or low the interest rate will be for your personal loans. Hence, if your income is above the risk limit, you can procure personal loans in a fairly easy manner. Usually, the minimum salary requirement that makes you eligible for personal loans in rural areas is INR 15,000 and if you reside in a metro city, it is INR 20,000 per month.

  • Credit score

A credit score refers to the three-digit number, ranging between 300 and 850, which is calculated using your credit report, credit history, and the debts you have. This reflects your overall credit history, and how diligent you have been when it comes to paying back loans on time. 

The higher your credit score is, the more creditworthy you appear to the lender you’re seeking an instant personal loan from. Your credit score will also determine one of the most important factors that you need to consider when taking out personal loans – the interest rate on the loan. Again, the higher your credit score is, the better the rate will be for your future personal loans. 

  • Age

Another important factor that is considered when you’re applying for an instant personal loan is your age. This is because the younger you are, the more working years you will have to repay the loan to the respective financial institution. A majority of financial institutions prefer personal loan applicants who fall within the age bracket of 23 and 58 years. If you’re an entrepreneur, the preferred age bracket is considered to be from 28 to 65 years. This is higher because you have the possibility of working even past the usual retirement age, primarily due to the self-employment factor. 

  • Size of the loan

The size of the instant personal loan also determines if you are eligible for it or not, and this differs in different financial institutions. Hence, when you’re applying for personal loans, factor in your current salary, and ensure that it is of a reasonable amount. Applying for an exorbitant loan may lead to subsequent rejection if your income or credit score is not proportionate or supportive of the magnitude of the loan. 

  • Current loans and liabilities 

Finally, another factor that is considered when you apply for a personal loan is your existing liabilities and loans that need to be repaid. If you have an existing loan that you’re currently repaying, the lender wants assurance that you will be able to pay back the new and existing loans on time. Hence, your monthly salary should be adequate to accommodate your current and potentially new loan repayments without any delays. 

Instant personal loans, such as the ones offered by EarlySalary, are becoming popular and are preferred over traditional personal loans due to their quick and convenient nature. EarlySalary is a pioneer in this regard as they simplify the application process by making it online, and requiring minimum documentation. If you’re thinking of applying for an instant personal loan due to a financial emergency, EarlySalary is your best bet as you get convenient and suitable repayment options with reasonable interest rates and no repayment fees, in case you repay the loan earlier than anticipated. 

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You Don’t Have To Wait To Build Your Dream Home

Everyone dreams of having the perfect ‘home sweet home’, but in the end, end up waiting. You could lose the opportunity to buy your dream home if you are waiting for property prices to come down or better days to come to buy that home. “Buyer paralysis” – or, as it is popularly known these days, the ‘wait-and-watch’ syndrome – is one the main reasons today why aspiring homeowners do not make their move. There are various reasons why people prefer to sit on the fence rather than in their dream home,” said Arvind Jain, managing director of Pride Group.

There could be several reasons why people wait for getting their homes. It could vary from person to person regarding expectations, and objectives. But once you get that home, there is a possibility of a reduction of your financial woes. Here are some of the tips which can be followed to get your dream home sooner.

  • Being financially disciplined: This is the most important factor to be considered. The down payment amount goes from their own pockets, and if they are empty, the dreams will be shattered. A fund should be created especially to pay your down-payment. This could be done by expanding the income portfolio, cutting on debts and extraordinary expenses. The down-payment value can range from anywhere between 10-25% of the property value, and accordingly, the fund should be set up.
  • Budgeting: Consider this moment of buying your dream home a crisis, and create a budget. Categorize your expenses into useful and non-useful. Follow some rules and try sticking to that budget. There are many ways through which one can improve their budgeting skills. Check out EarlySalary’s blog on tips for adjusting your budget when facing a crisis to help you with your budgeting needs.
  • Knowing your dream home: Find the exact details about your dream home. Does it have the required bedrooms? Does it have the additional facilities you wish? Is the location of the place suitable? Asking these questions and finding their answers would help in making your decisions very clear about your dream home. This will also help in determining the cost of your house. And the cost should be quite in line with your financial goals; otherwise, one might be troubled with paying EMIs later.
  • Save and invest: Saving is the primary objective while planning to get something. But just keeping money aside won’t help you reach your goals. It should also be invested. Depending on the type of savings deposit accounts, one may earn from 2-10% of interest on their amount. But on the other hand, investment in other modes like mutual funds can give you 10-15% of interest. Although the risk factor increases, the higher the risk, the higher the gains.
dream home
  • Future EMIs amount: If the amount for future EMIs can be set aside before-hand, it completely eases your shoulders of the financial burden. An EMI calculator will help in determining the amount to be paid at regular intervals. This could be done by channelizing your savings and investments. This will give you an idea of paying your bills soon.
  • Preparing for other expenses: Expenses like stamp duty, registration cost, title deed changes’ memorandum, water, and electricity connection, furnishing, etc. would naturally occur when you get your dream home. Given the several costs associated, the aggregate amount is not going to below. Although they are difficult to accurately estimate, a certain portion should also be set to prepare for these incoming expenses.
  • Availing tax benefits: Upto Rs 2 lakh can be claimed as a tax deduction on the interest paid on home loans under Section 24 of the Income Tax Act. And under section 80C, a deduction can be availed up to Rs 1.5 lakh on the principal amount repaid.

