What should our Global Economy: What Is Expected In 2022?

The COVID-19 viral pandemic remains a very personal, individual experience and an unparalleled internationally shared event with far-reaching consequences. The economic impact is already visible as the health, and human toll rises, and it constitutes the world’s greatest economic shock in decades. According to estimates, the virus lowered global economic growth in 2020 to an annualised rate of -3.4 per cent to -7.6 per cent, with a projected rebound of 4.2 per cent to 5.6 per cent in 2021. A recurrence of infectious cases in Europe, Russia, the United States, Japan, Brazil, India, and most of Africa has rekindled calls for lockdowns and curfews, threatening to undermine or postpone a potential sustainable economic recovery beyond mid to late 2021.

The economic repercussions from the pandemic have had a disproportionate impact on particular industrial sectors of the economy and certain demographic groups, and there is a danger of ongoing labour dislocations due to persistently high levels of unemployment not seen since the 1930s Great Depression. Workers rethink their career paths and work habits in certain circumstances, implying a post-pandemic economy with more diverse labour arrangements and a changing urban environment.

The impact on employment

Across major economies, unemployment has risen. The OECD predicted in July 2021 that the pandemic-related recession would lose 22 million jobs in OECD nations in 2020 and 114 million jobs globally, compared to 2019. As a result, millions of people have been placed on government-sponsored employment retention programmes, as sectors such as tourism and hospitality have ground to a halt.

Within countries, the employment and incomes of adolescents, women, and lower-skilled employees have been hit the worst. Almost 1.6 billion informal sector employees have experienced enormous harm to their ability to make a livelihood, out of a global total of two billion and a total workforce of 3.3 billion. This is owing to lockdown measures and the fact that they operate in the hardest-hit industries. International cooperation on stimulus packages and debt relief measures will be crucial to effective and long-term recovery.

Sectors most adversely affected

Pressure on ailing healthcare systems, declining commerce and tourism, dwindling remittances, sluggish capital flows, and tight financial conditions in the face of rising debt. The reduction in industrial activity lowered demand for energy items such as crude oil, leading prices to fall dramatically. This is bad news for energy producers, renewable energy producers, and electric car makers, but good news for consumers and companies. Metals and transportation-related commodities, such as rubber and platinum used in automobile parts, have also witnessed a decline in demand. While agricultural markets are adequately supplied internationally, trade restrictions and supply chain interruptions may cause food insecurity in particular areas.

The economic impact of the COVID-19 pandemic is primarily driven by a drop in demand, which means that there are fewer customers ready to buy the goods and services offered in the global economy. This dynamic is evident in severely impacted industries such as travel and tourism. Countries imposed travel restrictions to curb the spread of the virus, and many individuals were unable to buy flights for vacations or business trips. Airlines lost anticipated income due to a decrease in customer demand, and as a result, they had to cut expenditures by lowering the number of flights they operated.

Governments’ perspectives

Throughout the various stages of the health crisis, governments implemented laws to restrict social activities to slow the spread of the pandemic, unwittingly causing a global economic slump. In reaction to the great decline in economic activity, governments implemented a series of steps, beginning with monetary policies aimed at stabilising financial markets and assuring credit flow.

Many governments boost monetary assistance to individuals and ensure that companies have access to the cash needed to keep their employees employed during the pandemic. Despite governments’ exceptional attempts to combat the slump through fiscal and monetary policy assistance, the June 2020 Global Economic Prospects predict a 5.2 per cent loss in global GDP in 2020, using market exchange rate weights—the biggest global recession in decades.

Responses from various countries

Although the scale and breadth of the programmes varied by nation, central governments implemented various fiscal measures to give financial assistance to the health sector, individuals, and businesses. Tax cuts and tax deferrals for people and corporations, wage and income supplements for individuals, including expanded unemployment insurance, and other benefits to businesses are all included in this package. 

The Canadian government approved a C$1 trillion spending package to boost economic development on December 1. On November 12, India’s finance minister presented a new $35 billion fiscal package to increase consumer spending while also supporting manufacturing, agriculture, and exports.

Major advanced economies, which account for 60% of global economic activity, are expected to run below their potential production level until at least 2024, implying poorer national and individual economic well-being compared to pre-pandemic levels.

Economic projections

According to mainstream estimates, the economic slump in 2020 will be less severe than previously anticipated, thanks in part to fiscal and monetary policies implemented by governments in 2020. According to the International Monetary Fund’s (IMF) April 2021 World Economic Outlook, the global economy is expected to recover faster in 2021 and 2022 than previously predicted, with global growth expected to expand at a pace of 6% in 2021 and 4.4 per cent in 2022.

