The Finance Behind High Employee Engagement

By : Dhruv Anand – AVP & Head Talent Management, Netmagic Solutions

In today’s times of intense career mobility and attrition, if an organization does not give its employees enough reasons to stay, or worse, gives them reasons to leave, employees are fairly likely to move to employers who will keep them happier. While employee engagement is quantified in various methods but very limited correlation to financial performance, Employee Engagement certainly has a huge impact on the finance of any organization or business. Employee engagement, and how it is handled could differ from company to company. While a lot of organizations want to see their employees content and satisfied, some top-tier companies strive hard to keep the enthusiasm of their workers alive.

How does employee engagement affect the company finances?

Even before entering into the workforce, prospective employees have a certain vision of the place they would like to work at. The atmosphere and treatment meted out to employees plays a significant role in attracting workers. All industries are experiencing a stronger need to prioritize their workplace culture in order to retain their best talent. A disengaged and disgruntled workforce can damage the culture. Financial drainage is also seen in the form of salaries and benefits given out to these employees. Such employees are more likely to leave the company making it necessary to find replacements. This is a triple blow to time, money and productivity of the management.

An engaged workforce, on the other hand, reduces financial drainage and positively impacts the business. There is a reason why top companies like Google and Facebook focus on non-cash rewards such as flexibility, work content and a comfortable office space with activity centres. Your environment acting as an engager and a good work environment is often fundamental for employees to work without too much stress, in turn increasing their productivity and thus financial revenue.

Retaining your best people through financial benefits and compensations

In addition to the base salary, it is important to show your employees that there are other monetary benefits and rewards for them in the organization. Smart employers are aware that keeping a high quality employee comes with a high compensation and benefit package, which is worth every penny due to the superior value delivered. Financial benefits sweeten the employment contract with surprises workers wouldn’t generally expect.

It is also critical to ensure proper communication with your employees. While financial benefits are important, a homely and comfortable work environment along with recognition goes a long way in helping retain your best workers. Employees often talk about their holiday bonuses or follow their stocks closely because they have stock options. This kind of compensation also gives the workers a stronger sense of satisfaction when the company succeeds.

The role of financial literacy and financial wellness

Economic and monetary issues have become very critical for today’s employers. Millennials are spending as much time as they can at the workspace in order to pay their bills and debts for even the most basic utilities. This increasing amount of stress often ends up hampering their productivity and lowers engagement inspite of best efforts from employer. With this mounting stress and uncertainty, organizations are now playing an active role in easing the financial situations of their employees through a variety of possibilities, sometimes through the forms of rewards. This could be through food vouchers and coupons, sponsored trips with family inorder to destress during the weekend, or even movie tickets.

These factors have gone a long way in motivating employees, easing their situation and ultimately retaining them. Organizations have realised that helping their workers in turn boosts their revenue, thus making it a win-win situation.

Getting New Joinees To A Good Financial Start: The How-To Guide

With millennials’ increasing dependence on credit options in order to live their life, financial education is more critical than ever. While financial literacy has of course, a directly positive impact on employees, it also benefits employers is more ways than you may imagine. Strong financial education and better financial management skills result in employees less likely to end up with financial woes and stress – or in other words – more likely to end up as increasingly productive parts of the workforce. Lower attritions are a consequence as well if there are fewer financial hardships and fewer requests for salary advances to deal with. Financial stress can affect the workplace in many negative ways, by directly impacting productivity and causing more anxiety at the workplace.

Educating employees about their finances is also a good way to exhibit a truly people centric organisation culture – the organisation moves forward if its people move forward.

New Joinees: The Basics

Companies are often seen hiring new employees during a certain time of the year (and sometimes even throughout the year), be it through on-campus hiring, or off-campus drives.

As the business scales, manpower needs obviously increase. When a percentage of the workers retire or graduate to managerial positions, young graduate students are often recruited to fill this gap. Younger employees tend to be more enthusiastic, with stronger learning ability and are more up to date with current technology. They also have fresh ideas and newer perspectives that can bring an added value to the organisation. They also do not tend to cost the company as much.

