Last Updated: January 25, 2023, 16:18 IST
These loans have the unique advantage of being accessible to anyone with even moderate credit scores.
Most banks and lenders give you the option to keep track of your finances in real time. These advance salary loans offer high-interest rates on EMIs.
Advance Salary Loans are short-term loans available to salaried professionals in India. In contrast to personal loans, certain lenders may determine the interest rate for these loans on a monthly or even daily basis. There is a chance that different lenders will have different interest rates and loan terms.
These loans have the unique advantage of being accessible to anyone with even moderate credit scores. Furthermore, a lot of lenders offer advance salary loans that are disbursed in a matter of hours, if not minutes. These advance-pay loans have a very high annual percentage rate because of the quick processing period and considerable risk involved (APR). These loans could assist an individual even though the repayment terms are quite favorable to the lenders.
Eligibility Criteria
When requesting a loan, you must be at least 23 years old.
If you reside in Delhi/NCR, Mumbai, Hyderabad, Bangalore, Chennai, or Thane, you must earn a net monthly salary of Rs. 40,000 or make business profits of Rs.
If you reside in Kolkata, Pune, or Ahmedabad, you must pay Rs. 35,000.
30,000 rupees if you reside in any other Indian city.
Features
Portion prepayment options allow you to prepay your balance in part or in full.
Depending on your bank, loans can be pre-closed with little or no penalties.
Most banks and lenders give you the option to keep track of your finances in real time.
Some lenders offer free credit protection and personal accident insurance. Advance salary loans might be of assistance in any financial crisis.
It is a personal loan that is not secured.
Limitations
These advance salary loans offer high-interest rates on EMIs. Interest rates vary from 15% to 21%, a high range for any bank offering any kind of loan.
Missing an EMI payment means the bank will levy heavy fines which will amount to a huge monthly instalment.
Banks and lenders can introduce difficult terms and conditions on your loan. In the hurry to secure the loan, you may be agreeing to terms that could heavily damage your financial standing.
Most of those who apply for advance salary loans get overzealous in the amount that can be borrowed. They lose sight of the expenditure for which they require the loan, and decide to solve two or three finance-related problems with the same loan.
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