According to the projection, nations’ economic recovery would be unequal based on access to medical treatments, the efficacy of governmental assistance, vulnerability to cross-country spillovers, and structural features entering the crisis. India and China, in particular, are expected to outperform global economic growth, with 12.5 per cent and 8.4 per cent growth rates in 2021, respectively.

According to the OECD estimate, unemployment will reach its highest level in more than 25 years, with the average jobless rate rising to 7.4 per cent in 2021 and 6.9 per cent in 2022. The OECD also finds that nations reliant on tourism have been hit more, while countries with strong agricultural and mining industries have been hit less hard.

To Conclude

Global coordination and cooperation—of the measures required to slow the spread of the pandemic and the economic actions required to alleviate the economic damage, including international assistance—provides the best chance of meeting public health goals and enabling a robust global recovery. Because of the nature of this crisis, certain industries may gain from it. E-commerce, food retail, and the healthcare business will contribute to economic development, which will help balance the impact. There is also a crisis-induced shift to online activities (working from home, purchasing things online, connecting relatives, etc.). It provides a chance for IT solution providers to expand their market share. 

Once the pandemic ends, it may allow the world economy to enjoy a strong comeback. There are still many variables that could affect such an economic recovery – for example, a reduced supply of goods and services to meet lower demand could result in mid-term shortages and price increases. However, there are some reasons to believe that some of the more ominous predictions may not come true with the right combination of appropriate government responses and luck.

This Literacy Day Learn Financial Literacy With Top 5 Financial Literacy Books

Highlight: Being financially literate is not easy, but once mastered, it can significantly reduce life’s burdens. To get started in this field, read the best-selling financial literacy books.

Financial literacy is obviously a critical life skill. After all, it’s your gateway to knowledge and skills to effectively manage your money. In its absence, your actions and decisions regarding savings and investments will lack a solid foundation. On the other hand, financial literacy will assist you in better understanding financial concepts and enabling you to manage your finances efficiently. It will also assist you in making financial decisions and achieving financial stability.

There are many personal finance books available today that cover a wide range of topics. These topics include debt management, wise investing, better budgeting, and a variety of others. Each of them can assist you in better managing your money while also teaching you about useful tools and techniques. Some may be more relevant than others, depending on your specific financial situation. 

With this in mind, here are five of the best personal finance books you should read.

Rich Dad Poor Dad by Robert Kiyosaki

You’ve most likely heard of Robert Kiyosaki’s “Rich Dad, Poor Dad,” but there’s a reason it’s been around for more than two decades. In one of the most successful personal finance books of all time, Kiyosaki shares what he learned growing up from his father and a friend’s father, the latter of whom is referred to in the title as the “rich dad.” These lessons include how you don’t have to make a lot of money to be wealthy, how to define assets and liabilities, and why schools won’t teach your children what they need to know about personal finance. 

The book is a fun story in which the author shares his learning and experiences from his two fathers, one he refers to as the “Poor Dad” and the other as the “Rich Dad.”

The Total Money Makeover by Dave Ramsey

If you need debt management advice, this New York Times best-seller is one of the best personal finance books to read. Author Dave Ramsey introduces readers to his “snowball method” in a straightforward manner. Similarly, he covers a wide range of topics, such as avoiding renting-to-own, cash advances, and credit cards. He also assists you in budgeting for future emergencies, retirement, and college.

Dollars and Sense by Dan Ariely and Jeff Kreisler

The notion that our spending decisions are solely based on logic and education has long been disproven. We now understand that our financial decisions are frequently influenced by emotions and subconscious desires. Readers are treated to the inner workings of the human mind when it comes to dealing with money in Dan Ariely and Jeff Kreisler’s book “Dollars and Sense: How We Misthink Money and How to Spend Smarter.” Ariely, the James B. Duke Professor of Psychology and Behavioral Economics at Duke University, and comedian Kreisler have collaborated to create an engaging read that blends scientific evidence with entertaining real-world examples.

The Psychology of Money by Morgan Housel

In an ideal world, you would approach each decision logically and rationally. However, when it comes to money, ego, emotions, and pride can all get in the way. If you want to manage your money more effectively, you’ll need to overcome these potential roadblocks. And that is what Housel aims to accomplish in his current book, which discusses the psychological aspects of financial decisions. He tells 19 short stories to highlight key points and help you make better financial decisions. Given that Housel previously wrote for the Wall Street Journal, it’s no surprise that this is one of the most popular personal finance books.

Why Didn’t They Teach Me This in School? by Cary Siegel

Siegel, a retired business executive, has a wealth of knowledge about financial management. However, educating his five children about good financial practices inspired him to write his book. The 99 principles and eight-core lessons included can also help you manage your money better. The material is not only easy to read, but it is also full of useful advice and personal experiences. As a result, it has quickly established itself as one of the best personal finance books available today.