Sometimes, employers hire a certain group of people due to their unique skill, such as a cloud computing specialist, or a web developer. Their ability to do the work in a short amount of time with great efficiency reduces the overall cost to company and increases their profits.

Thanks to the digital age, recruitments are not as tedious for the employers as they used to be. With job roles becoming more specific even at the lowest level, candidates are screened out automatically. While online recruiting is very effective, it is also important that your new hires transition into their workplace effortlessly.

The Criticality of Financial Wellness For Employees

Employees spend a third of their day at their workplace. Naturally then, it is critical that they look forward to it – and that is accomplished when the organisation is careful to cater to their needs – physically, mentally and financially. The three are often very closely connected, however, employers are often significantly responsible for financial wellness:

  • Funds play a very important role in their lives and a lack of them is likely cause a number of problems, including disruption of physical and mental health.
  • With increasing stress and workload at workplaces, employers are now taking the financial wellness of their employees more seriously. The average worker today, before even starting their job, typically brings with them significant debt in terms of college loans and personal loans that need to be paid off.
  • Organisations have fortunately begun taking an active interest in improving the everyday financial situation for their employees. This need not be directly in the form of money. Food vouchers, sponsored trips or even simple spa and movie tickets are given out regularly as morale boosters.

A Good Financial Start

Benefits and bonuses are a lot more regular and simple now with the onset of the digital era.

  • Employers have tried to lighten any financial burden through tie ups with online loan apps or extending personal loans and salary advances themselves.
  • Companies are also issuing corporate credit cards to reimburse any excess expenses carried out by the employee for the organisation. This could include travel expenses and client meals.
  • Several banks, including State Bank of India, and ICICI Bank have extended their support to a prepaid card model. Expense management brands have also created prepaid cards for business purposes, so employers can get their money reimbursed easily.

Companies have come a long way as far as financial wellness is concerned, from team outings to regular bonuses and festival gifts, employers are going out of their way to ease the financial stress of their employees by fulfilling experiences. Tie ups with leading salary advance apps, such as EarlySalary also ensure that workers can obtain salary advances and personal loans at an affordable interest rate without much hassle and paperwork. It’s a good time to be part of an active workforce!

Loans – A Healthy Credit Score and its Benefits

A credit score is an important factor in one’s financial life. It is a three-digit number that financial organisations use to determine your likelihood of repaying a debt. Your credit score is based on your credit history, a record of all your past loans and credit transactions which assesses your ability to repay debts. Credit history includes information regarding your bankruptcies or collections, and all this information is recorded in a credit report. A credit score is usually a number between 300 to 850, and the better the score, the more likely that banks would approve for loans or a credit card. While it is possible to survive on a relatively low credit score, it makes your financial life unnecessarily difficult, and it is always better to have a healthy credit score.

What is a healthy credit score?

A credit score is calculated differently by different banks and financial institutions, but a good credit score, as well as the factors deciding how high your score is, are usually the same in most methods of calculation. A credit score ranging between 650 and 750 is considered good, while one between 750 and 850 is considered exceptionally good by most financial institutions. Such a healthy credit score is achieved by timely loan and credit card repayment and also regular bill payments.

Benefits of a healthy credit score

A healthy credit score has a lot of benefits in several aspects of one’s financial life, much beyond getting a credit card approved. Here are some of the major benefits of having a good credit score.

Higher chances of credit card and loan approval

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A bad credit score indicates a poor repayment record, and not many banks would take the risk of giving you credit since your record indicates that you don’t repay loans on time. A good credit score, on the other hand, indicates that you repay loans and pay your bills on time, which makes you credible in the eyes of financial institutions. It shows that you’re diligent and responsible about paying your bills and there is lower risk in taking you on as a borrower. Hence, banks and other financial institutions are more likely to approve your credit card or loan applications if you have a good credit score.

Faster loan approvals

A long wait to get your loan or credit card approved is always a hassle. Your credit score determines the speed of approval of your credit applications. Loan applications of people with a low credit score undergo more thorough checks and hence take longer to approve (if they get approved at all). In contrast, several lenders offer pre-approved loans to people who have an excellent credit score coupled with a long credit history. This means that if you have a healthy credit score, your loan is likely to get approved fast, sometimes even immediately.

