Understanding Salary Advance: Dealing with a cash-crunch during end of the month.

From paid vacations to health insurance, organisations have left no stone unturned to ensure the convenience of their employees. However, with the state of the global economy and rate of inflations we tend to see, money seems to be slipping out of our bank accounts faster than we can earn it. Despite meticulous planning and stringency, salaries are exceedingly difficult to sustain for an entire month. Savings are non-existent, while expenses continue to get transferred to credit cards. Emergency situations such as unexpected medical expenses, children joining college or even an impromptu trip are beyond the scope of most monthly incomes. Credit card bills can often add up to hefty amounts if you are not able to pay off  your bills on time.

This is where the concept of a Salary Advance has come in as a boon, and rapidly gained in popularity.

What is a Salary Advance?

A Salary Advance is fairly self explanatory – it refers to an advance taken by employees in order to carry out any unforeseen or unwarranted expenses. The salary loan given is recovered in installments and is usually charged at very low interest rates. With the concept of a salary advance catching on, many instant loan apps and services assisting with a Salary advance so that people do not have to feel the cash crunch at the end of the month. These salary loan apps are bridging the gap between employees and their expenses. EarlySalary, for instance, is one such salary advance app that allows working professionals to claim advance salary loans at the click of a button. The instant salary advance loan handed over is an easy and hassle free alternative to the large and often unnecessary amount of paperwork that banks require.

Why Salary Advance?

For folks fresh out of college, a salary advance can help you settle into a new city and life:

  • The convenience and flexibility associated with an instant salary advance in terms of interest rates and amount borrowed affords it an upper hand over loans. Additionally, the fact that you need not pay separately for the advance and it gets compensated for evenly through your succeeding salaries makes it more compelling.
  • Thanks to our evolved transactional systems and the tech of today, your salary advance can now make it to your account in less than 20 minutes. Since there is no middle-man involved, weeks and weeks of paper work through your bank gets reduced to a few clicks through an online application. This quick disbursement is a life-saver when you are in need of some quick and urgent cash.
  • A salary advance does not come with the adage of hefty interest. With EarlySalary for example, you can sign up for an advance of up to Rs 2 lakhs at just Rs 9/day.
  • The process does not require an outstanding credit score. In a country like India, where people are already skeptical of borrowing money via traditional loans and credit, a credit score is almost nonexistent for most young Indians. This makes it difficult to apply for loans without expecting a huge amount of interest. Salary advance apps like EarlySalary do not rely solely on your credit score in order to lend you money, making it more millennial-friendly.

How to go about the process?

If your employer offers an instant salary advance, that’d be an ideal scenario. But organisations can often be slow to move on this front, and may require additional paperwork such as long salary advance forms. But this is far from the only option. EarlySalary offers a hassle free salary advance within minutes:

  • All you need is a job with a steady income of at least Rs 20,000/-.
  • Download the app, and apply for a salary advance. The app grants you an approval within minutes, letting you know how much can be lent, depending on your credit and social worth score.
  • The social worth score is drawn up based on your social media accounts and is used as an alternative to your credit score.
  • Once your application has been approved, the money is transferred to your account. You can pay this off later in EMIs at no or little additional cost.

Fill in your details to avail a salary advance

With its impressive partnerships, EarlySalary has a host of offers exclusively for its users with Amazon and Big Bazaar. Via EarlySalary, you can shop on Amazon using zero cost EMIs. So buy that phone you have been eyeing before the prices peak. Services such as school FeES also make it easier to pay off your child’s educational fees at the beginning of the academic year without breaking your back. Thanks to salary advances, no need to worry about cash crunch at the end of the month anymore or lose precious sleep over piled up bills.

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