You can also read Best personal finance books for 2021 for guidance on personal finance management. 

How you can use Public Provident Fund for better financial planning

Highlight: Worried about long-term financial planning? Investing in a public provident fund (PPF) can be a good investment option with many benefits. Learn how you can invest in PPF for better financial planning.

The reality of inflation has everyone thinking about investing their savings for long-term financial planning. In these times of uncertainty, investing in a public provident fund (PPF) can be the best investment option. 

The PPF is a savings scheme for long-term investments as it comes with a lock-in period of 15 years, known as its maturity period. PPFs accounts are comparatively safer for investing and earning a high interest rate over bonds or fixed deposits. Here are all the numbers behind them:

  • A PPF account allows investors to invest up to Rs 1.5 lakh every year. 
  • The minimum amount that an individual can invest in their PPF account every year is Rs 500. 
  • Moreover, investors get tax deduction benefits under section 80C of the Income-tax act, and the final maturity amount is completely tax-free.

Benefits of investing in a PPF account

Here are a few benefits of investing in a PPFs and how it can be a good option for long-term financial planning. 

  1. Tax benefits: You get tax benefits at all three stages of investment in a PPF- In the initial investment stage, you get tax deduction benefits, the interest accrual stage, and the final maturing stage. 
  2. Safe and secure option: A PPF is a government-backed scheme, which is entirely safe and secure for investment. 
  3. Long-term savings: Since PPF has a 15 year lock-in period, you can plan for your long-term goals such as retirement plans, children’s higher education, etc. 
  4. Flexibility to invest: You can invest up to Rs 1.5 lakh in a year, and the minimum amount you can invest in your PPF account is Rs 500 every year. You have the option of investing monthly, half-yearly, quarterly, or annually. 
  5. Flexibility to withdraw: Despite a lock-in period of 15 years, you can withdraw part of your savings after 5 years. 
  6. Open PPF account in minor’s name: If you are looking for long-term investment schemes for your child, you have the option of opening the PPF account in your child’s name. PPF is the best option for your child’s future. 

How to use PPF accounts for better financial planning

Here are a few effective ways to use PPFs for your long-term financial planning. 

1. Invest to earn interest deposits

You can earn annual interest on your yearly deposits. To make the best out of your PPF account, here is what you should know. 

  • All your deposits are tax-free, and the interest earned on your deposits are also exempted from tax, which makes earning interest from your deposits in a PPF account a good option. 
  • You have the option of making about 12 investments annually. 
  • Making a lump sum investment at the beginning of the financial year may not give you good interest. For instance, if you are depositing an investment in January, the interest calculation will be for the months of January, February, and March, which means it will not be credited for the entire financial year. 
  • Alternatively, you earn more interest if you deposit your investments monthly and pay on a regular basis. 

2. Apply for loans using PPF accounts

One major benefit of investing in a PPF account is the ability to apply for loans. Here are the requirements to consider before applying for a loan with the help of your PPF account. 

  • You can apply for a loan after completing 1 year of investments in your PPF account before the expiry of 5 years. 
  • The loan tenure is 36 months, and you have to repay the loan in installments within the specified tenure. 

3. Plan for retirement

The long-term nature of deposits with a minimum lock-in period of 15 years makes for the ideal retirement plan. PPFs offer a high rate of interest compared to other savings schemes such as bonds or fixed deposits. 

You can make a 7%-8% interest return if you deposit up to Rs 1.5 lakh annually. What makes PPF the best investment for retirement is that the principal amount and the interest are tax-free on withdrawal after maturation. 

PPF Investments: Conclusion

A public provident fund is a tax-saving account and a low-risk savings investment scheme backed by the government to earn interest. If properly invested, you can have secure long-term goals for yourself and your family. 

What is in-hand salary, and how is it different from CTC?

When you hear the term salary, what is the first thing that springs to mind? Consider yourself a newcomer to the workforce who is about to begin their first job. You finally get that ideal job with a high salary after putting in so much work to prepare for that faultless interview. You’ve arrived at the pay negotiation. But wait, you don’t understand concepts like CTC, in-hand salary, basic salary, and how they work?

Don’t worry. We’ve got it all covered. Let’s start with the fundamentals.

What exactly is an in-hand salary?

Take-home pay, also known as in-hand pay, is the amount of money deposited to your account at the end of each month after all deductions have been made.

How is it calculated?

