In a bid to help young professionals tide over the month-end blues, a clutch of companies are offering quick loans online for short durations at 24-36 per cent per annum interest rates.
Or let us take another scenario. Your SIPs (systematic investment plan) and EMIs (equated monthly installments) would normally be due at the start of the month. But, your salary is delayed from normal and will only come in a week later. Again, you need some cash, could be for a short period of time, but you need it immediately. What do you do in the above situations?
Way out
Today, for many young working Indians borrowing money from parents is generally the last resort. Friends can help, but they too could be in a similar situation. You may ask your employer for advance salary, but your employer may not have such a policy in place. This is one need that new age financial technology (fintech) companies are looking to address through a loan product known as ‘salary advance’. Most of these companies tie up with RBI-registered NBFCs to extend such loans.
Despite good planning, a salaried class person may face a financial challenge, especially during the middle of the month owing to some unforeseen situation. In such a case, requesting advance salary from your employer is one fitting way out. However, less than two per cent companies in India provide advance salary support to their employees.
This story is from the December 2017 edition of Outlook Money.
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This story is from the December 2017 edition of Outlook Money.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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