Instant cash loans: We all need a Plan – B

Life throws us plenty of surprises, or even shocks – such as job loss, sickness or death of a family member. The perturbations that originate can leave a lasting impact on the family. While these shocks may be dramatic, even small currents can pile up and push us off-course. Even seemingly small financial emergencies can have an impact over the long-term. 

So the idea is to create a plan – a Plan B to cover against financial shocks and also to allow you to pursue your goals. Living a perfect life may be a pipe dream, but a plan B can certainly help you move closer to it by building an adaptive financial planning mindset. Read on to find more.

Do I Need a Plan-B?

Life is not just a series of unexpected events. There are some events we can see coming from a long way off. For example, your wish to gift your parents a vacation or to buy your child a new laptop is often left to the mercy of time. If you think its hard now and will be easier later, then you are fooling yourself. 

Inflation raises the uncertainty associated with our finances. As inflation increases, purchasing power goes down. However, that does not mean we should be completely at the mercy of chance. There is a need to make small yet significant changes in our lives in order to compensate for external changes in our world. 

Downsizing from a 2400-square feet apartment to a 500 square feet apartment is a big ask. Pulling out your children from a reputed private school or delaying putting them in a school you want them to study for the shortfall of money is not fair. What you can do from an early age is putting part of your annual bonus and a fixed proportion of your earnings in a separate account. Maintain this discipline and take on small consumption sacrifices now in order to avoid a gut-wrenching expenditure cut in future. 

We cannot control everything and no battle plan survives contact with the enemy. All we can do is make an attempt to smoothen the path. Our savings may not be enough to cover for financial emergencies and this is when instant cash loans act as a cushion. 

Instant Cash Loans: Plan B

Many of us may prepare to expect the unexpected, but of course that isn’t a fool proof strategy. Some threat or even opportunities, can come at us sideways. This is where an instant cash loan comes handy. The good news is that it does not even require you to cut down on your standard of living in half. A quick instant loan can be processed within 24 hours and the entire application process is online. 

The process is fairly easy – you can apply for an instant cash loan online on EarlySalary. Advance salary apps can end your cash troubles and also help in meeting emergency expenses until your next salary is credited. 

EarlySalary offers 24×7 quick loans without the pressure of repaying it under strict schedules. An advance salary app can turn around your life for the better in more than one way. Here are a few: 

  1. Easy Application, Quick Disbursal

Forget exhaustive paperwork. The EarlySalary app involves no physical forms as the process is supplemented with eKYC. Personal  loan approval may take 7-15 working days but an instant cash loan is disbursed within 24 hours of your application and approval. 

  1. Low-Cost Loans and Exclusive Offers

EarlySalary offers instant cash loans at nominal interest rates. Considering the inflationary trends in our economy, this translates into extra savings. You can also avail of additional discounts when you shop or book through partner brands such as BigBazaar and MakeMyTrip. 

  1. Flexible Repayment Terms

EarlySalary’s instant cash loans can be repaid fairly effortless, with easy repayment options. Their flexible tenure lets creditors consolidate their debt, schedule payments, pay off bills and meet other emergency financial emergencies.

Sudden surprises can be exciting and thrilling too. An instant cash loan can assist you in times of crisis, and also monetise limited period opportunities. A cash loan is an ideal plan B as it equips you to better absorb the stuff that’s thrown your way and get back to the things that are important!


Employee Experience: Why It’s Critical

Organisations are constantly brimming with different groups of people. These may be their customers, the suppliers, or their trading partners. They often keep into account how their experience has been while associating with their organisation, say the customer experience. Companies take particular care about it and devise various strategies to keep them satisfied and engaged. 

However, these orgs tend to forget about the experience of one important asset – their employees. Companies are content by just keeping their employees satisfied, which is inadequate in today’s competitive environment. We have moved towards working to making employees engaged with the organisation, to a much holistic term – employee experience. 

The employee experience is the collection of all the experiences or interaction an employee has with the organisation. It accounts right from the time when they were a potential employee, to the last minute in the organisation. It can assist organisations learn a great deal about the kinds of problems that the employees face, even the smallest issue that troubles them, to anything that gives them even momentary joy. 

There are multiple reasons why it is critical that employers continue to work towards building a better employee experience. Let’s take a look at a few. 

#1 – Retaining and Attracting Top Talent

Companies are always looking for talented and experienced employees. If your organisation can’t deliver well on good employee experience, your competitor probably will. Employees know the company inside out, so it’s best not to fool them with foosball-table-like perks, but instead, provide them with something valuable. If they know their skills are being productively used, and their contributions are being valued, they’ll want to work for the company for a longer time. 

It also helps with attracting top talent, as the older employees will put up a real picture of how the company works. This can only be acheivee if they have a positive experience. 