To put it simply, this amount is computed by adding your base pay and allowances and then subtracting the various types of taxes (income tax, EPF, professional tax)

Net Salary = Basic Salary + Allowances – Income Tax/TDS – Employee Provident Fund – Professional Tax

  1. Basic salary: Also known as in-hand pay, this is a fixed component of your compensation that never changes.
  2. Allowances: Employees get several sorts of allowances, such as home rent allowance (HRA), leave travel allowance (LTA), dearness allowance, children’s education allowance, etc. 
  3. Income tax/TDS: The employer deducts the tax amount owed on your salary (based on the slab and rate of tax applicable) before handing over the salary to you. This tax is also known as tax deducted at source (TDS). 
  4. Employers’ provident fund: This is an employee benefit plan administered by India’s Ministry of Labour. Typically, the employer contributes at least 12% of the employee’s monthly salary to their EPF account.

What exactly is CTC?

The Cost-to-Company, or CTC, is the total salary package of an employee that indicates how much an employer spends on an employee over the course of a year. It consists of basic salary, allowances, a provident fund, and additional benefits. In layman’s terms, this is the amount of money that the firm provides you as a wage package when you are hired for the position.

How is it calculated?

CTC is computed by adding the total cost of any supplementary benefits received during the service year to the employee’s salary. 

CTC =Gross salary + PF + Gratuity

  1. Gross salary: Gross salary is the whole pay amount provided to the employee before deductions are known as gross salary. 
  2. Provident Fund (PF): It is a government-managed retirement savings program for employees. Both employees and their employers are required to deposit 12% of the employee’s basic salary into their PF account.
  3. Gratuity: Gratuity is the total sum of the amount paid by the employer to an employee at the time of retirement. 

How is in-hand salary different from CTC?

CTC contains numerous deductibles that are part of the overall compensation but do not get into the employee’s hands. In contrast, take-home pay is the amount that is eventually deposited in the employee’s bank account after all mandatory deductions such as PT, PF, TDS, etc.

To sum it up…

The numerous deductions from the gross income result in a significant discrepancy between the original CTC and the actual in-hand compensation. As a result, it is critical to understand your compensation structure and the many terminologies used to obtain an in-depth understanding of net or in-hand salary, gross income, and CTC as it is necessary to make sound financial decisions, such as tax-saving programs, trip planning, and so on.

With our simple Instant Loan with Earlysalary application, we have made vacation planning and other financial limitations easier for you.

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I have a Credit Card, Should I Apply For The EarlySalary Salary Card?

With the entire world rushing full speed towards digitisation, all parts of the economy have been revolutionised and the banking sector is not untouched by this either. With the growth in the fintech sector, access to credit has increasingly become easier for everyone. One of the major changes in the recent past with regards to easy access to credit, is the growing usage of digital cards. In fact, according to a report by Juniper Research in 2019, it was observed that the use of such cards is expected to grow at an exponential rate i.e., as much as 90% through the next few years with the net usage surpassing $1 trillion by the year 2022. The use of such cards has seen a further surge due to the impetus given for digitisation by the Indian government and The COVID 19 outbreak where all the online transactions have exponentially increased. 
In light of the changed economic paradigm, We, at EarlySalary have resolved to make your access to credit easier, especially for the Salaried professionals. That brought us to envisage our latest product, the EarlySalary All-New Salary Card

What exactly is the EarlySalary Salary Card?  

Our latest offering, the EarlySalary Salary Card, is a no-hassle zero-touch digital card, specially made for salaried professionals so that they meet all their big and small credit needs without any hassle. 

The Salary Card is powered by RuPay and helps the intended users make instant purchases across all online merchants like Flipkart, Amazon, et al, without having to worry about present budget issues. 

Why EarlySalary Salary Card?


The EarlySalary is not just your normal, run-of-the-mill Credit card. It is the next step in the banking sector to make credit easily accessible for all. These Salary cards are focusing especially on the salaried professional because not only do they constitute a huge proportion of the total workforce in the Indian Economy (almost 23% in the year 2017, net figure around 2.62 crores), they also are actively involved in online shopping. These Salary Cards afford these consumers a lot of flexibility, from setting up your own credit limit, buying things on an EMI basis, or even setting up an upper limit of spending on a particular kind of need or expense.

There are several accounts on which the EarlySalary Salary Card is superior to conventional Credit cards to meet your credit requirements. Some of the most praiseworthy advantages of the EarlySalary Salary Card are: 

  • Offers you a higher credit limit, linked to your salary amount. By using the Salary card you can use up to 4 times your EarlySalary credit limit.
  •  You can break up any transaction for more than Rs. 3000 into EMIs for easier repayment. It offers the option of breaking down your repayment into 3 to 12 EMIs and there is no prepayment charge as well.  
  • Offers you a zero-touch digital credit solution. There is no hassle of maintaining and carrying a physical card and makes its use much more convenient. This is especially a benefit in light of the COVID 19 pandemic where the use of such physical cards can act as a medium for the exchange and spread of the virus. 
  • A plethora of tie-ups with online vendors, educational firms, and health services to make the use of the  Salary Card more feasible. 
  • Very easy to activate the Salary Card while sitting comfortably at home. The whole process to activate the Salary Card is hassle-free and extremely quick. 
  • The eligibility criteria are very basic, making it easily accessible to all. Any salaried individual with a minimum salary of Rs. 18,000 in the Metro Cities and Rs. 15,000 in the Non-metro cities are eligible to apply for the Salary Card. 