Buying your dream home is never an easy task, but delaying it would mean an increase in related expenditure despite increasing income. Finding good home loans on various sites and apps will help you in making certain decisions. India’s Largest Instant Personal Loan & Salary Advance Platform, EarlySalary provides instant cash loans up to Rs 5 lakh without any prepayment charges and a flexible repayment period. You can learn about applying for a house loan from here too applying for a Home Loan.

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Let the Lohri Warmth Turn Your Debt Problem Away

The new year festivities are nearly not over and Lohri, another popular festival, is right around the corner. While it is all fun and frolic while the festivities are going on, all the expenditure during this time can burn a hole in your pocket. 

The new year shopping coupled with the financial hangover from the Christmas gifting has thrown the entire financial planning out of the window for most of us.  So, this Lohri, along with celebrating the end of the winter season and welcoming the spring season with open arms, throw all your debt problems out of the picture and embrace a more holistic and futuristic take on proper debt management and financial planning. 

Make the best amends in the current situation 

While the festive season is almost done, its impact is showing on the bank balance of most people. In order to get hold of the situation and to take the first step towards a more sound financial position, you can keep the following tips in mind: 

  • Do a thorough financial position analysis. Take stock of all your savings, expenditures, incomes et al and mentally map what has been done during the season. This will provide you with the requisite base to plan a more effective financial plan for the future. 
  • Start planning about savings and building an emergency fund for any rainy day to come. Start being mindful of where you are spending your money and try to cut down on as much unnecessary expenditure as you could. It may mean watching out the impulse buys online or random road trips with friends for at least a few months.
  • Make a tentative budget and stick to it for some time. A planned approach to handling finances goes a long way in making your financial conditions improve. 
  • While you are at it, try to pick up some alternative source of income, big or small. It can be a paid internship on the side or a freelance project that you could work on. Along with being great for your personal growth, it can go a long way in making up for the financial hangover caused by the festive season. 

How to manage your debt problems and move towards a more financially secure future 

After having evaluated the current financial ground that you stand on, taking care of the existing debt, and also evaluating the need for fresh credit comes to the focal point. 

Here are a few tips which can help you sail through your existing debt while showing you the avenues for a fresh line of credit if the situation so demands: 

  • If you are stuck in a situation of a debt trap, with the repayment of multiple loans and other forms of credit looming on your head, it is high time to take stock of the situation and probably take steps towards debt consolidation. It essentially ensures that the total number of lenders are significantly reduced and it becomes much easier to track the repayments and also negotiate for a lower interest rate. 
  • If you feel a dire shortage of liquid funds, you can always opt for instant cash loans. Organizations like EarlySalary can offer you instant cash loans with minimum formalities and very low-interest rates. It disburses the amount instantly directly to your bank accounts, at just a simple click. Visit their website to know more.  
  • Do some constructive financial planning which involves investment in diverse portfolios, setting up saving goals for the next year, or even plan the payment of your taxes ahead of time. All this will give you a birds-eye view of your financial position which puts you in a better position to make any major financial decision. 
  • Last, but not least, consider getting yourself a Credit suite.  A credit suite is a neatly packaged and carefully curated bunch of digital credit services. With all features like credit cards, salary advances, instant personal loans, and the Buy on EMI option, all integrated with one place, it can make your financial planning a cakewalk. 