#2 – Changing Employee Priorities

With younger people joining the workforce every day, organisations have to adapt to  millennials. Younger employees look beyond paycheck and perks – they want a better experience. They want to be deemed significant to the organisation, they want to be seen and heard. This is a critical aspect of shaping satisfactory employee experience – hearing out your employees. Their ideas and suggestions are as valid and important as the ones by top management. 

Younger employees bring new energy and thinking to the organisation, and to keep them happy, organisations must work towards creating a wholesome employee experience. 

#3 – Improving Productivity at Workplace

When an employee gets a better experience, their productivity is likely to increase as a result. They may feel more involved in their work, and know that their work matters to the organisation. While designing an employee’s experience, the organisation should always consider aligning the goals of the employees with the vision and mission of the organisation. When employees work towards achieving their goals, they concurrently the company’s vision as well. 

#4 – Better Customer Relations

Employees paint the best and the most realistic picture of the organisation for the world outside. If they are satisfied with their work, they will undoubtedly talk it up. Employees may also be interactinv with your customers on a daily basis, and thus, their relations with the organisation can play a pivotal role in building a customer’s relationship with the organisation. Therefore, keeping the employees experience holistic and comprehensive is very critical and beneficial. 

#5 – Profitability 

Working towards building a superior employee experience can seem like expensive business, but it almost certainly isn’t. The results could quite possibly be the best return on your investment. When employees work towards making the organisation better, expect an increase in profitability as well. With better customer relations, positive word of mouth publicity, and even lowered costs. Employees have a larger impact on the profit of business than employers might typically think. 

Organisations would want to strive towards improving employee experience. After all, it does play a pivotal role in building the future and growth of the organisation.

Financial Wellness Programs: Why Does Employee Adoption Remain A Challenge?

Money has always been a cause of concern for people. The worry is not always about getting a bigger paycheck, but knowing how to manage finances and utilise funds for long-term benefits. 59% of employees say that their biggest cause of stress is financial or money related problems. 

But a question arises, somewhat understandably – why should an organisation worry about the financial health of their employees when they are already paying them? The reason is rather simple – financial stress induces sufficient distraction, and this can directly impact productivity, and of course, health. Stressed employees are likely to switch jobs faster as well.

To assist employees with their finances, organisations are now introducing Financial Wellness Programs. These programs are aimed at improving financial literacy among employees as well as helping them in practical finance matters. Financial wellness programs can often involve sessions by experts that offer advice on how and where to invest money, how to do retirement planning, or how to manage a financial crisis. 

Such programs also help employees build a better credit rating and managing their debt better. With one such load off their mind, employees will definitely be able to focus better on their work. However, even with organisations offering such programs, employees don’t seem to be adopting them at an appreciable rate. We shall discuss what can be possible reasons behind this. 

#1 – Not taking employee inputs

The most common reason can be that the organisation has devised the program without taking inputs from their employees, and so they don’t find it useful to adopt the financial wellness plan. If an employee doesn’t see the program benefiting them in any way, they will simply not take it up. This shouldn’t be a surprise.

To avoid such an issue, the first step when introducing a plan should always be to communicate to employees. What are their primary finance-related concerns? Are they worried about their retirement plans? Or is it credit card debt that seems to be affecting them? Only after an organisation is aware of the pressing issues, they will be able to address and solve them in their financial wellness programs. 

A wellness program should be tailored for a broad audience, since organisations are a diverse workplace consisting of people from all walks of life. The financial comfort of a young employee will be different from that of an experienced one. Such aspects can only be considered if organisations ask their employees for suggestions and contributions. 

#2 – Improper communication

Financial wellness programs are still a relatively new concept, with many in top management positions remaining unaware of how such programs should be structured. They are unable to build a vision for its usage and benefits to employees, and this naturally results in a passive response.

Financial wellness isn’t just about offering knowledge and information on managing finances (i.e. financial literacy). It covers the theory as well as the practical part of it. Financial wellness combines two aspects: 

Therefore, there should be clarity and proper dissemination of information about financial wellness program among employees. Any question and queries about the program should be answered timely so that it becomes easier for an employee to adapt to the program. This is likely to help boost responsiveness.

#3 – Focus only on benefits and not on education 

Some employers tend to believe that paychecks and a handful of additional benefits are adequate measures to ensure the financial health of employees, but this is not always the case. Employees also need help managing their funds. Right from how to budget for the household, manage student and other loans, and saving for contingencies, many do need assistance. 

A financial wellness program should put equal emphasis on education as well as benefits. Live sessions, one-on-one-counselling and personal coaching as and when possible – all of these are significant value-adds. 

A financial wellness program is an initiative that demands some thought and planning, and can be fairly rudderless if employees don’t seem to be adopting it. Organisations would do well to analyse the critical points and bring in necessary changes. After all, that’s what a true win-win would look like. 

What Are The Essentials For Holistic Employee Wellness?