So, do not wait up and apply for the Salary Card today to put an end to all your month-end money woes. So, get started on the EarlySalary experience now!

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Tips And Tricks To Avail Instant Personal Loan

Gone are the days when you have to stand in front of long queues in banks to avail a personal loan. Now, with the advances in technology, you can get an instant personal loan online from EarlySalary – the most reliable online personal loan app. 

Personal loans can be of great utility in times of financial needs, such as paying medical bills, electricity bills, paying school or college fees, etc. You can easily opt for personal loans for unexpected expenses or emergencies. 

However, to grant personal loans, the lenders and banking institutions have an eligibility requirement that you need to pass. Apart from the eligibility criteria, other factors such as credit score, income, bank statements, etc. that lenders consider before granting loans. This guide will list a few tips and tricks that you must consider before applying for an instant personal loan. 

6 tips and tricks to avail of personal loan

  • Maintain a good credit score: A credit score defines your creditworthiness and reflects whether you repay your dues on time, such as paying previous loan EMIs timely and clearing your credit card dues. If you miss out on your EMI payments or credit card dues, your credit score will decrease and affect your chances of getting a personal loan. 

Banks and lending institutions usually look for a credit score (or CIBIL score) of 700 or higher before approving the personal loan. Therefore, if you have a low credit score, you have to make sure you pay your EMI’s and clear the credit card payments on time. Paying the dues on time will help you maintain a good credit score. 

  • Apply for a personal loan online: To avoid submitting piles of documents, you can always opt EarlySalary’s fast and reliable services by providing minimum documents and avail an instant personal loan. 
  • Show clear sources of income: The lending institution usually asks for bank statements for the past 6 months or salary slips to determine whether you have adequate income to repay the loan amount. If you have more than one source of income, you can provide all the documents to the lender as it will make an eligible candidate for easy loan approval. 
  • Maintain a good bank balance: Since lending institutions ask for your bank statements for the past 6 months, it is always advisable to maintain a good balance. If your expenses exceed your income, you are less likely to receive a personal loan. With your bank statements, the lender can get insight into your spending and saving habits, which helps the lender decide whether you will be able to repay the loan amount or not. 
  • Make sure you meet the eligibility criteria: Before applying for a personal loan on an online personal loan app, you must check whether you meet the eligibility criteria for a loan application. For instance, the eligibility criteria by EarlySalary is as follows:
  1. You must be 21 years of age and not more than 55 years. 
  2. You must be a resident of India.
  3. You must have KYC documents for verification. (Aadhar, Pan card, driver’s license, etc.)
  4. You must be a salaried employee with Rs18000 as minimum salary (Metro cities) or Rs15000 (Non-metro cities)
  5. If you are self-employed, you will have to provide documents for alternate sources of income. 
  • Use a personal loan EMI calculator– If you are taking a personal loan for unexpected emergencies, then you can use a personal loan EMI calculator to calculate the monthly EMI amount before you apply for a personal loan. By calculating the monthly EMIs, you can get a clear idea about how much you will have to pay for the monthly EMI payments, further simplifying your decision regarding applying for a personal loan. 

Getting an Instant Personal Loan Quickly 

Fast approval of a personal loan depends on passing the eligibility criteria and presenting yourself as a credible borrower with good credit history and proper documentation. If you work on the above key areas, you can get fast approval on your personal loan request. Get started on your instant personal loan with EarlySalary, and get your funds within hours!

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Debt Consolidation With Instant Loans

With the growth in popularity of fintech and eCommerce, lifestyle upgrades have become accessible to almost everyone. With instant online loans, credit cards, and other debts to help manage the cash flow, people are now able to afford cars, homes, electronics, vacations, or even skill upgrades they previously wouldn’t have had access to. 

However, for all the benefits that proper utilization of debt could bring to your life, it is very easy to misuse this powerful tool. You could find yourself in a situation where you’re paying multiple debt bills of different interest rates (also affecting your credit score) just to stay afloat.  Managing multiple debt payments can be a very hassle-some process, and you could end up paying a lot in interest. 

In recent times, debt consolidation with instant loans has become extremely popular to remedy this very situation. Say, you have taken out different loans from different lenders (regardless of the type of loans – could be from loan sharks or credit card companies), chances are you’re paying up an obscenely high amount of interest. While credit cards charge approximately 40% per annum, the rates in the unorganized debt sector are definitely worse. You will end up paying significantly more than what you’ve spent, regardless of whether it is for an emergency or a simple shopping splurge.

