There is always one time in the month that we all as adults look forward to - Salary day. Waiting for that message from work reading ‘salary credited’ gives a truly accomplished and empowered feeling to everyone as it gives them the power to go all out and spend for the next 30 days. But what if we spend all the money in the first 15 odd days and have a sudden financial need in the latter part of the month? A compelling purchase to make, house rent to pay, or medical bills to cover? At pressing times like these, people tend to take early salary personal loans to cover sudden expenses until their next month’s salary arrives.
What is an early salary personal loan?
Very much as the name suggests an early salary personal loan is like a salary advance taken earlier than your salary day. It is a type of short-term, instant personal loan that is given to salaried individuals to meet certain personal expenses before their next month’s salary is credited.
Uses of salary advance loan
Early salary personal loan is also called salary advance loan and can be used to meet multiple financial requirements. Sometimes an unavoidable situation may arise at the fag end of the month when you are tight on budget to financially address the situation. Here are some of the circumstances in which an early salary personal loan will come in handy:
- Wedding expenses - As much as weddings are a celebration to look forward to, if you are close family it also calls for big expenses like buying jewellery and gifts. These are circumstances you can’t compromise and might need to shell out some extra cash
- Medical emergency- This was the most common situation for the past few months during the pandemic when many families were affected by the virus and spent heftily on hospital bills. In unforeseen situations like a medical emergency, it is impossible to wait till your next month’s salary day to pay the medical bills
- Family functions - There is no way one can get away without doing something special for their spouse on their birthday like a candlelight dinner at a fancy restaurant or throwing a small birthday bash with close friends or even a weekend getaway. All of them call for chunky spending which can be an issue if your salary is just enough for monthly expenses.
- Advance bookings/deposits - When you see that 50 inches smart TV you’ve always wanted on sale, or when you come across a lovely compact apartment that you need to do an advance booking payment for, you will need to spend cash out of your salary to grab that offer
- Maintenance expenses- Maintenance expenses can range from home to the vehicles which you own. A sudden breakdown of your car or two-wheeler requires you to give it for service; a faulty kitchen sink or bathroom tap may need complete plumbing solutions, all of which can easily cost a couple of thousands.
These are some of the expenses which do not require you to take out heavy-interest long-term loans but instead opt for short-term and small personal loans that you can repay easily. Salary advance loans help you do just that.
Eligibility criteria, Interest rate, and Repayment
The eligibility criteria to avail an early salary personal loan varies according from lender to lender. But there are common minimum eligibility requirements across all lending institutions. They are:
- An Indian national
- Applicant must be a minimum of 23 years old and a maximum of 55 to 60 years old
- Must be a salaried employee (minimum in-hand salary criteria varies)
- Should provide income proof like salary slips
- Address proof and ID proof like PAN and Aadhar card must be produced
Salary advance loans are basically small personal loans that do not require any collateral as security since the applicant will be a salaried individual. Hence, these loans are easy to avail and provide instant cash disbursal. The amount availed can be as small as 5,000 rupees up to 5 lakh rupees which will be given in the form of a credit line. You can then withdraw whatever amount, as and when required from this personal credit line. Some lenders charge interest for the entire loan amount borrowed, some lenders charge interest only on the amount used from the credit line. The repayment options for these are flexible and can be done in a single bullet payment when you get your salary or can be done in installments as EMI for a short tenure.
Taking a gold loan for instant cash needs
To meet such sudden, personal expenses a better alternative would be to take a gold loan. A gold loan at Rupeek is one of the fastest and cheap loans in the lending market. You might have jewellery that is sleeping inside lockers when you are not using them on a daily basis. You could use this as a means of getting instant cash to meet your short-term expenses, while still safely retaining the gold. You can avail a minimum of 15,000 rupees up to a maximum of 1.5 crore rupees as loan amount from Rupeek against your gold. Some of the attractive features of taking a gold loan at Rupeek are:
- Interest rates starting at just 0.79%
- High LTV ratio
- Facilitating easy loan transfers
- Loan amount disbursal in 30 minutes
You could also avail a gold loan overdraft facility where you can get a credit line against the gold pledged. You can use the money within your credit limit whenever you want and pay interest only for the withdrawn amount at Rupeek. You can forget your worries about meeting expenses till your payday with Rupeek’s fast and flexible gold loans.