While the concept of a credit suite is up and coming in the Indian Market, EarlySalary has already announced its first-ever Credit suite. EarlySalary is the market leader in this segment and offers all the abovementioned services, and more, all integrated on one platform. Its quick response time, easy processing, and instant approval of credit are what make EarlySalary the most preferred online loan lenders in India

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How To Invest Wisely For Your Child’s Goal

Bringing a new life into the world brings with it, a lot of responsibilities and financial liabilities. Children can be molded into their best versions through education and it’s one of the biggest cash outflows (not the only one) that a family has to plan for. According to a report by the Hong Kong and Shanghai Banking Corp. Ltd (HSBC), Indian parents spend an average of $18,909 (Rs 12.2 lakh approximately) on their child’s education. The global average is $44,221. 

Financial planning for your children’s future is no easy task. Saving and investing in an extemporary manner certainly won’t help. You need to identify the appropriate investment options at the right time to meet the financial goals set for your children. Here are some investment tips to follow for better financial planning for your children.

Start Early

With early saving and investing, comes the benefit of an extended tenure and the opportunity to earn higher. The best time to start financial planning for your children is when you know you are planning to have a child sometime in the near future. A delayed start can put other financial goals at stake. 

If you start early enough, you’ll have the best returns if you invest in long-term risky asset classes such as equities. By doing so, on top of you stockpiling a large sum, the money will gain from the power of compounding. The later you start, the better off you’ll be if you incline your portfolio towards the debt from equity.

Take Inflation into account

Stats reveal that the cost of any professional degree doubles in 6 years. Factoring the rate of inflation in the financial planning for your children is thus essential. Approximately calculating the amount required, taking into account the inflation, and working towards achieving that goal is highly advised. This will help the parents be mentally and financially prepared for the repercussions of inflation in the future. 

Opting to invest in a long-term mutual fund is the easiest way to invest in equities systematically, at regular intervals (through SIPs). One key feature of mutual funds is that they automatically correct the amounts in accordance with inflation. Mutual funds are professionally managed, tax-efficient, and also have a provision of working with smaller amounts. They are ideal for saving money for key milestones in your life like your child’s education or marriage. Investing in mutual fund schemes in the name of your child (no age limit) without any restriction on the investment amount can prove highly beneficial in the future. 

Insurance Policies that include Partial Withdrawal Plans

You may have invested in different asset classes to achieve good financial planning for your children. It’s equally important to have adequate insurance cover, to tackle unforeseen circumstances and dangers in their lives. While you’re at it, it never hurts to be well prepared for emergencies. Make contingency plans and put together a child education fund that helps you overcome your financial crunches easily. Choose to invest in such funds that at times of emergencies, they come with a provision of partial withdrawal. 

One of the most prudent financial instruments in the markets you can opt for is unit-linked insurance plans (ULIPs). They offer the dual advantage of both insurance and investment. ULIPs invest in the market through various funds of varying degrees of risk for long-term wealth creation and Partial withdrawal is among the several advantages offered. It allows you to withdraw money for your needs from the accumulated fund value.

Review your financial plans from time to time

Make it a point to review your financial strategies periodically to ensure better financial planning for your children. By doing so, you’re more likely to account for the factors that may eat at your potential savings in the future otherwise. You can account for an inflation rate change, cost of living change, and much more by reviewing your portfolio from time to time. Also, remember to rebalance your portfolio at the end of each year. Rebalancing essentially boils down to selling an outperforming asset and investing the proceeds in one that is underperforming.

One final piece of advice – five years before your goal, start shifting your money out of equities to the safety of debt.

Final Word

Financial planning for your children in the future goes far beyond just keeping aside money for their future. It’s important to invest wisely so that you double or even triple the amounts you keep aside for them. Start instilling the habit of saving in your children. Let your kids understand the worth of money so that they start spending wisely from childhood and help them understand the value of hard-earned money.

In the case of poor financial planning for your children or need for more money, you can always go for School FeES – a tuition fee loan provided by EarlySalary designed to ease the burden off parents’ shoulders.

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Know The Difference Between Credit Lock And Credit Freeze

Who isn’t worried about scammers opening credit card accounts or loans in their names? Especially after the famous data breach at Equifax in 2017, exposing the personal information of 147 million people that garnered worldwide media attention? And when scammers open these accounts, they can run up purchases or open loans in your name and not pay them back. This can leave you with credit card debt which can eventually make you go bankrupt, or negatively affect your credit reports, affecting your ability to acquire loans and other forms of credit in the future.

Luckily, there are ways to protect your credit reports from these swindlers; two of them being a credit freeze and a credit lock. The terms “credit freeze” and “credit lock” are used interchangeably, and understandably so because they offer similar protections, but there are some minor differences to them, which we’re going to cover in detail below.