Lower interest rates on credit

Whether on a credit card or a loan, high-interest rates are never good for your finances. In a recent development, several financial institutions have started offering tiered interest rates based on your credit scores, meaning that the interest you pay on your credit cards and loans is directly related to your credit score. A healthy credit score usually ensures lower interest rates on loans. Further, a good credit score will help you qualify for better credit card deals with lower interest rates, rewards and cashback.

Easier approval for house rentals

Just like a bank or lender, a landlord may look at your credit score before renting you their apartment. A good credit score not only means that you repay your loans on time, but it also shows people that you’re regularly paying your bills, making you financially trustworthy. Getting your dream apartment would be much easier if your landlord can see through your credit score that you’re likely to pay your rent on time every month. If you get an apartment on a bad credit score, the landlord would probably charge you a higher security deposit to ensure that you pay the rent on time.

Lower insurance premiums

According to insurance companies, people with a bad credit score tend to file more claims than those with higher credit scores. Most insurance companies consider risk very carefully before offering insurance. While your credit score cannot determine whether you get insurance or not, companies tend to charge higher monthly premiums to people with low credit scores. However, some states in the USA like Massachusetts, California and Hawaii ban insurance companies from setting prices based on credit scores.

A good credit score has several benefits, including, but not limited to, a better likelihood of loan approvals. The benefits also include better credit card deals, better chances of landing your dream house for rent and even lower premium on insurance policies!

Employee Benefits in Today’s Digital Age

Employees today increasingly look beyond money and job satisfaction – they look for additional benefits, too. A generous employee benefits package is an essential component in attracting and retaining the industry’s top talent. Glassdoor’s Employment Confidence Survey in 2015 found that about 60% of people consider benefits and perks a significant part of deciding whether to accept the job, while 80% of the employees would prefer to get additional benefits from their employers rather than a pay raise. While multi-billion-dollar organisations like Google and Twitter offer the most attractive perks including yoga classes, massages, etc., not all can afford them. For such companies, the good news is that not all benefits are expensive. The benefits that make employees happiest come at relatively low cost to the employers, like flexible hours, more paid vacation time, and work-from-home options.

The digital revolution has made everything evolve vastly from the situation just a decade or two ago. So it comes as no surprise that employee expectations and benefits have also evolved and are markedly different in today’s digital age than they were before. For instance, working-from-home was practically not an option, and neither were flexible work hours, with no secure means of communication to manage either. Other aspects are different now too – like the fact that medical expenses and college tuition costs are hitting the roof, making related benefits attractive to employees. With the increasing significance benefits have, even over a higher salary, it is becoming essential for employers to understand employees and their issues and give them attractive benefits and retain a skilled workforce.

History of Benefits

Employee benefits first came into the picture in 1636, when the first pension law was enacted in Plymouth (part of what is now Massachusetts).

  • This was followed by the first profit-sharing plan proposed in the US Marine Hospital Service more than a century later, in 1797.
  • The 1800s saw notable developments like the first private pension plan, the first group insurance policy and the first wage payment law.
  • The 1900s saw many new benefits plans, where employers became more proactive in giving their employees incentive to work with them. This, combined with separate government initiatives including health and retirement programs and other incentives, resulted in a new era of employee benefits.
  • Notable developments in the 1900s include the introduction of workers’ compensation and the minimum wage law. Other benefits in the earlier days include employee stock purchase plans, paid leaves, severance pay and services like canteen, transport, accommodation, healthcare, etc.  

While some of these benefits continue in today’s digital age, some are now obsolete and do not offer the same value. Employee benefits are essentially meant to attract and retain employees, and employers will need to keep up with the times and offer employees the benefits they desire if they wish to retain talent.

Importance of Attractive Benefits

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source: Patriot Software

Multiple studies and surveys have indicated that a majority of salaried employees prefer better benefits and perks over a pay raise:

  • A 2016 survey by Aflac found that having a benefits package is extremely or very important to their employer loyalty for 60% of employees. According to the same survey, 36% of employees say improving their benefits package is one thing their employers can do to keep them in their jobs.
  • Another survey by MetLife in 2017 indicated that 72% of employees said that the ability to customize benefits increases their loyalty – meaning that employees prefer to choose benefits to match their lifestyles.

