17 March 2023
With the rise of new age borrowing sources, the consumer finance space is delivering a wide range of options across segments to its customers. Salary advances and personal loans are new-age borrowing options for retail consumers who offer credit without collateral to salaried professionals. Let’s take a closer look at both:
A salary advance loan is a short-term loan extended to salaried professionals and can be used for any purpose. On the other hand, personal loans are extended to cover larger expenses over a period ranging from 1 – 5 years. A salary advance is ideal for cash-strapped individuals who want quick loans to fund sudden expenses until their salary is credited whereas a personal loan is an unsecured multi-purpose credit given away for any financial need by banking and non-banking institutions.
However, a salary advance has the following advantages:
For example, a salary advance from Fibe gives you that extra money to sail through tough times. A salary advance also offers more flexibility than personal loans. The repayment tenure is pretty flexible and goes up to 5 years; given the uncertainty of life, this long term financial commitment may not be suitable for some borrowers and can create problems in the future. Non-repayment can affect your credit score and may also lead to the rejection of your future loan application. A salary advance lets you borrow and repay in flexible EMIs. The repayment tenure varies from one month to one year. Fibe also allows you to repay the entire amount in one go without any foreclosure.
The most significant advantage of salary advance is the ease and quick speed with which the loan amount can be directly transferred to your bank account. You need to download the Fibe app, share the requisite details, and get money in your bank account in minutes. The entire process is handled online and needs no paperwork. On the other hand, personal loans require more paperwork and are also time-consuming. Banks may take 7-15 working days to approve a loan and transfer the amount. Salary advance acts as a cushion during a financial crisis when money is required urgently.
You can download a personal loan app and avail of this facility. But a credit score is what needed to take a loan. This score cannot be built overnight. If you have recently begun your professional career, you may not be able to borrow the required amount. You can get a short-term loan up to ₹ 5 lacs with a salary advance even at a lower score.
While metro cities provide career opportunities, they also hit your budget hard. Whether it’s a new apartment or the routine food and transportation costs, living in a metro city can be financially challenging. We may not be able to tide over short-term urgent money crunch despite conscious budgeting and savings. This is where a salary advance from Fibe can help. You can use this salary advance for assistance in a calamity, pay bills, make an investment purchase and then pay off with your next paycheck or EMIs.
With no hidden charges and competitive interest rates that are charged only for the number of days you use the money, Fibe’s Salary Advance can help you prevent needing expensive personal loans and meet ends.
A salary advance from Fibe helps you finance a short-term cash crunch until you receive your salary whereas a loan is usually borrowed for a longer time and may be of a higher amount.
Getting a salary advance can help you tackle unexpected financial emergencies or bridge a shortfall until your salary is credited. You can only avail of this facility if your organization provides it. Since it is not dependent on your credit score, you can get it easily and repay it within a shorter duration.
No, getting a salary advance from Fibe is not taxable since it is not considered a part of your income.