What are the credit freeze and credit lock?

Both credit freeze and credit lock restrict access to your credit report and thus help protect you from identity-theft-fraud. When you lock or freeze your credit, lenders or creditors are restricted from accessing your credit file. You need to get in touch with all the major credit bureaus to either lock or freeze your credit. The main Indian credit bureaus are CIBIL, Experian, Equifax, CRISIL, ICRA, and CRIF High Mark. 

How to freeze/unfreeze your credit

Step 1: Initiate a freeze with each of the major credit reporting bureaus (often CIBIL)
Step 2: Provide your personal information.
Step 3: Receive a PIN which is used to later thaw/unfreeze your credit.
Step 4: Manage your credit freeze/unfreeze.

If you cannot supply your PIN to unfreeze your credit, the freeze can still be lifted, but additional identity verification will be required. Credit bureaus are required to freeze within 24 hours of receiving a request and must lift the freeze within one hour following a request. The process of freezing your credit information is free under federal law and does not require any fee. 

How to lock/unlock your credit

Step 1: Download the credit bureau apps or visit the websites.
Step 2: Log in with your username and password.
Step 3: Lock/unlock with just a tap.

Unlike credit freezes, credit locks let you control the access to your credit reports directly, via smartphone apps or a secure website. This is an easier and temporary way to protect your information with no delays for a brief period of time. Credit locks make it easier to unblock your data when you want a lender or creditor to be able to check your credit.

Credit Freeze vs. Credit Lock

Why a Credit Freeze Is a Better Choice

Credit locks are quicker and more user friendly than credit freezes. However, in most cases, putting a freeze on your credit is a better way to protect yourself from fraud. Here’s why.

  • Credit freezes are regulated by federal law. This gives them an upper hand in the aspect of security. On the other hand, credit locks are governed by a contract between you and the credit bureau(s). Credit lock contracts might have terms and conditions that aren’t favorable to the consumer, like arbitration clauses that prevent you from participating in a lawsuit, for instance. Also, if a fraudster accesses your credit file while your freeze is in place, you’ll have better protection against liability. 
  • Credit freezes are free. Credit freezes are a better cost-effective option, considering that they’re free and provide better security when compared to credit locks that are expensive (you’ve to pay a monthly fee) and are less secure.

Final Word

Now you know the difference between a credit freeze and a credit lock. Decide which one would work best for you. If you’re a person who opens new credit frequently, credit locks would be much easier in managing your credit access information. However, credit freezes are cost-effective and the secure option to go for. As a habit, checking and examining your credit report frequently can help you detect any fraudulent activities before any damage is done. 

If you need a personal loan and your credit is locked or frozen, there are instant loans available at EarlySalary, where your credit reports matter little.

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A Quick Guide on Personal Loans for Salaried Employees

With the business world being taken up by a storm of young professionals, it is an obvious corollary that their personal needs and aspirations are on the rise as well. In today’s time, more and more people are resorting to taking personal loans to fulfil their short term and long term needs and aspiration: be it the vacation to your dream destination or buying that really expensive item that you have had in your shopping cart for ages but never thought that you could afford.  

Arguably, a personal loan is a one-size fit all solution to all your uncategorised and contingent needs. And with the advancement in the fintech sector, it is easily available too. To know more about what exactly personal loans, refer to our earlier blog here

The best part about getting a personal loan is that more often than not, they are unsecured loans, i.e., you don’t have to furnish collateral to get it and also that you can utilise for whatever purpose you want, without having to take the bank’s permission for it. 

How exactly to get a personal loan

There are 3 major avenues that you can explore to get yourself a personal loan. They are: 

  1. Through a commercial bank 

That is the most popular way to get a personal loan that most people know about because almost everyone has a bank account. Most of these banks have a standard procedure to grant these loans which involves standard contract, paperwork and a rigid repayment option. 

2. Through a co-operative bank

Even though they operate it at a much smaller scale as compared to commercial banks, these banks are more popular with the rural population. Since these banks are not driven by profit motive, they offer a lesser rate of interest and more flexibility in repayment options. 

3. Online lenders 

This is one of the most up and coming avenues for getting a personal loan easily. A lot of NBFCs offer an instant personal loan with quick disbursal, low interest rate and flexible repayment options. 

