What is an Advance Salary and How to avail it?
How does an Advance salary work?
An advance salary is a genuine loan where the employer deducts wages from the employee’s future pay checks to make repayments. Moreover, advance salary is a private deal between an employee and an employer, who agrees to share a future pay before your monthly payday.
You may subtract the full repayment from one of your salary checks or deduct a smaller amount from several future pay checks.
Apart from private companies, several financial institutions and NBFCs offer advance salary loans to salaried individuals at a meagre interest rate. Advance salary helps you to pay off expenditures related to travel, education fees, utility bills, credit card bills, or sudden medical emergencies.
Advance salary is gaining popularity among young salaried professionals struggling for finances towards the month-end. Besides, an advance salary can prove beneficial for a variety of reasons.
What are the Benefits of Availing an Advance Salary?
Here is how an advance salary proves beneficial and an excellent source for instant funds:
Supports Unpredictable Emergencies
Emergency situations such as medical urgency, same day travel, urgent repairs contribute to unpredictable expenses. It disturbs the set monthly budget which can be balanced again with salary advance loans.
No Collateral
There is no collateral required while availing of a salary advance, unlike a gold loan. You can get a salary advance loan without any security or guarantor like a personal loan. Your only collateral is your monthly income.
Affordable Interest Rate
Advance salary charges low-interest rate. The interest rate is charged by the company only on the money drawn. Compared to the NBFCs, the interest rate is levied on the accumulated amount when disbursed.
Quick Disbursal
Salary advances are much faster and instantly disbursed into your bank account with paperless verification. This saves a considerable amount of time that goes into physical documents verification.
Flexible Repayment Tenure
A traditional personal loan repayment method comes with strict payment dates, but the repayment scheme is easy and flexible in the case of salary advance loans. Mostly the repayment tenure is short, up to 6 – 24 months.
Herofincorp is an instant cash loan app launched by HeroFinCorp, a leading financial company that offers various instant loans. Moreover, Hero Fincorp provides instant solutions to all your financial crises in a paperless format. It offers a loan amount starting from Rs.50,000 to Rs.1,50,000 at a reasonable interest rate.
How can salaried individuals avail Personal loan via Hero FinCorp Instant Personal Loan App?
To avail of a personal loan, you should meet the eligibility criteria set by the lender. Hero FinCorp's eligibility criteria are quite simple. For instance, if you are looking for a personal loan with 23000 salary, you may qualify easily by meeting the following parameters:
- Age should be between 21 – 58 years
- Your minimum income should be Rs.15,000 per month
- Submit last six months of bank statement
- Job with a stable income is mandatory
Paperless Documents
Hero Fincorp enables loan availability with paperless and minimal documentation like E-KYC verification of Aadhar card and PAN card.
How to Apply for an Instant Personal Loan via Hero Fincorp?
The personal loan application is simple. It can be availed easily with the following steps:
- Install the Hero Fincorp loan app from Google Play Store on your android phone
- Register your mobile number and email id for OTP verification
- Use the EMI calculator to calculate the loan amount
- Enter your Aadhar card and PAN card number for personal and financial details
Instant approval and disbursal of the loan amount directly into your bank in a few working days
Frequently Asked Questions
How is the advance salary repaid?
The advance is usually deducted from your future salary installments over a pre-agreed period or as per the company's repayment policy.
Does taking an advance salary affect my credit score?
No, taking an advance salary typically does not impact your credit score as it is not a loan or credit facility.
Can an advance salary be used for personal expenses?
Yes, advance salary can be used for any personal or emergency expenses as needed.
What happens if I leave the company before repaying the advance?
If you leave the company before repaying the advance, the outstanding amount may be deducted from your final settlement or severance pay.
What is the Difference between Advance Salary Loan, Loans, and Advance?
Advance Salary Loan is a short-term loan against your future salary, usually repaid through salary deductions. Loans and Advances are broader financial products with varied terms and purposes. Advance refers to early payment of a portion of your salary or wages, typically repaid from future earnings.
About Hero Fincorp
Hero Fincorp offers a wide range of financial products including Personal Loans for personal needs, Business Loans to support business growth, Used Car Loans for purchasing pre-owned vehicles, Two-Wheeler Loans for bike financing, and Loan Against Property for leveraging real estate assets. We provide tailored solutions with quick processing, minimal paperwork, and flexible repayment options for smooth and convenient borrowing experience.
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