What Is Salary Loan? How To Get What Is Salary Loan?

Salary loans try to solve this problem. Note that some banks offer Salary Overdraft facility to you. As the ICICI Bank salaries overdraft facility. In this you get overdraft facility of up to two month's salary. You can withdraw money whenever you want and deposit it later. After that, you can withdraw money again. But you see this facility does not mean anything more than your salary. I will not call such loans as a salaried loan. What Is Salary Loan? What Is Salary Loan In Hindi? Salary loans (salary loans) are very short term loans. Use such loans for the expenses before coming to the salaried salary and the loan is paid to the loan upon arrival. When might you need such a loan? For now, you have to book the tickets or planes of the plane on the 22nd of the month. Or some important shopping is to be done or any other necessary expenditure has come up. There is not enough amount in your bank account. What would you do? If you have a credit card, you can use your credit card. But assuming you do not have a credit card or the date of payment of your credit card bill before the date of your salary. If you do not pay the credit card bill on time, you will have to pay higher interest and penalty. Salary loan can prove to be beneficial in such a situation. Where will you get a salaried loan? Banks do not give such loans. But there are some private fintech companies that provide such loans. I will also talk about some such company in this post. Some names are: EarlySalary, LoanTap etc. Note that the company can be more, I have only talked about two companies. To give loans, these companies have tied up with banks or any financial institutions. Who Can Apply For Salary Loan? (Salary Loan Eligibility) Now The Talk Of Salaried Loan Is Going On, Then You Must Get Salari. Only salaried person can apply. How To Get A Salary Loan? How To Get Salary Loan? You have to go to these companies website and apply. These companies claim to lend within a few minutes. You may need to upload your bank statement, salary slip, etc. to apply for a loan. Your application does not mean that you got a loan. Loan is not guaranteed for application. The company decides to give you a loan by looking at your information, your documents and your credit score. Salary loans are unsecured loans. You do not need to give any security or mortgages. How Much Salary Loan Can You Get? What Will Be The Period Of Salary Loan? The rules of the website may be different. But yes, the maximum loan will have some link to your salary. EarlySalary gives you a loan of up to a maximum of Rs 1 lakh. No matter what the loan amount is from your salary, there is no mention of this on the website. The loan can be up to 51 days. You can also choose a short term. You will have to bullet repayment at the same time. There is a loan eligibility calculator on the LoanTap website. You can check the eligibility of your loan. The loan amount depends on many things. I tried with many combinations, but no more than 3 lakh loan amount was found. And yes, you have to pay the loan within 20 days. You will have to bullet repayment at the same time. Note that there are more companies that offer you your overdraft facility but I have not discussed such a company in this post. The difference between Overdraft and Salary Loan is that you can withdraw and deposit money several times in the overdraft. What Is The Interest Rate For Salary Loan? Interest rates can vary from place to place. EarlySalary charges about 2.5% per month. The LoanTap charges about 1.5% per month. Now see, this interest rate is high. But because the loan period is very low (41 days in EarlySalary and 20 days in LoanTap), the higher interest rate is probably not such a big problem. If you have to take such a loan every month, then the higher interest rate is a problem. However, note that because salaried loans are very short-term loans, high interest rates are not a big problem. Now interest rates are not such a big problem in salary loan, but you have to pay attention to processing fees or other charges. That's why the loan amount is small. Any fixed charge also spreads on this small amount. For example, understand. early salary loan early salary loan I took this photo from the website of EarlySalary. You can see that on a loan of 30,000 rupees, you will have to pay the processing fee of Rs 354 (inclusive of GST) and stamp duty together to Rs 454. So, this amount is 1.5% of the loan amount. Do not forget that this loan is only for 51 days. Should You Get Salary Loan? If you do not need loan, then you should not take it. But sometimes you may need money for the next salary. Salary loan can definitely be an option. But when it comes to options, then we have to compare it with other options too. Credit Card and Personal Loan Credit Card Vs. Credit Card Vs. Salary Loan According to me, credit card should be your first option. Because you get interest-free credit period. In the salaried loan, you have to pay interest only. There is no processing fee in credit card, etc. But if you have not paid your credit card bill completely then you have to pay higher interest. Also the penalty will be given and interest free credit period will not be available as well. Note that the credit card interest rate (if not paid) can be higher than the salaried loan. If you do not have the option of a credit card for some reason, then you can think of salary loan. But also keep in mind that the salary loan will also be paid in a few days. Credit card or salaried loans can prove to be effective only in short-term financial crisis. If your financial problem is long or complex, then credit card and salary loan will not be able to help you. If you are planning to pay a salary loan to cover your credit card loan, be careful. You will also have to pay the salaried loan within a few days. Personal Loan Vs. Personal Loan Vs. Salary Loans Salary loan is available for a few days. Personal loan is available for a few months or years. If you want money for a few days, then salary loan will be a better option. If you want more amount or you can pay the loan gradually or loan for a longer period, personal loan will be a better option. But note that if you want to prepayment the personal loan, you will have to give some penalty. The interest rate of personal loan will be much lower than the salaried loan. But as I have said before, the short term of salary loan reduces the high interest rate problem to a great extent. Decide according to your needs. Will you hire a loan? Or do you find a credit card or personal loan better option?