In the corporate context, the concept of wellness has often been associated only with regards to the physical health of an employee, and employers have historically been focusing their wellness plans around these. However,  ‘wellness’ may not just mean good health to all the employees. For someone, it can be physical wellness, while for some mental wellbeing can be more important. Therefore, focusing on a singular aspect of wellness is likely to be inadequate in employee satisfaction and in designing a plan that fits everyone. 

Holistic employee wellness has evolved as a new concept in recent times. With organisations recognising employees as their biggest asset, it has become increasingly important to ensure their holistic wellbeing. There are certain essentials that constitute holistic employee wellness. These can be broadly classified as physical wellness, mental wellness, social wellness, career wellness, and financial wellness. 

#1 – Physical wellness

Workplaces may not have a significant direct effect on the physical wellness of an employee, but they can take measures that ensure better lifestyle choices that are healthier for their employees. Practical or flexible working hours is a good way to assure that employees do not get overworked. Organisations can also promote good health by providing options such as standing desks, gymnasium, healthier food, and others to help employees be healthier. 

Continuous work can also affect the physical health of an employee, thus proper relaxation and rejuvenation programs can also be implemented. 

#2 – Mental wellness

The mental health of employees is an increasingly prominent issue in today’s workplaces. Employees now often report work stress, depression, poor work-life balance and more. This not only affects them as a person but also their productivity as an employee. Thus, employers may be risking productivity if they ignore the mental health of their employees. 

Therefore, there is certainly a pressing need for understanding the requirements of employees to ensure they are not mentally stressed, and working environment plays an important role in this. Organisations would do well to hire experts that can suggest specialized plans to deal with mental issues of employees. 

#3 – Social wellness

Employees spend almost ⅓  of their life at the workplace. Not surprisingly then, their social life is greatly affected by their life at work. While employees constantly work, collaborate and brainstorm together, this is not an indicator that their interpersonal relationships are just as good. Employers understand this, which is why they organise various programs with a focus on making employees more comfortable with each other and the workplace more relaxed. 

Social wellness can also improve the relationship between a superior and subordinate, and help iron out any differences that may arrive at a workplace. 

#4 – Career wellness 

Employees naturally desire a career with some sense of direction in their organisation. Stagnation is best avoided, and that is made possible with opportunities to hone skills, progress in roles and positions, and being recognised for contributions.

To ensure improvement in career wellness, employers may want to initiate leadership programs, where extraordinary performers can be recognised and trained to become leaders for tomorrow. Their job should be tied to giving the organisation the right push, so they feel their job is relevant and recognised. 

#5 – Financial wellness

Perhaps the most critical factor in these paradigms that employers tend to overlook is financial wellness. Financial wellness does not only constitute better pay, it includes all related benefits an employee receives as well. All such benefits should often be consulted with the employees. Financial plans are never one-size-fits-all. With every employee sharing unique goals and plans, programs should be changed and broadened as and when needed. 

Employees also want to start planning their future as soon as possible. Thus, it becomes an employers responsibility to train their employees about good financial management. Programs to help them understand various financial schemes, retirement planning, financially investing for long-term goals, will help the employees to a great extent. 

Organisations may also want to connect employees with services that offer quick and hassle-free access to credit, like EarlySalary. Money, after all, is an enabler – and credit is how this enablement is executed.

It is time for employers to look beyond the paycheck and start thinking of employees as not only a productive asset, but also understand their human needs. 

The Convergence of HR and Technology Can Lead To Some Overwhelming Results

Even under the most challenging circumstances, it is critical to strengthen a workforce in a way that reflects an organisation’s true values, culture and growth objectives. Weathering that challenge requires innovative thinking and technology. HR can leverage technology to fill the gap between talent needs and optimize productivity to get desired increase in business growth.

Technology is more than just a tool – it’s an enabler. It can empower HR managers and deliver structured information with standardised processes. It can automate and streamline HR processes in the employee lifecycle. Every step from hiring, onboarding and training to compensation, benefits, retention and exit. In this post, we cover how tech in HR can assist businesses to thrive, survive and compete.  Let’s have a look at the transforming HR tech sector and the impact that they can have on your business.

Top 3 Tech Trends in HR

From payroll function, applicant tracking, learning and compensation management to succession planning and competency management, technology in HR can do it all. It is essential  for business houses to accumulate and use technical knowledge within the aegis of a shared environment. For better clarity , we have narrowed down to the top 5 trends that might heavily influence your organisation.

#1 – Big Data and Analytics 

The significance of data management in HR is unquestionable. HR professionals can deploy big data to understand their customers, target audience group and make decisions powered by vital information. Analytics can also assist recruiters assess potential employees and make better risk management decisions. Natural language processing technology can deliver findings on movements and interactions of employees and scrutinise efficiency. Talent analytics can help organizations analyze employee knowledge and develop proper training programs for them.

Organisations can even leverage workforce analytics to get a clearer view of pay gaps and discrepancies and promote fair salary compensation. The role of HR as an administrative function can be supported by technology to simplify administrative tasks and have a strategic impact on the organisation.

