When you’re living in a metro city on a fresher’s salary, month end blues aren’t an uncommon thing. At such a point, walking right into a financial emergency or a big-ticket expense can wreak havoc on your beloved bank account. Asking friends and family is always an option but can often seem embarrassing. On the other hand, credit cards may not even give you a very high limit on a fresher’s salary and have rigid repayment terms coupled with the fact that payment failure can gravely impact your credit score at the beginning of your career.
Taking a loan advance against your salary and paying it off when your paycheck comes in, could be a pretty good solution in such a situation. With new age borrowing options like salary advance apps which are quick in disbursal and easy to use, it could take only a day to allay you financial crunch unlike the long procedure and excessive formalities of a personal loan.
Some of the popular instant loan apps that have caught up with the millennial crowd in India include EarlySalary, Money Tap, India Lends, Lazy Pay inter alia. It’s best to survey the terms and conditions of each of the apps to make a choice that suits your requirements in the best way possible.
EarlySalary, however, offers significant advantages over its contemporaries and has fast grown popular as a salary advance app as compared to the above.
How EarlySalary Works
EarlySalary’s customer assessment is conducted on the basis of your particulars and what it calls your ‘Social Worth Score’. It does not require a guarantor or collateral. The process merely involves competing for particulars and uploading documents online and does not require any queues or hassles to be dealt with. While the first loan disbursement may take up to a day, future loans are disbursed within minutes.
The best part is that even newly salaried employees can avail loans as salary slips aren’t demanded as part of the particulars. Check out the advantages of Early Salary in depth here.
The Application Process
You need to simply log onto and register via the app. It takes only a few minutes to upload basic particulars like your identity proof, address and bank details for the last three months.
Generally, the eligibility criteria for these apps require you to be an Indian national, a graduate, a job holder for at least three months and have a monthly income of over a certain level, in this case, INR 18,000.
The remaining documents including PAN card and a cancelled cheque from the salary account can be conveniently uploaded after the loan has been approved.
Dynamic Borrowing Limits
One of the best parts about borrowing through the app is that it allows you dynamic borrowing limits. All of your borrowing limits show up on your dashboard after having updated your particulars.
Having separate limits for urgent expenses like medical emergencies and separate limits for your shopping needs means one is not binding on another so you can easily pay that sudden hospital bill without compromising on your want of the latest iPhone.
EarlySalary charges are as low as Rs 9 per day for loans equal to or less than INR 10,000 with no hidden charges. The amount is deducted directly from your salary account when due or you could also choose to prepay through the EarlySalary mobile app. The app also allows EMI payments spread over a period of one month to a year. With EarlySalary you can choose a favourable repayment schedule as per your repayment capacity using our loan calculator.
However, you must go through the terms and conditions to pay close attention to each clause, processing fees and other charges to choose the most cost-effective option for yourself.
Also, unlike bank loans, there are no fines and prepayment charges on early repayment.
Unlike banks, you can avail unlimited loans throughout the year if you’re regular in repayments and have a good credit score. So one month you could be borrowing for actualising that Ladakh trip with your buddies and another you could be borrowing for the short cash to pay rent. As long as you repay on time, EarlySalary’s got your back no matter what your next need.
What if you need something long-term?
The company has introduced longer tenure products for established clients last year which offer loans with a tenure of 3-12 months based on the long-term behavioural scorecard of the borrower. The products include
1. A 3-month EMI option on a loan double the monthly salary
2. A loan up to four times the monthly salary with a 12-month repayment period Learn more about EarlySalary’s long-term loans here.
Salary advances and instant loans can go a long way in ensuring that you are able to tide over any gaps in finances in the most hassle-free manner and can easily make repayments as soon as you come into cash.