Cash Advance Loans
Not having a financial plan can often land you in trouble. Not just this, frequent use of credit card and paying only the ‘minimum balance ‘each month can hurt your credit score too. Many young individuals today end up over splurging due to which they are often on a lookout for loans that can help them settle their debts. And even if you are one of them, then it’s time you opt for an advance salary loan. Do you usually run out of cash in the middle of the month or are you tired of receiving late salary each month, then an advance cash loan is the best way to get easy and convenient access to funds. An advance salary loan is a loan that is offered to a salaried individual temporarily. This type of loan is usually offered for a tenure of 3-12 months and can be repaid in EMIs. The interest rate for this type of loan varies from lender to lender and can range anywhere between 1%- 15% depending on the loan amount and tenure. The loan can be availed on paying a processing fee and on meeting certain eligibility requirements.
Eligibility Criteria for getting an advance cash loan
- You should be a citizen of India
- You should be aged above 23 years
- You should be drawing a minimum of Rs. 30,000- Rs. 50,000 per month. The monthly income requirement may vary depending on the city you reside in.
- You should hold a salary bank account
Documents required for getting an advance cash loan
- 3 passport size photographs
- Identity proof i.e. PAN card, driving license, Voter’s ID
- Address proof i.e. Aadhar card, utility bill, ration card
- Income proof i.e. last 3 months salary slip and last 6 months bank statement
- With the above documents, lenders can also ask for your previous company’s offer letter, employee ID, relieving letter and Form 16
How to apply for cash advance loan in India?
Below is the application process that you can follow to avail a cash loan in India. Typically, most of the lenders have the same process. The broad steps are as follows:
- Fill out the application form: The first towards getting a cash advance loan in India is to fill out an application form online or offline. Most lenders have an online process wherein you are required to enter your basic KYC and professional details. You also have to mention the reason you are availing the loan. Few lenders allow you to upload your salary slip, selfie, PAN card and Aadhar card online.
- Wait for approval: Post submission of all the required documents, you will have to wait for the approval. Most lenders in India give you instant approval as their credit systems work on algorithms that help them define an individual’s loan eligibility amount.
- Submit additional details: Once the loan amount is approved, you will receive an SMS or an email from the lender asking for additional details. These additional details would mainly be your professional email ID, selfie, address proof, office address proof, offer letter, appointment letter and others. You can upload these documents on the lenders' website or app or email them the same.
- Loan disbursed: On successful submission of the additional documents your loan will be disbursed in just a few hours. The loan amount would be credited to your salary bank account.
Advantages and disadvantages of cash advance loan
Wondering about the pros and cons of getting a cash advance loan, read below about its advantages and disadvantages.
Advantages of cash advance loan
- Easy to get: These loans are easy to get as the lenders do not go through any stringent verification process. Simply submitting your salary slip, identify and age proof gives you access to this type of loan.
- Helps you in case of emergency: Getting a cash advance loan is one of the best ways to get rid of an unexpected financial situation.
- Fast and convenient: The loan application process for this type of loan is fast, therefore giving you money without any hassles.
Disadvantages of cash advance loan
- Expensive than other types of loans: The interest rate on cash advance loans is generally higher than other types of loans. Interest rates vary from 15%-27% that can cause a dip in your pocket.
- Longer the tenure, more you pay: The longer the tenure of the loan is, the more the money you end up paying. This also means that if you miss out on paying even a single EMI that your credit score dips and you also end up paying the heavy late payment penalties charged by the cash advance lenders.
- You may fall into a debt trap: Frequent use of cash advance loans can land you in a debt trap as you would not just end up paying the principal amount but also the interest rates, processing fee along with late payment fee if any. Therefore, it is important that you should only opt for this type of loan when you know you will be able to pay back the lender on time.