#2 – Cloud-Based HR Platforms 

Cloud-based HR software is  increasingly becoming the norm. This isn’t surprising, as it allows HR professionals to work with real-time data, store, archive and organise information such as documents in a secure location. An employee self-service model grants employees better control of their data, benefits and gives companies more effective tools to evaluate employee engagement and productivity. 

#3 – Technology For Employee Wellness 

Creating an employer brand requires employee advocacy. Technology can help encourage employees to become true advocates for an organization by sharing their own valuable experiences. Self-service applications, machine intelligence and e-learning approaches can deliver personalised financial-wellness education to employees at their convenience. 

Data can be automatically compiled with machine learning algorithms. This can be used to construct annual reviews of employees’ financial standing and recommend short- and long-term plans. There are numerous financial wellness tools available which offer services such as budgeting tools, financial goal planning, tracking of spending, assets and financial management progress. 

Embracing Technology

Marrying a technology experience with human experience may not be adequate in itself. It is also important to adopt technology-augmented processes to effectively move the needle on financial health and ensure the inflow of information and its availability to employees. This will, of course, require human resource managers and their departments to transform into  strategic data managers. There is a gulf between technology adoption and the ability of HR teams to use it and the data it generates to deliver meaningful, business-transforming metrics. There is a need for critical investment decisions in technology to reap huge benefits and growth for organisations.

Working with a Multigenerational Workforce in 2019

By: Srihari.S

About the Author: He Heads the Talent Management and Digital HR practice for a medical technology Company and is currently the Director Human Resources with over 15+ years of Industry experience.

Mention organisational restructuring in a hallway, and you’ll likely receive an eye-roll. Seasoned employees may say that they know the drill as they revise and re-revise business priorities. However, isn’t it time we find a new group of workers to come along and bring with them a vibrant and optimistic approach to workplace change? After all, even long-tenured and jaded employees may want to experience change in new and exciting ways. 

In recent years, I have been witnessing a more collaborative and constructive approach in organisations and the catalyst is the generational overlap taking place in Indian business today. Generation Z workers are arguably the most ethnically diverse generation, and they are entering the workforce in big numbers. With close to five generations present in most organisations, managing generational diversity can be overwhelming. 

Rethinking Goals & Seeking New Values 

Firms today are competing to maintain longevity and employees’ value proposition vis-a-vis the industry approach. This requires leveraging demographic advantages, specialisation in creating collaborative networks, performance management and project economics. All of these tasks require that organisations garner commitment from their workforce of the future.

As per a survey by PWC, India will have the youngest employable population in the world by 2020. With the increase in flexibility and ease of work, the average retirement age will also likely go up, which will further increase the multi-generational mix. Moreover, by 2020, the average Indian will be only 29 years of age. The key is adopting the learning-from-everyone approach or reverse mentoring. Communication, networking, strategizing and other related tasks are executed differently by varying generations, and can add unique value to multiple aspects of an organisation’s functioning. 

The Role of HR

The role of HR in building a collaborative multi-generational work environment and brand should be focused on connecting the right culture and behaviors, and on guarding against reputational risks across divisions. In the same vein, innovation in financial wellness programs can assist in incentivising different generations and help companies thrive in the future. 

As organisations struggle to find employees with bleeding-edge tech-skills and professional savviness, there is a need to anticipate the ways disruptions originating from a multigenerational workforce can impact an organisation. Over the years, I have seen divergent pursuits of happiness, values and ideals across generations, as I’m sure many others would have as well. The key is to make every generation feel accurately valued and align them with broader goals.

Every generation shares different goals. Some prefer cash rewards and respond to hygiene factors such as promotions, perks, appreciation, fancy designations, and so on. However, many may be interested in relatively newer age concepts such as flexible retirement options and tax-saving schemes. This should not be surprising – all of us desire financial security, after all. Millennials tend to appreciate wellness programs that offer them getaways with family and friends, outcome-based remuneration and structured investment plans. Whereas, the older generation prefers monetary rewards, stock options and long-service awards. To allow employees from each faction to add to the changing business landscape, it is important to fine-tune the financial rewards with performance metrics and productivity. 

Challenges Ahead

The real test of the HR function would lie in catering to the diverse employee value proposition. While millennials revel in multi-tasking and in being validated for their efforts, the older generation is task-oriented and can value material rewards and individuality. 

A generational difference creates a workforce that may find itself divided in more ways than more homogenous workforces. Herein lies the rub. While most policies in an organization are designed by a group of seniors, there is an increasing potential for mismatch between the desired results and the actual impact. As per a study by Deloitte, this mismatch can lead to lower engagement rate, productivity, a higher attrition rate and  unrest among the workforce. This can result in lower than expected output from the investment in human capital. Clearly, there is a need to build granular understanding of generational differences for a productive workplace. 

