Not all of us can maintain a contingency fund to serve us in times of need and urgency. Though financial experts advise us to have one in place to handle at least six months of expenses, it’s easier said than done. Budgetary constraints and rising day-to-day expenses are difficult enough to deal with in themselves. The natural course then is to opt for personal loans in times of need, which can be taken either through traditional channels like banks or NBFCs, or online channels through financial platforms.

Today’s times don’t allow for stringent procedures, over-scrutiny of credit scores, and lengthy waiting periods to get loans or advances. People today are understandably driven towards tech and the convenience and ease it brings. Consumers are also more aware and vigilant, and would like to compare interest rates, formalities and other conditions involved while seeking and opting for a loan. Physically moving from bank to bank can prove tiresome and cumbersome. This is when online portals come to the rescue. A loan seeker can easily compare different websites, interest rates, offers and other facilities offered by these fintech companies and portals online. EarlySalary is one of the leading financial portals in India that makes a borrower’s experience smooth and comfortable. Before we move onto the highlights of online portals and why they seem lucrative over their traditional counterparts, let’s look into all the channels available in India for taking personal loans.


Banks grant loans with or without collateral to their customers at interest rates ranging from 13% to 24% for personal loans. Personal loans are largely unsecured loans, with high interest rates along with non-refundable processing fees of up to 2-3%.

Banks also grant loans against property or other security having comparatively low interest rates of 9.5% to 13%. These are long term loans and usually of a higher amount. These loans are unsuitable for meeting monthly or emergent needs and often take long periods to get approved. If you have taken a home loan already, you can get a top-up loan as well.

Banks, so far, have been the most popular course of obtaining credit. However, with online instant cash portals like EarlySalary, getting a salary advance or a personal loan has become far more accessible and quicker than ever before.


Like banks, NBFCs too depend on credit ratings and banking history of the loan applicants. There are a number of NBFCs that score better in terms of speed, but here the interest rates are higher than what banks offer. The disadvantages are mostly similar to that of traditional banking – with high rejection ratios, unattractive interest rates and long periods of disbursal.

Credit cards

Credit cards offer instant access to funds and flexibility in repayments. But credit card funds can be hugely expensive to the people who might not spend the funds judiciously and let themselves get in debt. The interest rates can be as high as 25-30% and in case of defaults, there are other fees and penalties. Outstanding credit card balances can attract interest rates from 43% to 50% per annum which is much higher than any bank, NBFCs or P2P lending could ever charge.  

Informal channels

Employees often ask for advance payment of their salaries or loans from their employers, while in other cases we might rely on our near and dear ones for a quick loan. These informal channels do not constitute any signed agreement and may or may not come with a rate of interest.

P2P lending (Peer-to-Peer)

Another popular online mode of getting funds in times of need. P2P lending is comparatively new and though gaining momentum, is not suited for individual and personal urgent needs for cash. P2P lending directly matches individual lenders with borrowers, allowing them to take out loans at pre-agreed upon rates of interest. The investors can pick and choose whether they want to give the loan to the registered borrower or not. While the model attempts to offer loans at affordable rates of interest, the rates typically aren’t very competitive, and disbursement times can be long for borrowers with profiles that do not attract many lenders.

Instant Personal Loan Portals

Fintech brands are rapidly establishing online platforms that assist customers with instant loans in the comfort of their homes. These online lending platforms have sorted all the problems and hassles of going to a bank, collecting documents, waiting for approval and then disbursal. They are ideal for emergencies as you don’t need to pass through the stringent and stretched procedures and security checks of the banks. The service is round the clock and you don’t need to wait for the banks to open or ATMs to function.  

EarlySalary is one such known name that gives you easy access to cash with minimum hassles. All you need is to download the app and follow a few quick and easy steps to register – fill in your personal and professional profile and submit your bank statements. Within minutes, the loan gets approved and the amount is transferred to your bank account in the next 24 hours.  

EarlySalary offers you a host of benefits over other online instant cash platforms:

  1. It offers as low rates of interest starting at INR 9 per day.
  2. It is safe and secure – All customer information is protected and not shared with third parties.
  3. It’s quick: you don’t need to is required and the documents required are also submitted digitally.
  4. There’s flexibility on repayments – you could foreclose the loan quicker or continue to pay via EMIs from your future salary. These EMIs will be automatically deducted from your salary account.
  5. The interest rates are fixed and you can avail tax benefits under the Income Tax Act, 1961 as well.

EarlySalary offers a host of products to suit your finance needs like instant loans, salary advances and easy personal loans. As a customer, you retain full flexibility to spend the money as you like. You could get yourself a two-wheeler with EarlySalary, or thanks to partnerships with major brands such as Amazon, EarlySalary also allows you to get an instant salary advance right into your shopping wallets. Live unbound with EarlySalary.  

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