An Early Salary Loan is a type of instant personal loan borrowed from a lender, mostly registered with NBFC. It’s a cash amount from your monthly salary that is paid to the borrower in advance due to their own needs. Such cash loans are available to borrowers instantly. Thus, early salary loans are a good option during a cash crunch.
Features of Early Salary Loan –
- Instant and Hassle-Free Process:
Early salary loans are short term loans that do not require a long process, unlike traditional methods. Lenders have their set criteria to pass the loan applications. Thus, saving the time taken in the application process.
- Flexible Tenure:
From amount customization to repayment, borrowers are given the flexibility to choose as per their preferences. Tenure plans are offered by lenders from which borrowers can select the tenure they find suitable for repayment.
- Eligibility Criteria For Early Salary Loans:
You can apply for an early salary loan if you are earning a minimum of 15k per month. Eligible borrowers can avail of a cash loan against their salary to fulfill their basic or emergency needs.
- Affordable Interest Rates:
Lenders provide early salary loans at an affordable interest rate. Being short-term loans, the cash amount is less than the traditional loan A small amount of cash would give the borrower a less EMI.
- No Security Required:
Such types of loans are short-term and don’t require any collateral.
Documents Required For Early Salary Loans –
Early salary loans can be avail by following the steps provided by the lender. Below are the basic requirements to apply for an early salary loan. The borrower must have attained the age of 20 (or mentioned by the lender). The borrower must show their income proof, PAN card, ID proof, proof of residence, last 3-month bank statement (where salary is credited), etc.
These documents are sorted do the credit check of the borrower. Once the borrower has their credit check done, the loan process begins.
Benefits of Early Salary Loan –
- Quick Access to Cash:
Cash needs can arise anytime due to emergencies, paying monthly dues, parties, functions, etc. Usually people have thier own savings, insurance, FDs, etc that can be used during the time of emergency. Emergencies and funds required for it are not known in advance. Using up savings can make you short oin funds, the next time when you need it for your other plans also. In such cases, instant cash loans are helpful to meet the urgent needs for funds.
- Improve Credit Score:
Credit scores are an important aspect when you apply for big amounts of loans. A low credit score can reduce the chances of you getting the loan amount approved on time. Short-term cash loans can help you repay your dues on time and improve your CIBIL score.
- No Collateral is Needed:
There is no need to put anything as security to avail of a short-term cash loan.
At the end of the month, most of our salary gets exhausted in monthly bills, shopping, grocery, parties, etc. Though these are routine requirements that would get sorted with next month’s pay. But it would not help an individual deal with unexpected expenses. Shifting home, wedding functions, and emergencies are a few examples where people can face the cash crunch. In such cases, Early salary loans can be helpful to manage the finances better. It is very important to apply for the loan amount that you need. It is better to avoid taking loans for small needs that can be adjusted unless you will find yourself in a debt trap.