Multi-Generational Workforce: A Boon

It is important to remember that the senior industry experts in your organisation add tremendous value with their industry insights. However, we must not overlook the knowledge that younger generations can bring. A multi-generational workforce creates an environment ideal for symbiotic growth of knowledge and skills. When we leverage the unique skills of the different generations, we enable employees to create a more engaged and productive environment.

All You Needed To Know About FOIR

For lenders, loans can often be a risky affair. There is never a surety that the money lent will always be paid back. Now imagine the kind of risk that a bank or NBFCs hold, the primary part of whose business is lending money to corporates and individuals. Their responsibilities increase manifold, as the money is lent from the deposits that are made by the public. And a lot of times, even after proper checks and guarantees, banks end up with NPAs or non-performing assets. 

Not surprisingly then, every bank follows certain criterion to determine whether or not an individual is eligible to get a loan. One such ratio that banks use it called FOIR, or Fixed Income to Obligation Ratio. 

What is FOIR?

Fixed Income to Obligation Ratio is used by banks to determine the repaying capacity of a person. Banks consider the instalments of all the previous loans that are taken by an individual and their daily living expenses. By determining the total existing liability and expenses, banks can easily identify the disposable income that will remain with a person and whether or not they will be able to pay another loan’s instalment. 

This metric is also known as the debt-to-income ratio. Statutory deductions such as taxes, PF, or insurance are not taken into account while calculating FOIR. 

How Important is FOIR? 

FOIR can be critical for determining eligibility criteria. If a person’s FOIR doesn’t match the standard set by a bank, it may lead to rejection of the loan, or they may not get the complete amount they need. Even if a person has paid EMIs of all the previous loans on time, this doesn’t necessarily mean that they will get further approved for a loan, if their FOIR is high. 

FOIR can help bank easily gauge whether an individual will be able to pay the EMI of the prospective loan with all the expenses they have. And thus, they can decide whether or not to approve the loan to minimise any chance of loss. 

Since the FOIR takes into account the expenses and liabilities with a proportion to the income of the individual, it can be applied to all applicants with different levels of income. 

How to calculate FOIR? 

There is a simple formula to calculate FOIR. 

FOIR = Debt+ Living expensesNet monthly salary100

Let’s understand this by an example. 

The salary (in-hand) of Mr X is 50,000 per month. His monthly living expenditure (such as rent etc.) amounts to 20,000 and he already pays an EMI of 5,000 per month for his car loan. 

Calculating using the above formula, his FOIR will be 50%. Thus, the person will be able to repay any loan whose EMI is less than 50% of his salary, or less than 25,000. 

How can FOIR impact Loan Eligibility? 

A person’s loan eligibility highly depends on their FOIR. The standard FOIR for any loan eligibility ranges from 40% to 60%. It can vary depending upon the level of income since we can’t compare FOIR of a person with income of 50,000 and that of 1,00,000. 

The lower the FOIR, the better. This means that there are fewer expenses and the person is left with higher disposable income and a greater chance of paying the EMIs. 

Looking for a loan but worried about the hassle? 

Banks and other large financial institutions have plenty of legal and other obligations. Thus, to get a loan, borrowers must follow rigorous processes that take up a lot of time, and of course, energy. This is where apps like EarlySalary comes to the rescue of millennials, who have too much to do in too little time. 

With instant loan apps such as EarlySalary, a person can get an advance salary that they can easily repay too. With all the processes entirely digital via the personal loan app, the hassle of going through considerable paperwork is eliminated. These quick loan apps also offer a truly customer-centric service that often banks can fail to provide. 

Online lending apps also check your credit history and repayment capabilities, but even if you have a low score, you have a better chance of getting loans here than with traditional options. 

While traditional loans can seem attractive given their long presence in the financial industry and apparent appropriateness for the long term (such as home loans), using EarlySalary for your personal needs certainly helps avoid too many inconveniences. And it’s quick, with disbursements with hours of approval! Get started on the EarlySalary website here!

SBI launches e-Tatkal Loan

Tech advancements are driving and metamorphosing business practices across the globe today. Technology driven lending practices are taking over their traditional counterparts. Banks and financial institutions in India have been the major bearers and movers of finance across sectors, industries, firms and individuals. India has one of the largest banking networks in the world. Banks too have shifted their operations online with internet banking, debit and credit cards over the years. Now, their next phase of action seems to involve quicker access to credit. 

To keep in pace with the current developments and the growing need for fast instant loans, SBI has launched ‘Project Tatkal’ to provide doorstep services and expedite the home loan application process. “It will bring down the average time taken for delivery of home loan to within 10 days from the date of receipt of completed home loan application form and relevant supporting documents from the customer,” SBI said to Press Trust of India.

Highlights

  • The project will help customers ‘get instant loans’ within 10 days of receiving the application form.
  • The Application form has to be accompanied with relevant documents for the loan to be eligible for approval.
  • The implementation is being done in a faced manner. currently , it will be one at large centres with sizeable home loan business,
  • SBI also introduced an Online Customer Acquisition Solution(OCAS) for instant e-approval of home loan applications. 

