If You Are a Professional, Advance Salary Loans May Come To Your Rescue
Being self-employed or working as a freelancer is likely to expose an individual to the vagaries of an instable income, which makes most people opt for full-time jobs. However, it is also a well-known fact that even receiving a fixed salary at the end of every month does not guarantee financial security. Especially for young professionals, who have just begun their careers, making ends meet can get difficult at times especially in view of the sky-rocketing costs in cities.
While lifestyle choices can be adjusted to fit a budget, fixed rents, emergencies and special occasions- such as a marriage anniversary or the birthday of a loved one- cannot be subject to compromises. Some do choose to borrow from a friend or family member, or take a long-term loan from a bank- but such solutions can be quite inconvenient. Instead, one can avail of an advance salary loan, which can simply be repaid out of the next pay cheque or over a specified time span. There are countless benefits of taking a salary advance, including no credit check, no upfront fees, easy application process, and quick processing and transfer.
An advance salary loan is fundamentally an inexpensive, quick loan until the next payday. This helps professionals tide over a short difficult period.Not only is the loan disbursal swift and easy, the documentation required is minimum. For an individual with a full-time employment, producing the relevant documents is a matter of a few minutes. In the current day and age, FinTech platforms are leveraging technology to deliver flexible loan products that enable salaried professionals to gain financial stability.
Latest innovations in the sector allow for online processing of advance salary requests, allowing customers to apply for the loan from the comfort of their homes. Only a single physical visit is required for verification, and the funds are also transferred directly to the borrower’s account. Subsequently, one can also choose to allow the lender to electronically withdraw the loan repayment and/or finance charge on receipt of the next salary.
Advance salary loan amounts depend upon the individual’s current salary, which helps the professional borrow within his or her repayment capacity, making sure that the loan does not lead to a further financial burden and a good credit history can be maintained. Any salaried individual with a reasonable amount of job experience can avail of the loan, and post-dated cheques can be presented as collateral. Usually, the lender expects a quick repayment, with the loan duration ranging from ten to twenty days. This means that the borrower is faced with the debt for a rather short period of time, which is in stark contrast to the hassles of taking a long-term loan. Repayment can be completed in lump sum, making the entire process extremely convenient.
To conclude, or advance salary loans are very suitable for young and old salaried professionals, as they can be availed of through a simple process and can be repaid in less than a month. They essentially act like a small bridge that helps the borrower move a few steps further and continue to tread the path of financial independence.
Satyam Kumar is the Director and Head of Product and Risk & Credit at LoanTap, a fintech platform delivering flexible loan products to salaried professionals. Satyam enjoys a healthy rapport with senior & top management in banking and real estate firms and has a strong following among middle management professionals across banks, HFCs and NBFCs.