Of course, this leads to lower attrition, amongst many other business advantages – such as better productivity, and better attendance. Finances, family commitments, and health issues are the major reasons for absenteeism, and these can be taken care of via benefits like flexible work hours and health benefit plans.

Benefits Desirable in Today’s Age

While some benefits of earlier times are no longer popular, some are given a great deal of importance. These benefits include:

Medical Insurance

With medical costs skyrocketing globally, health insurance and medical benefits are becoming increasingly important to many. These are one of the most expensive benefits to provide, but they remain the most desired for employees.

Retirement Plans

The youth of today are increasingly aware of their future and wish to start their retirement plan as soon as possible, understanding that it is important to ensure survival when they can’t earn anymore. So attractive retirement plans are quite important as benefits go.

Paid Leaves

Increased vacation time and more paid leaves per year are certainly desirable to employees, with breaks a necessity rather than a benefit due to increased stress at the workplace. Of course, a lot of executives end up leaving vacation days unused. In such cases, employees can either carry forward their leave days into the next year or opt to cash-in on their leaves, depending on the company policy.

The above benefits have been around for a while, and are still important to employees. However, with the changing times, many new benefits have been introduced, the most desirable among them including:

Flexible Work Arrangements

Flexible work arrangements have only become feasible due to recent tech advances. With meetings possible through video conferences and clients just a call away, it’s become possible to only turn up for work when needed and spend unproductive work time doing something productive at home. Similarly, working from home is also possible in some professions, and these are the benefits many employees look for and even prefer over a higher salary package.

Fitness-related Benefits

With increasing importance accorded to stress relief and relaxation, workplaces have become more interesting and colourful, with places for fun and games, and even full-fledged gyms. As part of stress relieving initiates at workplaces, many employees desire yoga or fitness sessions, or well-equipped gyms at the office.

Student Loan Assistance

Education costs are now hitting the roof, and most students try to meet these costs by taking loans. While a high salary would definitely help to pay off these loans, freshers prefer loan or tuition assistance over a higher paying job. Providing such benefits might be costly, but companies can use it to their advantage and avail tax benefits on tuition fee provided to employees. Services like School FeEs from EarlySalary are tuned to meet exactly these needs.

Financial Wellness

Investment is an significant factor in building one’s savings, and the youth of today is realising this fact faster than previous generations. However, a large number of people remain financially unaware and have no clear ideas as to where to invest or what kind of investment would bring them the best returns. In this situation, a benefits package which includes financial advice, investment assistance and help in financial management is highly desirable.

In today’s fast-paced digital age, employers making work easy for them is accorded a higher priority rather than a higher salary, although good pay certainly remains desirable. Work-life-balance, as well as the reduction of some of its related stress through financial benefits plans,  are coveted perks in the markets. Further, employees also like to be cared for, and attractive benefits packages show that the employers care. Employee benefits are, therefore, very important to attract and retain a skilled workforce.

LOOKING BEYOND MONETARY COMPENSATION: WHAT EMPLOYEES OF TODAY NEED

We have all, at some point in our lives, come across theories or studies raising questions about what motivates employees and have, more often than not, found the answers to be money and job security. None of these studies, however, can be expected to be 100% accurate because every individual is different and so is what motivates them.

It is also not easy for an organization to understand such individual motivations, especially with a new generation of millennials who desire more than just monetary compensation or the security of a job – attributes which were, without a doubt, highly valued by their predecessors. That does not mean that they consider these attributes unimportant. While they definitely feature high on the pyramid, there’s plenty more that’s joining the queue.

The first of the many changes in employee attitudes is that individuals today desire happiness from their jobs rather than looking at it simply as a source of earning. With the increasing tech advancements, machines are being employed to complete the routine activities and humans are left to follow their passions. Employees are becoming increasingly particular about the job roles they adopt and want to ensure that it gives them a sense of contribution and satisfaction. They are willing to invest in developing their skills and to learn new job aspects to help them remain relevant to their job roles.