The initiative is one of its kind and a pioneer step by the banking giant to smoothen up the approval process making things easier for the applicants. The bank even has over three million home loan customers with a portfolio of over 16,60,000 crore.

The press release though raises a lot of questions when it comes to comparing SBI’s standing with online lending apps like EarlySalary who, within three years, has very successfully crossed the 1000 crore loan disbursal mark. It scores over SBI’s project e-tatkal on several pointers. Established in 2016, the app has already become India’s largest consumer lending mobile application. Seemingly, banks are still far behind when compared with the agility, efficiency and speed offered by instant loan apps in India like EarlySalary. 

As of 2017, Fintech companies enjoy a market share of 32% in the Personal Loan segment, higher than banks, credit unions or any other traditional Finance Institutions. With a host of attractive features like Instant approval and Paperless processing, you can avail these unsecured loans via the online route.

As you read this article right now, about 1500 instant loan companies are providing instant cash loans, salary advances and a bundle of other facilities to lend finances to their happy and satisfied customers. The online lending apps are gaining popularity due to the security and assurity with which a prospective borrower turns into a satisfied customer.

Co-founder and CEO of EarlySalary, Akhay Mehrotra says, “India is a fast growing market with a large percentage of young population. However, there is still a lack of access to credit, which ultimately is essential for development. This is where we come in; EarlySalary provides the credit underserved groups with timely financial assistance through technology and data-driven approach with a low delinquency rate. This has helped us scale up the business very quickly and we believe that we will cater to at least four to five million users in the next couple of years. The fact that we are now the country’s largest consumer lending application is a testimony of the faith and confidence that our users have in us.”

Let us have a quick review of what makes earlySalary so appealing to the young population: 

#1. Hassle-Free and Quick

The EarlySalary app does not let you wait 10 days or more as is the case with SBI. Your application is processed within minutes and the loan amount is disbursed to your bank account within the next 24 hours. Traditional banks have to go a long way before they can reach the automation levels reached by the app until now. It currently disburses over 60,000 loans a month and not even 3000 loans out of the lot require any kind of human intervention. 

#2. High level of Digitisation

Zero human intervention and high levels of digitisation allow for a decision making process based on a unique lending algorithm that combines traditional scores with non-traditional  data including other parameters such as risk assessment. The first time users and repeat users of the application are reviewed using a unique social worth underwriting system and a machine learning platform. This ensures that a person seeking credit for the first time or without a credit score gets a loan on the online platform too. 

#3. Less formalities

SBI is opting for doorstep approval of loan applications along with its OCAS facility. EarlySalary only asks for your bare minimum documents all of which can be uploaded on the app itself. From the application to the disbursal- all the formalities of the loan are completed on the app itself. The online lending app does not take into account the credit rating of the applicants except in some cases. The eligibility only asks for you to be a citizen of India, over the age of 21 years and earning a salary of INR 15,000 in rural areas and INR 18,000 in urban areas. There is no processing fees or hidden charges involved in EarlySalary loans. 

#4. Customized and tailored products

Home loans are the only segment being touched upon by SBI under the new project. The facility will be only available in areas of high demand. Whereas with EarlySalary you can get a loan from INR 5,000 to INR 5 lakhs. Besides this, it provides a variety of other variants of credit facilities such as Advance salary, Instant loans, FeEs(education loan), credit cards, to name a few. The repayment terms are, of course, customisable as per the convenience of the borrower. 

#5. Credibility 

SBI is a name one connects with trust and assurance. EarlySalary does not lag behind in this department too. It has 220 corporate partners with a reach of a total of 5 lakh employees. They have recently opened India’s first ever FinTech SmartOffice in Bengaluru to serve an offline channel for customers. They have seen growth rate of 200% per year and the mobile application has been downloaded 9 million times. It seeks to serve those sections of society that are often rejected by the bank for want of creditworthiness- the young salaried professionals and the blue and grey collared workers.   

SBI has a large legacy when it comes to serving customers and the new step with e-tatkal is being appreciated by the masses. Further details about the project are yet to be released. The best instant loan app – EarlySalary, on the other hand, is focusing on ensuring the best customer experience their priority. Though in their nascent stage, the app has been well received by the millennial and Gen Z when it comes to quick instant loans over the internet, without serving yourself the haggles of approaching banks or waiting for approvals over an online medium for more than a week. Stay tuned for more updates!

Why is the Indian Market rapidly moving to Personal Loans Online?

“We are in the midst of a robust Indian consumer credit market expansion where we are seeing immense growth in both the number of accounts and balances for most major credit products, including credit cards and personal loans,” – Yogendra Singh, Vice President of Research and Consulting, TransUnion CIBIL.

