Advance Salary Loan
In need of funds before pay-day? An advance salary loan is often what comes to mind. But now, you can download MoneyTap and get a line of credit that you can borrow funds from when you are in need of an advance salary loan. Think of it as your advance salary loan app.
Receiving a fixed salary at the end of every month should ideally guarantee financial security. Well, sometimes it doesn’t. The sky-rocketing costs in the cities have made making ends meet difficult at times. Sometimes, certain immediate expenses spring up that can’t wait till the salary comes in. These are the times when you need a bridge to take you through till your salary arrives. Some choose to borrow from a family member or a friend and some take a long-term loan from a bank, but unfortunately, these solutions can prove to be quite inconvenient in the long run. Instead, an advance salary loan can help you meet your financial obligations.
In today’s time and age, FinTech platforms deliver flexible loan products that can help you take care of your financial needs without having to wait for the salary credit. You can simply repay the entire amount with the next salary pay cheque or repay the amount in instalments over a specified time span.
What Are Advance Salary Loans?
As the phrase suggests, an advance salary loan is a loan ahead of your salary. A salary advance loan is a quick solution to get a hassle-free loan when you need it without having to go through the embarrassment of asking someone for money.
Situations Where You May Need an Advance Salary Loan
While you make lifestyle choices to fit a budget, there are certain expenses that you just cannot put off until a later date. Such occasions cannot wait for your salary to be credited. However, these urgent financial obligations can be met by borrowing an advance salary loan. Here are some of the situations where you may need an advance salary loan.
There could be a time when you find a lovely apartment or house that you want to rent, and you need to put down a deposit to book it. There's a chance that someone might put down a deposit before you do. You don’t have the money as your salary for the month is yet to kick in; advance salary loan can help in times like this.
Child's school expenses
You definitely cannot postpone your child’s school expenses as those occasional big projects occur when they occur, and you have no control over that. Fees are something that you have planned for, but these occasional expenses could sometime be pretty big and might need an advance salary loan.
Car repairs, most of the times come without any warning and they can’t wait till your salary comes in; advance salary loan can help you repair your car and get it back on the road, so you don't stay strangled.
Electricity and other bills
Your bill payment due dates are generally around the 25th of the month and at times there are changes that you are running short of cash; advance salary loan can help you pay the bills on time when you've run out of cash before bill dates.
Buying an anniversary gift for your spouse
We often tend to leave gifts unplanned for and when it’s time for anniversaries or other occasions, there could be a chance that you've run out of funds. An advance salary loan can help you save the day in times like these.
Advance Salary Loan Comparison
As convenient as advance salary loans are, they could add to your financial responsibilities instead on easing them at times as you will need to plan for paying the loan back with interest. The table below compares various advance salary loan lenders on the basis of loan tenure and the interest rates they offer:
|Lender||Loan Tenure||Interest Rate|
|MoneyTap||2 months to 36 months||1.08% per month|
|EarlySalary||7 to 43 days||2.5% per month|
|Flex Salary||Not Fixed. You can decide the loan tenure||2-6% per month|
|PayMe India||2 to 30 days||2-6% per month|
|CrediFiable||6 months to 36 months||10.99 per annum|
The comparison table reveals the reasons why taking a loan from MoneyTap makes sense. MoneyTap not only makes loan repayment easy for you, it also saves money on the interest paid. MoneyTap loan is offered to you at an interest rate of 1.08% per month, which is much lower than what other lenders who give advance salary loans offer.
Download for FREE!
MoneyTap Use it Like an Advance Salary Loan App
MoneyTap is an app that offers a line of credit that you can get instant loans from. It can work for you as an “Advance Salary App” or “Early Salary App” giving you financial convenience with the following benefits:
Easy Loans – No Paperwork
MoneyTap offers instant loans in India with a simple paperless application. You don’t need to take leave from work to go through rigorous bank processes and hassles. You can upload all your documentation on MoneyTap’s easy online app without even making a visit to the bank. Here is the list of documents you’ll be asked for:
- Identity proof (Driving license/Voter ID/Passport/Aadhar/PAN)
- Address proof (Driving license/Voter ID/Passport/Aadhar/Utility Bills/Scheduled Bank Statements)
- Original photograph
Minimum Eligibility Criteria
You need to be above 23 years and below 55 years of age to avail of a loan from MoneyTap. Individuals with a regular source of income of minimum in-hand salary of ₹ 15,000 per month can apply.
Flexible Repayment Options
MoneyTap loans can be availed of at any time in the month. These instant loans also act as salary advance loans or as early salary loans. You have an option to pre-close the loan as soon as you receive your salary for the next month. There are no foreclosure charges applied if you choose to prepay the loan in full. You also have an option to repay the loan in monthly instalments (EMIs) over a defined tenure ranging from 2 months to 36 months and for amounts between ₹ 35,000 to ₹ 5 Lakh.
How to Use MoneyTap as Advance Salary Loan
The loan offered by MoneyTap can conveniently give you the benefits you seek in an advance salary loan without going through the hassles you would otherwise. Here’s how you can use it as an early salary loan or advance salary loan:
- Download the app and register with your personal details. Your eligibility is evaluated, and then a personal credit line is instantly approved for you.
- This personal credit line can be anything from ₹ 35,000 up to ₹ 5 Lakh. Withdraw whatever amount you need from this personal credit line.
- Depending on your need, you can withdraw as low as ₹ 3,000 and as high as your approved credit limit. The interest will be charged only on the amount you use.
- You can repay the loan amount either in one go once you receive your salary or spread the repayment over a loan tenure from 2 months to 36 months depending on your repayment capability. If you want to make a full prepayment of your loan, you will not be charged a foreclosure fee.
- MoneyTap offers loans with a much lower interest rate. You will pay an interest of 1.08% per month only on the amount you use from your credit line.
- Once your current financial need is met and the repayment is done, the full approved personal line of credit is live again to help you stay prepared for any future cash needs.
So, if you have financial needs that cannot wait until your salary is credited, explore instant loans with MoneyTap. Download the app now!
The duration of the advance salary loan differs from bank to bank. Generally, with advance salary loan, borrowers are expected to repay it within a month, a month or over a period of few months. With MoneyTap loans, you can repay the loan amount within 2 months to 36 months.
With MoneyTap, the minimum loan amount is ₹ 35,000 and the maximum is ₹ 5 Lakh. You pay interest only on the amount you withdraw.
- ₹ 499 + GST as Annual Line Setup Fee
- 2% + GST as Processing Fee
- Zero foreclosure penalties
- Late payment fee – penalty charged
The advance salary loan amount is decided based on your loan tenure, CIBIL Score, your monthly in-hand salary, and ongoing EMIs if any.
There is no set formula to calculate what loan amount you are entitled to get. However, it mostly depends on your monthly income. While processing your advance salary loan application, the bank or lender checks whether you have enough money to repay the equated monthly instalments (EMIs). Firstly, the bank or lender will check if the EMI amount is lower than 50% of your in-hand salary. Secondly, it will check whether you have any ongoing loans. For example, let’s assume your in-hand salary is ₹ 20,000. The bank will limit the loan amount to ensure that you are not paying more than ₹ 10,000 as EMI. This logic is applied even if you do have other loans to repay.