The second change, which is in turn an influence on job satisfaction, is the need to be respected. Employees of the current generation no longer want to be treated as novices or be beaten down simply because the person on the opposite side is several levels higher in the organizational hierarchy. This does not mean that they are arrogant or overconfident – they seem to be simply looking for fair treatment. Millennials understand the importance of experience and are willing to learn from those who have been at the job longer than them provided they are recognized for their superior work and individual talents in concrete ways.

The third change that has come about is the desire for work-life balance. Individuals today are no longer getting married at an early age which leaves them with a source of income minus the responsibilities of family life. This combined with the increasing number of entertainment options is improving what is commonly known as the ‘social life’ and ‘experience building’ of an individual. Read more about millenial spending trends here and here.

Today’s employees want to spend just as much time watching an episode of Game of Thrones or going on a solo backpacking trip across Europe (did I mention you could avail instant cash loans for travel purposes from Early Salary?), as they do looking at a spreadsheet in office. Add to that the daily traffic congestion that lines every metropolis during commutes, and you have a whole huge bunch of people preferring to work from home whenever possible.

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The fourth change is the desire to control their work methods. Employees today want to be able to decide themselves how, where and when the work gets done. This is not to say that they shy away from deadlines or compromise on the quality of the work but is more about the autonomy they seek to be able to decide whether the work takes two hours or two days and to judge themselves whether the output they are giving is the best they can do.

These changes, though not exhaustive, are some of the most significant observations among the millennial employees. They are also a common reason why many from this generation today are seeking entrepreneurial activities and unconventional careers despite the high risks involved rather than the evergreen pastures of a 9 to 5 job. For leaders wanting to retain their best talent, starting to streamline compensation, benefits and work style to accommodate these changes would be a wise move and go a long way in attracting and retaining the current crop of enthusiastic and bright millennials.

Credit Cards versus Instant Cash Loans

With the high rates of inflation, people today are often living end to end, with a very small percentage of their money headed into savings. In such scenarios, it is impossible not to rely on credit cards or loans to pull through the month. Even for regular expenditures including food and weekly entertainment, millennial’s have now started relying on credit. The concepts of instant cash loans and instant online personal loans are also gaining popularity and are looked at as means to pay off your expenses and keep them under check.

Young employees and fresh graduates are often faced with a dilemma while borrowing: Credit cards or Cash Loans. While both have their own benefits and you cannot go entirely wrong with either, it is important to know which option is better suited to your situation.

#1 Limit of Borrowing and Rate of Interest

The quantum of money you require often determines whether you should go for a credit card or a cash loan. If the quantum isn’t too much every month, it may be better to go for a credit card. Regular borrowing and paying off credit will assist in improving your credit score as well – a prerequisite for most bank loans. However, if you wish to use a large amount of money (not necessarily every month) for non-regular use, such as buying a new mobile phone, or paying your daughter’s annual tuition fee, an instant cash loan is the obvious choice. They offer low rates of interest and thanks to digitization, instant cash loans are now more easily available without the hassle of rigorous paperwork and the strenuous wait period. EarlySalary, for instance, allows you to apply for a cash loan through their app with a confirmation within 8 to 24 hours.

Banks charge an exorbitant interest on credit card usage

#2 Time taken to pay off debt

Credit cards have a relatively high rate of interest, and while they are simple and easy for small expenditures, you must make sure you pay off the debt in time. A recurring rate of interest could almost double your debt if not paid off in time. Gauge the time you would require to pay off the debt – if the time frame is more than 3 months, instant cash loans will save you money. Most instant cash loans allow you to pay back the money within a 6 to 12 month period with a nominal interest charge. On most instant loan apps, the repayment policy is flexible and allows you to decide the payment schedule depending on your convenience.

#3 Spending habits

Credit cards have lucrative entertainment deals associated with them, however, if you tend to overspend and have trouble resisting temptations, these deals could be your downfall. A little control could go a long way when it comes to using credit cards, however, it would also be unfair to dismiss the benefits that come with them, such as accumulation of miles during flight travel, lounge access and cash-backs on most purchases. Hence for calculated spenders, a credit card could be extremely useful, not just for your cash shortages, but in your daily life in order to redeem and receive rewards.

