The monthly budget dictates your lifestyle choice. However, there are inevitable expenses such as the rent, education fees, an overdue electricity bill, car repair or a medical emergency that needs your immediate attention. Sometimes, your business revenue is not enough to cover your expenses. You cannot overlook them no matter what. In such scenarios, you can avail the advance salary loan.
What Is an Advance Salary Loan?
Expenses are unpredictable and you cannot keep them on the waiting list till the payday. You can avoid these hurdles and seek an advance loan to ease your expense difficulties. With the advance salary loan, you can stop relying on your expensive credit cards and avail a line of credit worth more than your net salary. They are no different from any other loan type but are designed for a short tenure. They are usually repaid in EMIs. The disbursal of the loan amount is fairly quick with minimal documentation.
What Is the Eligibility Criteria for This Type Of Loan?
Here is a list of criteria to check for the eligibility of this type of loan:
- Age –The age criterion is ideally placed between 23 and 55 years to be eligible for this type of loan.
- Credit Score– The credit score is a universal parameter that is taken into consideration for any kind of loan application. In the advance salary loan, the preferred credit score is 600 and above.
- Income –The monthly net income of the applicant must be more than INR 15,000.
- Bank Records– There must be no bank defaults for this type of loan.
How to Apply for One?
It is very easy to apply for an advance salary loan. You can visit the website of any reputed creditor and check for this loan, assess the features and the minimum eligibility criteria. You can also speak to the customer care for assistance or any other query related to the loan. After comparing the creditors and making sure that you are eligible, you can apply for it online.
What Are the Documents Required for This Type of Loan?
The documentation process for this type of loan is minimal. You can go for a complete paperless application with the online creditors. You can avoid the queue and complete all the work from the comfort of your home!
The documents that you would need to procure are as follows:
- Aadhaar card
- Driving license, voter’s ID card, passport or PAN card
- Address proof- utility bill, bank statements, driving license and the voter’s ID card
What Are the Features of This Loan?
- Tenure– You can avail this type of loan for a period of 2-36 months.
- Processing fee- Unlike the other types of personal loans, the processing fee for an advanced salary loan is usually low.
- Interest rates– This will vary depending on the creditor of your loan. The interest rates can be anywhere between 1.08% per month and 6% per month.
- Maximum and Minimum Amount– The minimum and maximum amount that you can avail will vary from one creditor to another. The minimum amount is usually INR 35,000, and the maximum amount is INR 5 lakh.
Advance salary loans are the cost-efficient alternatives to private lenders and other entities, who charge exorbitant interest rates.