The online credit market has been seeing a robust growth throughout the year with more and more young people opting for online personal loans to seek assistance during  financial crunch. Rishabh Salwan*, a Customer Care Executive, needed some quick cash to disburse his fees for an online MBA distance learning programme. He had already taken an auto loan and was in no state to saunter around banks for another loan. At last, he used an online personal loan app requiring no credit check to get his life sorted. Online personal loan apps are coming to the rescue of the masses who are often rejected by the banks due inadequate creditworthiness, or interest rates that are beyond the scope of repayments. Today, there are a number of fintech portals that provide personal loans for students and personal loans providing fast cash. 

As such rising aspirations of Indian consumers, especially the white, blue and grey collared class, has led to the growth in the volume of transactions across all portfolios and geographies in case of personal loans. 

Credit accounts saw 28% growth in origination to reach 107 million accounts and aggregate balance of all retail lending products saw 21% growth to reach Rs.28.9 trillion, in the third quarter of 2018 compared to year-ago  quarter, according to the latest industry report by credit information company CIBIL Trans Union. 

~Economic Times

Aspirations and desires are driving millennials to go overboard with their splurging and purchases often beyond the scope of their salaries. And they aren’t stopping or waiting for the piggy bank to fill!  Especially the young earning population living in metros and tier-1 cities – folks here do not shy away from using credit as a means of going on a vacation or purchasing their favourite bike. Tech advancements, machine learning, automation and AI clubbed together have oozed out some fantastic quick personal loan apps online that have simplified loans. From a cumbersome ritual involving loads and loads of rejections before one get approved to a mundane activity as if borrowing from a friend, online personal loans have changed the way one borrowed money. Traditional banks granting personal loans still follow the same customs of slogging as you fulfil the formalities and still get a rejection in return. 

Online personal loan apps such as EarlySalary are surging in popularity over banks because they are quick to disburse loans and don’t require lengthy paperwork. Besides, they offer consumers a personal loan EMI calculator to plan their borrowing. You can check your credit rating on the app as well. Let’s talk about a few quick pointers about why online personal loan apps are a rage nowadays.

#1 Changing lifestyles

The lifestyle patterns of new-age millennials are evolving. Instant lending apps now serve almost as instant digital wallets for the people who need not suffer during month-end  financial crunch. The times are shifting from postponing one’s needs to postponing one’s payment through these online loan apps. People take easy pesonal loans anywhere between INR 60,000 to INR 1 lakh to fund their dream holidays or ease up their cash flow for other expenses. 

#2 Frequency and Quantum of loans

Earlier loans were considered a burden and loan default – a stigma. With changing times and needs, loans have been serving petty cash requirements of even INR 5,000. A person may be opting for these online loans umpteen times during a year and sorting his repayment schedule likewise. This sort of routine seems almost impossible when it comes to banks and the efforts are enough to break your backbone. The frequency and quantum have increased and decreased respectively. While the variations in the loan amount as per the needs also ask for a facility that is quick, undemanding and economical. 

#3 Plastic money and online lending

Banks and other NBFCs provide less choices in terms of short term credit facilities. “As we started to explore solutions for this problem, we noticed that the underlying problem was much larger. The only product financial institutions offered was a credit card which was meant for customers with high incomes and high credit score and there were no short-term credit options for young Indians,” says Akshay Mehrotra, CEO and co-founder of EarlySalary. Also, people with low credit scores may not get a credit card. Credit card is often accompanied by heavy interest burden and patchy recovery agents haggling customers. 

#4 Cibil scores

Online lending apps don’t ask for CIBIL scores while granting loans. Students and employees find it easier to seek a loan of low value for a duration of a week to 51 days, and EMI based 3 months to 12 month personal loans. The best part –  your credit scores remain unaffected and your credit standing remains intact. 

#5 Ease and agility

These loans require no formalities and minimal waiting time. Customised plans without any human underwriting are involved. The prominent aspect of these loans is that they are getting accepted by the employees as financial wellness offerings from the companies who have collaborated with the apps. 

The loans earn brownie points for disbursing the loans in the accounts of the borrowers within 24 hours of the application. 

#6 App based

There are no physical barriers involved, nor is the need to travel to the nearest bank branch and get your loan sanctioned. Everything has been made feasible  on a single mobile app, from the loan application to uploading of documents to loan approval. You can be in the comfort of your couch and get the instant personal loan into your account. 

#7 Direct associations

“Today, we offer over 40,000 loans a month across product portfolios of 30 days, 3 months, 6 months and 12 months in terms of instant loans, salary advances, EMIs to shop now and pay-later products on Amazon, Flipkart and Big Bazaar and school fee payment options on EMIs.” ~EarlySalary. 

The portal alone has about 200 collaborations with renowned brands. Customers can use online loans to buy stuff from online portals and pay later in attractive EMI schemes offered by the lending apps. EarlySalary also offers education loans and the facility for paying school fees and meeting other such expenses. 