#4 Credit score

A lot of earning folks are unaware of what a credit score is and how it is important for your finance. In traditional banks, your credit score is almost always the only thing standing between you and your loan. Any kind of traditional loan requires you to have a credit score and a higher credit score reduces the interest levied on your sanctioned loan. While most young employees become non-eligible for loans due to their poor credit score, instant loan apps are addressing this problem by evaluating customers based on a combination of their credit score and social worth score. Your social worth score depends on your social media presence and whether you know/are interactive with people who have previously defaulted their loans. In any case, it would be juvenile to ignore your credit score. Your credit score, whether bad or non-existent, can always be improved by borrowing and subsequently paying off credit frequently.

Percentage indicates fraction of new loans sanctioned
While it is evident that different kinds of people would be able to handle the two kinds of debts differently, credit cards have always been associated with more risk and interest payment, and hence most borrowers, independent of age and occupation, tend to prefer cash loans. Instant loan apps in India have made it easier to apply for instant cash loans if you have a monthly salary. Over the past few months, the hassle-free and speedy procedure of applying for loans has secured a lot of happy and trusting users for EarlySalary.

What is a Salary advance and how it is different from a Personal loan?

With the rise of new age borrowing sources, the consumer finance space is delivering a wide range of options across segments to its customers. Salary advances and personal loans are some new age borrowing options for retail consumers that offer credit without collateral to salaried professionals. Let’s take a closer look at both:

Salary Advance and Personal Loan

A salary advance is a short-term loan extended to salaried professionals and can be used for any purpose. Personal loans, on the other hand, are extended to cover larger expenses over a period ranging from 1 year to 5 years. A salary advance is ideal for cash-strapped individuals who want quick loans to fund sudden expenses until their salary is credited. Interest rates charged on personal loans are generally higher than that on a salary advance.

A salary advance has the following advantages over a personal loan.

  1. Flexible Repayment

A salary advance, for example from EarlySalary, gives you that ‘extra’ money to sail through tough times. A salary advance also offers more flexibility than personal loans. The repayment tenure of a personal loan can put you in debt for as long as 5 years; given the uncertainty of life, this long term financial commitment may not be suitable for some borrowers and can create problems in the future. Non-repayment can affect your credit score and may also lead to rejection of your future loan application. While the repayment schedules are rigid for personal loans, with EarlySalary you can choose a favourable repayment schedule as per your repayment capacity using our loan calculator. A salary advance lets you borrow and repay in flexible EMIs. The repayment tenure varies from one month to one year. EarlySalary also allows you to repay the entire amount in one go without any foreclosure.

  1. Easy Application, Quick Disbursal

The most significant advantage of salary advance is the ease and quick speed with which the loan amount can be directly transferred to your bank account. All you need to do is download the EarlySalary app, share the requisite details and wait for 8 to 24 hours for approval and money transfer. The entire process is handled online and needs no paperwork. Personal loans, on the other hand, require more paperwork and are also time-consuming. Banks may take 7-15 working days to approve a loan and transfer the amount. Salary advance acts as a cushion during a financial crisis when money is required urgently.

  1. Credit Score

An essential requirement for a personal loan is a high CIBIL (Credit Information Bureau Of India Limited) score. This score cannot be built overnight. If you have recently begun your professional career then you may not be able to borrow the required amount of personal loan. With a salary advance, you can get a short-term loan up to Rs 2 lakh even at a lower score.

While metro cities provide career opportunities, they also hit your budget hard. Whether it’s a new apartment or the routine food and transportation costs, living in a metro city can be financially challenging. We may not be able to tide over short-term urgent money crunch despite conscious budgeting and savings. This is where a salary advance from EarlySalary can help. You can use this salary advance for assistance in a calamity, to pay bills or to make an investment purchase and then pay off with your next paycheck or EMIs. You can use a salary advance instead of a personal loan because oftentimes, it is cheaper to take a salary advance to avoid late fees, penalties and service disruption.
With no hidden charges and competitive interest rates that are charged only for the number of days you use the money, EarlySalary’s salary advance can help you prevent needing expensive personal loans and meet ends.

