What is Salary Advance?
Salary advances are short-term loans given to employees that are deducted later from future salaries. Some companies allow such advances. The advance amount is deducted from the net income at the end of the month and over the forthcoming months. The salary advances are generally interest-free. Simply, the advance comes from the future salaries of an employee.
Employees are offered short-term loans that are deducted from their future paychecks afterwards. Such advancements are permitted by some businesses. The advance is taken from the net income at the end of the month and in subsequent months. In most cases, salary advances are interest-free. Simply put, an employee’s future salaries are used to fund the advance.
Features and Benefits of Salary Advance Loan
- Minimal Documentation
Submit only a few mandatory documents like residential proof, identity proof, and income proof to get your loan approved.
- No Hidden Charges
We believe in transparency. Hence, no hidden charges are levied on you. For further confirmation, you can check the fine print.
- No Usage, No Interest
Interest is not charged if funds are sitting idle in the account. Interest is only levied when you withdraw money from approved funds, but not on the total amount that is borrowed.
- Flexible repayments
If you are not having money to pay your EMI for a particular month, then you can repay only the minimum amount until you become financially stable. The best part is, you can pay back the borrowed money easily in flexible repayments.
Myths about Salary Advance Loan
- Instant Personal Loans have greater interest rates.
- High loan amounts need a long time to get approval.
- Debtors must own a high CIBIL score to avail instant personal loans.
- Customer service is always inactive.
- You need to submit various documents to apply for an instant personal loan online.
- Online cash loan lenders charge high interest rates.
- Borrowers with existing loans are not eligible for Instant Personal Loan.
6 Reasons to Take Salary Advance
1. Flexibility and ease of use
It’s no secret that getting a bank to approve a loan is a difficult process. In comparison to a loan, a salary advance is far more convenient in terms of processes and flexibility in terms of amount and interest rates. The salary advance is usually withdrawn from subsequent pay stubs, making repayment more convenient. You do not need to set aside money for the return of the advance on your own. You may also borrow any amount you like – it doesn’t have to be a large quantity, and it doesn’t have to be paid back right away. As a result, no extensive or elaborate planning is required for the pay raise.
2. Quick Processing and Disbursal
Anyone who has had to take a personal loan from a traditional bank will let you know how tedious it is to do so. Mainly because it takes weeks and a lot of paperwork for a personal loan to get approved. And when you have an urgent personal need for cash, waiting isn’t an option. Personal salary advance loans on the other hand will generally take only a day to be processed and disbursed.
3. Expenses of Medicine
To offset medical costs, you may have purchased health insurance. However, certain illnesses, treatments, and procedures are not covered by insurance. Some employers’ insurance does not cover your parents, yet they are frequently the ones who need therapy owing to their advanced age. Furthermore, the medical expenditure may exceed the amount covered by the parents’ insurance. It has the potential to put a strain on your finances. For the time being, an Advance Salary Loan can pay these costs and keep you afloat. You get it quickly and may repay it quickly as well!
4. Easy Repayment
With a standard personal loan, you have an EMI date set by the bank, and you must pay the EMI whether or not you have money at the time. When you take out a salary advance, the dates of your payback installments are set to coincide with your paycheck. As a result, the odds of running out of money when the payback is due are substantially lower.
5. Interest rates are low
Interest rates on salary advances are quite low. This aids in preventing and compounding an already existing cash shortage. Salary advances likewise charge interest only on the money that is pulled and utilised, unlike banks, which charge interest on the whole amount as soon as it is distributed.
Salary advances assist both the company and the employee by preventing employees from running into financial difficulties during their first few months on the job. With their immediate approval and speedy cash delivery, salary advance applications are making the procedure more simple and hassle-free. All of the advantages of a salary advance are bundled into one convenient package – complete with merchant interfaces. Start here!
6. Borrowing Small Amounts
A personal loan from a bank often requires the borrower to hold something valuable as collateral. In most situations, these loans are for large sums of money, which would be inconvenient for a salaried worker seeking for some extra income.
5 Reasons You Need to Offer a Salary Advance to Your Employees
1. It Makes Your Employees Happier
This is one of the biggest benefits you, as an employer, can get by offering your employees a salary-based loan. If some of your employees aren’t eligible for a personal loan or borrowing against a credit card, a salary advance facility might be just what they need. Also, such a facility helps them become more productive at work. This will be possible only because they won’t be spending time stressing out about securing emergency funds, which in turn will make them happier, free to focus on their work.
2. Boosts staff Productivity and Concentration
One of the most significant advantages that organisations that grant wage advances to their employees experience is this. Offering financial support to your workers when they need it enhances their happiness, productivity, and attention at work. If one of your workers is concerned about their child’s approaching school tuition or a missing EMI payment, it’s likely that they’re doing nothing but fretting. If you step in and assist them with a salary advance loan, all of their tension will vanish, and they will be able to focus totally on their work.
3. Has a beneficial impact on Recruitment and Retention
A pay advance is a low-risk financing option that your current and prospective employees will enjoy. Offering your employees the benefit of financial assistance in their time of need will really give your company an edge over its peers in terms of recruiting and retaining new and existing employees, especially at a time when most companies are cutting back on perks and benefits in an effort to cut costs.
4. It helps you Stand Out From the Crowd
In today’s day and age, where companies are cutting down on incentive programs and benefits as a means to cut costs, offering such an attractive facility (offering them cash as and when they need it is pretty sweet) can easily set you apart from your competitors. A salary advance programs may give existing employees a reason to stick around with your company, and even offer potential candidates a strong reason to consider joining! This will give them a reason to stick with you and will boost their morale considerably.
5. Shows that you care about Employee Welfare
When you offer your employees financial assistance in the form of salary advance loans, you are essentially also contributing to their financial wellness. This automatically does wonders for your company’s image, brand, and social standing, because it sends out a clear message that you care about your employees enough to offer them the benefit of a salary advance loan.
Where to get Salary Advance?
Omozing helps make Smart Money Moves for a Lifetime. They strive to get lowest interest rates and best terms for your Online Applications at www.Omozing.com . We’ve made business lending smarter, faster and easier by transforming the approval process from stumbling blocks to stepping-stones. This enables borrowers to not just get access to capital, but also understand what areas they need to work on in order to enhance their credit profile. Omozing ensures that Borrowers get a secure, safe and reliable application process that be tracked online.
5 Reasons to choose Omozing
1. Loans from INR 10k to INR 10 lakhs
Personal Loan Interest Rates starting from 0.8% p.m, and Loan amount ranging from INR 10,000 to INR 10,00,000. The Minimum and maximum repayment period ranges from 1 month to 48 months. CIBIL 600+ all company categories (including LLP, Self Employed, Proprietorship)
2. Cutomised Tailor Options
- Depending on your demands, we may provide quick financing of varying quantities at affordable interest rates.
- You have the freedom to utilise your loan anyway you want, whether for business or for immediate personal needs.
- Flexible repayment options depending on your specific cash flow and budget, as well as conditions that is beneficial to your position.
3. Lower CIBIL
While most lenders require borrowers to have a CIBIL score of over 750, at Omozing.com provide loans even with 600. Besides the CIBIL score, we also considers your age, employment status, and net monthly income.
4. Ways to apply
You can apply for a personal loan through us by 2 ways:
1. You can download our Mobile Application from Google app store.
2. Apply on portal using out Personal Loan link
5. Prompt Loan Disbursal
An easy online application process facilitates speedy verification and disbursal of loan. Get KYC verified from the comfort of your home and have our loan manager take care of an instant transfer of funds to your account.