The process of debt consolidation is simple. You get a cheap instant loan, preferably structured to be paid within five years, and use that loan to pay off all your debts. This way, you’ll only really need to manage a single debt, and with the help of companies like EarlySalary, you might end up paying as low as INR 6/day instead of spending a hefty sum on interest payments.

Debts Consolidation With Instant Loans 

Some benefits of choosing a debt consolidation instant loans are: 

1. EMI Reduction 

Since you’re opting for a cheaper loan, the amount of money you’ll have to pay per month decreases. Also, if the repayment period of the consolidation loan is higher than your existing debt, you’ll end up paying less per month to meet your obligations.

For instance, if your monthly obligations on previous debts amount to INR 10,000 a month, for 6 months (total obligation of 60,000) – you could take a debt consolidation loan repayable over a year and end up paying 5,000 a month to meet the same obligation.

2. Fixed interest rate for all loans 

Different interest rates for different loans make it extremely easy to default on payments and risk penalties (and worse, negative impact on your credit score). Choosing an instant debt consolidation loan means that you only need to monitor and track the loan at a fixed interest rate to ensure that you know the exact monthly outflow. 

3. No collateral required 

 Instant loans, like the ones on offer at EarlySalary, come with 0 collateral requirements. In addition, you do not need to provide any guarantor to support your loan. The entire application and sanction process is quick and easy. 

4. Improve Your Credit Score 

The number of loans outstanding and all defaults in payments create an adverse impact on your credit score. By consolidating your debts to a more favorable loan, you’ll have the opportunity to minimize the risk of defaults and pay back the loan on your terms (and thus having a direct impact on your credit score.)

Cons of debt consolidation with an instant loan

1. Eventual debt increase 

The interest that you’ve already paid on your existing debt cannot be recovered. By restructuring to a long-term loan, you might end up paying less per month but more money in the long run (even if the interest rate is cheaper). For instance, three 20% loans for INR 10,000 each repayable over a period of six months will have you pay INR 3,000 as interest, while one 15% loan for INR 30,000 for one year will have you pay INR 4,500 as interest. 

Of course, this calculation assumes simple interest for the sake of convenience. You can check out your EMI obligations before applying for your EMI through our EMI calculator

2. Prepayment penalty and other charges may be applicable

When you avail of an instant loan, you need to pay the processing fees along with the applicable taxes like Goods and Service Tax (GST). Additionally, the existing lenders may levy prepayment penalties if you repay the money before its due date. It is recommended you consider these prepayment penalties and other charges when applying for an instant loan as it increases the effective cost of borrowing. Luckily, with EarlySalary’s no hidden fees and prepayment fees policy, you’ll be able to get your hands on debt consolidation loans without all the negatives. 

Ultimately, your obligation to meet your financial debts cannot be neglected. However, we strongly urge you to use platforms like EarlySalary to ensure you have the best tools available to meet your debt obligations. To know more, reach out through 

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Companies, Time To Include Financial Wellness In WorkForce

Employees increasingly want more than simply a job. They are looking for employment that provides more than just paid time off and health insurance. They desire tax incentives, a retirement plan, debt relief, and assistance with personal financial planning. Employees appreciate their employers for offering fair financial wellness services, which are difficult to find elsewhere.

Financial wellness refers to an individual’s total financial health and is one aspect that contributes to employee well-being. Many companies have shifted their attention to employee financial wellness initiatives to add value to their pay packages. Financial wellness programs assist employees in reducing money-related stress and gaining better control over their finances.

Does it matter?

Many problems awaited employees in 2020, including financial hardship, lower labor productivity, and increasing financial strain owing to the pandemic. 

According to a The7thFold’s study: 

  • 50 percent of employees in India are concerned about an uncertain future owing to the Covid-19 pandemic. This was the most stressful aspect, followed by 
  • Personal money (40 percent) and 
  • Career advancement (40 percent). 

Employees with low incomes could not afford the consequences of the pandemic, but those with higher incomes also fared poorly. Employees with yearly salaries of INR 21-30 lakhs p.a. reported the highest risk of stress and the worst levels of mental health. And an employee cannot expect much from an employer under financial difficulty; of course, this will reflect in their performance.


On the other hand, if employees have fewer financial concerns and distractions, their productivity will increase. A financial wellness program can assist employees in achieving financial balance and control now and in the future. Improving employees’ financial well-being can lead to happier employees, lower absenteeism, lower turnover rates, more employee satisfaction, and better corporate performance. 

How can Indian companies take action?

To be effective, financial wellness programs must do more than give information. They must also result in employees making proper choices that contribute to financial success. Here’s data from another survey on employee priorities when they were asked if companies should have a role in encouraging employees to:

  1. Save for retirement (57 percent said yes)
  2. Lead healthier lives (69 percent)
  3. Better manage their money (65 percent), with less than a third opposing such a role for employers in any of these areas.