Even though you can avail a personal loan from any of these avenues, there are several factors you have to take into account before you zero in on one of these particular options.  However considering some of the major factors listed below, a personal loan from an online lender like EarlySalary seems like a better deal than a traditional bank like State Bank of India, Punjab National Bank among others. Some of the clear advantages of getting a loan from an online lender like EarlySalary are: 

  • Quick disbursement of amount 
  • Instant loan of upto 2 lac rupees 
  • Low rate of interest 
  • Flexible repayment options 
  • Unsecured loan which means there is no need for any collateral 
  • Does not hamper your credit score and in fact can help you boost it 

To know more about the advantages, refer to one of the earlier blogs here.  

How to apply for Personal Loans of EarlySalary for Salaried Employees

Since it has already been established that taking a personal loan from an online lender like EarlySalary is not only easier, it is also beneficial in the long run, what remains to be seen is how salaried employees can opt for it. 

Firstly, the salaried employee can apply for it on an individual basis. The process is simple and quick. All you have to do is visit the EarlySalary website and follow the 4 simple steps given in the picture to get your instant personal loan. 

Secondly, the employers, who are conscious about their employees’ financial wellness, can integrate it with their financial wellness programme and offer this service to their employees at a very cheap rate. 

In today’s time, employee satisfaction is amongst one of the top priorities for the organisation as it has a shown irrefutable correlation with their overall productivity at work. It has been found in multiple surveys such as than of American Psychological Association and Northwest Mutual that financial stress is the #1 stressor for young professionals, which throws them off their duty to achieve the organization’s goals. So, a good financial wellness program is the key to being a successful corporation, in sync with what the employees expect out of it.  To know more about what a good financial wellness program contains, refer to one of our earlier blogs here

So, any futuristic corporation should have an integrated financial wellness program in place, just like all the successful companies do. However, since putting up together a lot of variables and contingent factors, you can leave the planning part to a team of experts at  EarlySalary and let us take all the problems related to all your employee’s financial wellness needs! 

Save Yourself from Debt This New Year Shopping Season

Another year has gone by and ’tis finally the season to be jolly. It is that time of the year again when people buy gifts for loved ones and also make important purchases for themselves that they may have been putting off for later this entire year. Stores are decked with holly, tinsel, and holiday wreaths as they gear up for Christmas and New Year sales. But for customers, this also means spending a lot of money, oftentimes too much to fit into our budget. So what are the best ways to save yourself from debt this festival shopping season? Let’s have a look.

#1 Plan out a Budget

This not only includes making a list of all essential purchases but also estimating how much money you would need for the shopping. Compare this with how much money you can afford to spend and how much you can feasibly borrow without going to a large debt. 

#2 Look out for the Best Deals of the Festival Shopping Season

Pretty much every store puts up Christmas and New Year sales and exclusive deals during this season. For example, the e-commerce giant Flipkart is offering a 10% instant discount on SBI credit cards and in addition to various other product-specific discounts. Amazon too is offering 10% instant discounts on HDFC bank cards. 

E-commerce websites also offer no-cost or low-cost EMI options that can help customers pay over a longer period. For some gadgets and appliances, there are exchange offers available that can help lower the costs if you exchange your old gadget for the same, provided all conditions are met. Moreover, online wallets such as PayTM are also offering cashback and discounts on various purchases if payment is made via these wallets. 

#3 Compare Prices

The same product may not cost the same in all stores. Therefore, comparing prices across all major stores is a good way to get them at the lowest price. While comparing prices, also factor in the discounts and cashback offers available due to the payment methods. Keeping track of these prices and offers can help customers reduce the overall cost of their purchases.

#4 Redeem Reward Points

Many stores offer loyalty points or reward points that can be used for future purchases. Reward points are also offered in many credit cards and debit cards which can be redeemed for various offers such as Amazon or Flipkart gift cards or mobile recharges. Make sure to make use of these while they are still within their validity period.

#5 Explore Instant Credit Options

Instant credit options such as EarlySalary offer a great way to get hassle-free and affordable credit via an online application process. EarlySalary also has special personal loans such as shopping loans for Amazon and Flipkart. There are low-cost EMI options available and repayment options are flexible, allowing customers to make purchases while the festival shopping season discounts still last. EarlySalary users may also have access to exclusive discounts during the Amazon sale.

Conclusion

Like everything else, the holiday shopping season also requires adequate planning if one intends to manage their finances well and not fall into debt. And the end of the year is the perfect time to jot down your financial plans. After taking all these steps to save big during the sales, customers must still keep a record of the same and compare it with the budget initially planned. Analyzing your savings will also help you to figure out what worked and what did not and consequently help you make better shopping decisions in the future as well.