The Tax Advantages Behind Investments – Simplified

With the new financial year, came some really good news. With the new tax slabs, there is an opportunity for you to save your taxable income.

Getting a major chunk of taxable income out of the way by making the most of Section 80C is a great starting point for most of us, but even while dabbling in 80C deductions, play smartly and make sure you give precedence to tax-saver instruments with EEE (exempt-exempt-exempt) status that not only help you save tax, but also earn tax-free income like the evergreen PPF, ELSS with growth options over dividend options, Unit Linked Insurance Plans (ULIPs) so that your returns don’t add to your tax burden.


Beyond this:

  • Consider capitalising on up to INR 25,000 worth of tax deductions through medical insurance and purchasing National Saving Certificates (NSCs).
  • Further, you could claim deductions on contributions of up to INR 50,000 under Section 80 CCD (1B) made exclusively towards National Pension Scheme (NPS), and
  • If you use both 80C and 80CCD, a total of INR 2,00,000 could be saved from Income Tax.

But what if you’re just starting out in your career with a fresher’s salary but recognise the tax saving benefits you could reap if only you could invest in these specific instruments? Here’s why leaving your money in the bank isn’t such a good idea.

With those heavy rents and bills to pay, saving up enough to invest major chunks could truly be a challenge and we’ve all been through that phase. This is where external aid could come to your rescue. The internet has been burgeoning as a place to take care of all our modern needs and why should this be left behind either.

EarlySalary (available on Android and iOS) is a Pune-based, fintech portal that’s changing life for the average Indian by making possible convenient, affordable and fast lending from as low as INR 1,000 with interest rates starting as low as just INR 9 per day.  The best part is that these are no hassles and loans can be taken for any and every purpose including investments. Even newly salaried employees can avail loans as salary slips aren’t demanded as part of the particulars. To know more benefits of preferring EarlySalary, check out this post.

But why would I borrow when my returns would be eaten up by interest?

Tax benefits accrued on account of investments can go a long way in reducing your tax liability, leaving you with much more disposable income to begin with to take care of your interest requirements. The multiplier effect of more disposable income that can be reinvested to generate more money would eliminate the need for further loans to keep investing  soon enough and leave you with enough to plough back those benefits to keep investing without loans.

Still have concerns?

The fact that it’s so easy to obtain loans does make one wonder what the catch is and whether borrowing from such sources would be a good idea or not but EarlySalary is worthy of your attention. Running on a framework of a clear set of legal rules and regulations for borrowers and marking well against every existing industry standard including the Fair Practice Code for Non-Banking Financial Companies (NBFCs), EarlySalary is a trustworthy platform for young salaried persons seeking instant loans to seamlessly meet the gap in their cash requirements

So how does EarlySalary work?

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 completing 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.

Based on your score, separate limits are assigned to you for separate specific loan requirements and you can borrow according to your limit and set your repayment particulars. On becoming due, the amount is deducted directly from your salary account or you can also choose to prepay through the mobile app. Unlike bank loans, there are no fines and prepayment charges on early repayment.

Break out of the rut of planning your investments in tax saving instruments at the end of the financial year with EarlySalary’s instant cash advances, and plan ahead so you can chalk out a proactive, prudent investment plan that makes the most of your own and borrowed resources.

Fund yourself to travel in your 20’s

As a growing cohort of Indian population enters the working age, a substantial part of their disposable income is being spent on travel. Their reasons may vary, but what’s common is the need for self-preservation and a non-negotiable desire to explore the unexplored. This is why millennial’s are now integrating the passion for travel into their lives.

As the corporate world continues to witness an influx of millennials, many of them feel the need to escape the humdrum of life and travel to new destinations. The most important thing before any vacation is planning, and more importantly, expenditure approximation. In an era of easy and fast loans from apps such as EarlySalary, a slew of young travellers are now taking their advantage to enjoy international travels and frequent weekend getaways. In fact, as per a recent survey, salaried millennials in the age group 25 to 35 years account for nearly 12-20% of the total travel loan segment in India. As we’ve discussed in previous posts, this is because:

  • New age services offer quick loans online with minimum documentation.
  • They are cheaper than conventional options such as credit cards and,
  • Have a faster disbursement turnaround time.