This demonstrates how critical it is to create a financial wellness program. The following are some of the steps that companies can take to ensure the advancement of their employees:

  • Organisations can collaborate with financial services businesses to educate and assist employees in understanding their income and financial goals and help them build a sustainable long-term financial plan.
  • Frequently, the employment benefits provided do not satisfy individuals with the worst financial standing and who require the greatest assistance. Understanding the requirements of employees at all company levels can help you discover who is most in need and the best solutions for your team.
  • These programs must consider the fact that senior executives, middle management, and young professionals are all in various phases of life and have different demands and difficulties.
  • Another step that can be done is to provide employees easy access to previously earned revenue, which can alleviate some of the stress caused by overdraft fees and high interest rates.
  • Apart from occasional interventions, assisting employees in planning for and saving income tax can be a significant event each year. It is also critical to hold workers’ hands every step of the journey, equipping them with information and effective guidance.

Positive outcomes 

According to a survey conducted by The7thFold, employees who received an increment and bonus were much happier than those who did not. Employees feel valued and appreciated because their employer cares enough to create possibilities to enhance their financial wellness. According to a recent MetLife research on employee benefits trends, two out of every three employees are more worried than they were before the COVID-19 pandemic.

Stressors such as credit card debt, school loans, and retirement planning generate mental stress. According to studies, employees who know how to spend their money well are less worried than those who do not. Offering some assistance on employees’ debt payments might potentially make a significant impact on their overall financial well-being for companies with the resources.

A program like this can also help employees establish better saving habits and deal with unforeseen financial difficulties. Employers must give better tools and resources to educate employees about an emergency fund and encourage them to establish one.

To sum it up..

Because the workforce is changing faster than ever, businesses must examine the implications of employee financial wellness initiatives on the health and engagement of their employees. Employers must first identify and understand these at-risk categories to assist their workers. Following that, a well-planned financial wellness program that can do wonders for an organisation and its workers should be launched.

Personal Loan Without Salary Slip? Yes Possible!

In order to check your financial capabilities for the repayment of a personal loan, the lenders will evaluate many factors. They will ask for proof of income to look into your financial profile before approving the loan. The proof of income is the most crucial factor that lenders will look into as it will determine your ability to pay the EMI payments on time. Proof of income involves checking your income and verifying it through salary slips. 

If you are a salaried employee applying for a personal loan, it may be mandatory for you to submit the salary slip for your loan application. If you cannot provide a salary slip for some reason, you also have the option of asking your employer for a receipt of payment, or you can also submit an income certificate. 

On the other hand, some people may not be salaried employees and may need a personal loan to go through an unexpected event such as paying electricity bills, hospital bills, etc. However, it is possible to get a personal loan without submitting the salary slip if you are self-employed, which means you have to provide alternate sources of income to show your eligibility for personal loans online. Here are a few things you can do if you are self-employed and cannot provide a salary slip. 

How To Get Personal Loan Without Salary Slips

EarlySalary is India’s most trusted online personal loan app that allows individuals to apply for personal loans which are not bound by salary slips. Here are 5 options for obtaining a personal loan without submitting a salary slip. 

  • Alternate proof of income

If you are not a salaried employee and are self-employed, you can apply for a personal loan without submitting a salary slip. But, you will have to provide other such documents to verify your eligibility and your ability to repay the loan. Here are a few documents that you can submit for applying for an online personal loan. 

  • Bank statements: Lenders usually accept bank statements of the previous 3-6 months to check the transactions and determine your financial health. 
  • ITR or form 16: If you are a tax-paying citizen of India and are filing the ITR for a minimum of 2-3 years, you are eligible to apply for a personal loan.
  • Income certificate: You can file for an income certificate to show your annual income to the lender for determining your loan eligibility. 
  • Healthy credit score

Whether you are self-employed or a salaried employee, a healthy credit score is the most important factor for the lenders to determine your loan eligibility. The lender or banking institution will look into your credit report, which reflects your repayment history, debt repayment, and your credit handling abilities. To keep a healthy credit score, make sure you pay all the EMI’s on time and do not miss out on your EMI payment as it will lower your credit score. Aim for a good credit score of 750 or higher, as it will make you eligible for applying for personal loans online without any hassles. 

  • Find a lender with simple eligibility terms and conditions.

If you cannot provide a salary slip, you should look for a lender with simple eligibility terms and conditions. EarlySalary is India’s most trusted personal loan app with simple eligibility terms and conditions for applying for personal loans. With EarlySalary, you can apply for a personal loan with minimum documentation and low interest rates. 