Online lending apps can offer effective funds at the right moment with little efforts.The future belongs to the Internet and the online lending apps are a clear sign. Though traditional personal loans may be far from being replaced completely, the argument that they are on their way out certainly has merit

Why Finance & HR Must Work Closely Together

By: S.K Dutt, Group CHRO – Ampersand Group
Senior HR professional & Post Graduate Alumnus of University of Oxford – Said Business School

Both Finance and HR professionals share one common goal –  achieving higher level of performance and profitability. While CFOs are responsible for allocating resources required to deliver the company’s strategy, CHROs’ responsibilities include ensuring that right people are hired at the right time for the right job, with necessary support and effective incentives.

Employees – Cost or Asset?

Physical assets are easier to measure and manage, people assets, on the other hand can be difficult to predict and manage. Employees not only need top-notch treatment but also a comfortable pay that assists multiple aspects of their lives. Though HR and Finance departments can often be seen as diametrically opposite, there are significant advantages to be had via the establishment of a mutual working relationship here.

According to an Ernst & Young survey of more than 550 CFOs and CHROs around the world, companies where the Finance and HR relationship has become more collaborative over the past years report average higher EBITDA growth and stronger improvement across a range of human capital metrics, including employee engagement and productivity.

Finance department stands to benefit by working with HR to understand how perceiving employees as ‘assets’ rather than ‘costs’ can positively impact an organization’s long-term performance and is more likely to lower costs, streamline operations, increase productivity and improve talent management.

Certain ‘CFO-CHRO’ characteristics that sets apart high-performing companies from their low-performing peers include:

  • Acknowledging the implementation of shared services as a critical enabler of collaboration.
  • Deeper involvement in strategic planning and decision-making. Both departments adopt a forward-looking approach to get the most out of people and capital based on identifying the right opportunities and solution
  • Wider adoption of Analytics to focus on broader metrics for tracking the health of the company and not just the finances

Experts involved in the study done by EY have identified few key drivers of collaboration between these two forces:

  • Increasing labour cost and scarcity of talent: Increasing labour cost and scarcity of talent can lead to costly rates of attrition and impact the viability of investments. Companies need a better understanding of the relationship between cost and performance.
  • Elevation and acknowledgement of HR in the corporate hierarchy: Known for being a support function, HR has been far removed from strategic decision-making. Rich Postler, HR VP of Global Business Services, P&G is quoted as saying “It is fundamental that the finance head and the HR head are in lockstep with the line business head. The relationship between the three should be symbiotic. When we have a strategy, as a business, it has both human capital and financial implications that must be in sync. When they’re not in sync, we make bad decisions and we confuse people.”

  • Addressing financial and people impact of decisions: Involving both the CFO and the CHRO in the strategic decision-making process and creating new products and services keep the financial and people impact of decisions
  • Changes to operating models: Next journey for companies would be to have a global data knowledge and oversight that will give HR and finance business partners the insight they need to better enable business success.

There’s a much larger influx of data in organizations seen today than ever before. This data, with the help of Analytics, can be leveraged and used by both departments to integrate the idea of finances and human assets even deeper and optimize critical decision-making processes. Well-articulated in an article by Nakisa.com, some of the key questions that CFOs are looking to answer through HR metrics include the following:

  • Do we have a clear picture of the current organization?
  • Do we know where talent and organization vulnerabilities lie?
  • Do the actions of our organization align with our business strategy?
  • Are we building a sustainable talent roadmap?
  • Can we maximize retention and reduce the cost of turnover?
  • Does our HR technology facilitate a smooth, fast way to manage end-to-end HCM?
  • Are we engaging all key stakeholders from front-lines to boardroom in our HR strategies?

The Finance department can estimate value addition by employees and provide inputs on the financial impact of the processes and HR is available to determine whether training and nurturing is required. Succession planning, managing salaries, bonuses, expenses and purchase orders all trackback to the expectations and culture nurtured by HR and with Finance providing a support, the dual goal of maximizing profit and minimizing cost can be easily achieved.

Creating Synergies

A functional company is a product of functional employees and can be improved by managing monetary and non-monetary benefits in balance, together. Working together, the Finance department can improve the bottom line by weighing the human capital of the business and building a perspective that extends beyond just returns on investments. HR managers better understand how every decision the company makes affects the bottom line and roll out policies that reduce employee turnover cost.

The two functions can design financial wellness programs such as retirement plan funds, credit education/enablement, skill upgradation for future growth etc. that organizations can embed and use as regular practice to attract and retain talent. Overall, as companies scale, the biggest impediment, yet a determinant of success, will remain its workforce. It is therefore critical to consistently optimise for a highly competitive and dynamic global business environment. The key to generating maximum output is to work in accord and let the counting bots in Finance play with the HR’s focus lens.

About the author: Senior HR professional & Post Graduate Alumnus of University of Oxford – Said Business School. The author has earlier worked in leadership positions in an erstwhile subsidiary of Brooke Bond, L&T, Welspun Group, ABG Group, ASB (Nissei) and others
*Views expressed in the article are personal views of the author and does not represent any company or organization.