However, travel is not limited to those adventurous trips. It can also be due to an unavoidable family emergency or related to health care issues of your own or your near and dear ones. Whatever your reason, money is an indispensable part of travel and the smartest way to meet a short-term fund deficit is through cash or personal loans.

In today’s times where youngsters have a zillion dreams, it may be easier to break free from time constraints, but a budget constraint is a bigger challenge. Let’s face it – being a salaried individual, it is not easy to save for travel when there are so many essential expenses to take care of. Even if you opt for cheaper lodging and transport, a considerable amount is nevertheless required for shopping, food, miscellaneous stuff. And you must always maintain sufficient funds for emergencies. This is where a personal travel loan comes handy, allowing you to create beautiful memories without giving up on your plans.

An instant salary advance from EarlySalary can be availed within 24 hours. You just have to download the EarlySalary app, upload your address and identity proof along with the last three months bank statement. The loan is typically approved and transferred within 8 to 24 hours of your application. There are no hidden charges. It is a hassle-free process and especially beneficial for youngsters who are always running against the clock. This loan may be used for both domestic and international travels. Quick loans may be used any way you want and require no disclosure.

The best part about quick loans is the flexible repayment tenure that may vary from one month to one year. The repayment structure depends on the lender policies, loan amount, loan tenure and applicant’s profile. Assess your needs and repayment capacity before signing the loan agreement.
If you too are a travel junkie, then do not let short-term money crunch clip off your wings. Apply for an instant cash loan from EarlySalary without collateral, take a break, enjoy a new destination, rejuvenate yourself and repay with easy and flexible EMIs.

EarlySalary – The Ideal Solution For Instant Cash Loans As low As 5,000

Facing the month-end or mid-month financial crunch and have a big expense just around the corner? Whether you need to cover expenses for an urgent home repair, grapple with an unexpected medical emergency, finally make that Goa trip you and your friends have been planning for oh-so-long or make that big ticket purchase you’ve been eyeing for quite some time now; instant cash loans and salary advances have made instant cash possible for many salaried employees just like you by offering loans as low as even Rs 5000.

While there are plenty of platforms offering this service, the fact that it’s so easy to obtain loans does make one wonder what the catch is and whether borrowing from such sources would be a good idea or not. Among the plenty of apps (check them out here) providing this service, EarlySalary is worthy of your attention. Running on a framework of a clear set of legal rules and regulations for borrowers and marking well against every existing industry standard including the Fair Practice Code for Non-Banking Financial Companies (NBFCs), EarlySalary is a trustworthy platform for young salaried persons seeking instant loans to seamlessly meet the gap in their cash requirements, even if it’s just Rs 5000.

Early Salary (available on Android and iOS) is a Pune-based, fintech portal that’s changing life for the average Indian by making possible convenient, affordable and fast lending from as low as Rs 1000 loans with an interest rate of just Rs 9 per day. You can seamlessly tide over any times where your pockets aren’t running too deep, whether you’re looking for a salary advance or an instant personal loan. The best part being that even newly salaried employees can avail loans as salary slips aren’t demanded as part of the particulars. To know more benefits of preferring Early Salary, check out this post.

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 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.

Flexible loans and repayment

You can borrow between Rs 1,000 and 2,00,000 and set a pay back period between 7-50 days. You set your repayment period and the amount is deducted directly from your salary account when due or you can also choose to prepay through the mobile app. Unlike bank loans, there are no fines and prepayment charges on early repayment.

Unlimited loans

Unlike banks, you can avail unlimited loans throughout the year if you’re regular in repayments and have a good credit score. The app also allows you dynamic borrowing limits. 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.

Pay with easy EMI with partner organisations

You could also avail easy EMI options on shopping with Early Salary partner organisations such as Big Bazaar, Amazon, Flipkart.

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

With Early Salary, don’t let your bank balance dictate your priorities.