  • Apply for a personal loan with co-applicant 

If you do not have a stable income to show for applying for a personal loan, you can apply for the loan jointly with a co-applicant with a good credit score. The stable financial health of your co-applicant will ensure the lender that you will be able to repay the loan amount and the interest rate. 

Loans Without Salary Slips

If you plan to apply for personal loans online without submitting a salary slip, ensure you have good creditworthiness and a good credit score. You will have to provide alternative documents for showing financial health, such as bank statements, ITR, income certificate, etc. To streamline your loan application and save some time, you can opt for EarlySalary’s personal loan

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs! We’re listening all day on:

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 Download the EarlySalary app here, and be a part of the #OneInAMillion experience.

Grow Your Business With EarlySalary’s Personal Loan

For a self-employed individual, getting personal loans from banking institutions can be difficult because banks need proof of reliable cash flow, a comprehensive business plan, and thriving business infrastructure. The lack of access to funds may cripple your plans to grow your business. However, it is not the case with the EarlySalary personal loan app; you can get up to Rs5 lakh with minimal documentation from EarlySalary, which is your one-stop destination for all your financial needs. 

If you are self-employed and find it challenging to keep up with your business finances or looking to expand your business, then applying for an instant personal loan online is your best option. Now, applying for personal loans with low-interest rates is easier than ever with EarlySalary’s quick and easy loan disbursal options. 

Benefit of personal loans for self-employed individuals

  • Quick application process: The application process at EarlySalary is easy and fast. You can easily fill out the personal loan application from the comfort of your home rather than visiting the banks and standing in queues. 
  • Loan amount: As a self-employed individual, you can get up to Rs5 lakh for your business needs. 
  • Minimum documents required: You need to submit minimum documents for applying for the loan online, including a few basic income proofs, address proof, and photo identity proof.
  • Flexible tenure: EarlySalary allows the self-employed individual to select the term of their loan from 90 days to 36 months. 
  • Fast disbursal: You can get the loan amount credited to your account within 24 hours with EarlySalary’s quick disbursal feature. 
  • Low-interest rates: The interest rates can come as low as Rs 6/per day.  

Documents required for a personal loan 

  • Bank statements: You will need to submit the bank statements of the previous 3-6 months to the lender. The lender will then look into your transactions to determine whether you are eligible for the personal loan and will be able to repay the loan amount and personal loan interest. 
  • Photo identity proof: For photo identification, you can submit an aadhaar card, pan card, driver’s license, voter ID, or Passport. You have to submit any one of the documents for identification.
  • Address proof: For address proof, you have the option to submit anyone from ration cards, Utility bills (Electricity bills, phone bills, etc.), pan card, aadhaar, voter ID. 
  • Tax paid: To show that you are a tax-paying resident of India, you will have to ITR for the past 2 years or form 16. 
  • Business proof: As a self-employed individual, you have to provide evidence of business existence by providing a certificate of incorporation, registration, or other necessary documents. 

Eligibility criteria 

The personal loan eligibility criteria are as follows:

  • You should be at least 21 years of age and not more than 55 years. 
  • Your income proof should reflect the minimum income requirement set by the lender. 
  • You should be a citizen of India. 
  • You should have all the necessary documents for the loan application. 

Factors affecting personal loan eligibility

You need to consider a few factors before applying for a personal loan as a self-employed individual. 

  • Credit score: Your credit score is a crucial factor determining your eligibility for a personal loan as a self-employed person. The credit score shows your previous credit history, like previous loans and credit card payments. A high credit score means that you pay your credit dues timely. Lenders usually look at your credit score before proceeding with your loan application. If your credit score is low, it lowers your chances of getting your personal loan approved. Therefore, it is important to keep your credit score high to increase your chances of getting an instant personal loan online
  • Income: Another factor lenders will look into when applying for a personal loan as a self-employed individual is a stable income. The lender will only approve your loan after determining your capacity to repay the loan. You will have to provide documents highlighting your steady annual income to show that you will be able to repay the loan amount and personal loan interest rates. 
  • Existing liabilities: If you are repaying any existing loans such as home loans or education loans,  the lender will go through all the monthly payments for these existing loans and then check whether you have adequate assets to repay the new personal loan along with the previous existing loans. 


You may need extra funds to grow and expand your business in the market. But, with limited funds in hand, it becomes difficult to manage your business finances. Fortunately, you can always opt for an instant personal loan online with low interest rates and easy installments. However, make sure you consider the factors that can affect your loan eligibility before applying for a personal loan. 

Feel free to get in touch with us for any questions on credit, loans, and your instant cash needs! We’re listening all day on:

 Facebook Page
– Twitter Page
– Instagram Page
– LinkedIn Page

 Download the EarlySalary app here, and be a part of the #OneInAMillion experience