How a Salary Advance Can Help You Manage the Month-End Cash Crunch

The end of the month can be challenging for most of us. We often run out of money during this time, with our bank account balance reaching dangerously low levels. This usually happens because you didn't track your spends in the first three weeks of the month. As a result, you don't know where your salary went - all you know is that it's almost over. The situation can get worse if you're hit with unexpected expenses during the month-end. You're already low on funds, and now you'll have to scramble to clear these expenses as well. In such a scenario, what you need is quick access to emergency funds. A personal loan is an excellent solution to help you achieve this, but what if your loan application isn't approved in time? A salary advance can also help you manage the month-end cash crunch. Here's how:

1.  Easy Access to Emergency Funds

A salary-based loan will give you easy and quick access to emergency funds, especially during the month-end. We all know that sanctioning a traditional bank loan is no small feat. It involves a lot of paperwork and a lengthy application process with a lot of scrutinies. Banks only lend to those with a strong credit score, and every bank has a different minimum requirement for it. So, depending on your bank, your application may even get rejected. A salary advance, on the other hand, is much more flexible and convenient. As long as your (very minimal) documentation is in order, you can avail a salary-based loan within 30 minutes to a couple of hours.

2.  Get it From the Comfort of Home

With the current COVID-19 pandemic having ushered us into a new normal, all of us are staying safe at home and venturing out only when necessary. In such a scenario, stepping out to go to a bank to avail of urgent cash is unthinkable. Thankfully, there are many salary advance lenders (including salary loan apps) that give you digital loans. For example, if you choose a salary loan app, the entire application process will happen online on your phone. Once your application is approved, you only need to add your bank account. Your loan amount will be credited directly into it, in a matter of minutes. This way, you can do an urgent cash infusion sitting on your couch itself! Of course – you can apply for an online bank loan as well, but a salary-based loan is much simpler.

3.  Enjoy Dynamic Borrowing Limits

Most of us would require only a small amount of money to get through the end of the month. However, you can't guess what unexpected expenses may hit you then. Let's say you required an extra ₹7,000 on the 20th of the month. You may find yourself wanting an additional ₹15,000 because of unexpected expenses a few days later. But will a traditional bank allow you to borrow only ₹22,000? Not likely. Most traditional banks have very stringent limits on the amount they can lend and its corresponding tenure. You'll find that this is ₹50,000 and 6 months respectively, for most banks. However, salary-based loans (via salary loan apps) offer you the convenience of dynamic borrowing amounts, whether it's ₹10,000 or ₹30,000. You can repay quickly, within 3-4 months too!

4.  Avoid Embarrassment

Availing of a salary advance also saves you from the embarrassment of borrowing from friends or colleagues. Most people don't like asking people for money, especially on the month-end. Your friends might be facing a month-end cash crunch as well. In such a situation, asking them for extra cash will be too awkward. Avoid the unpleasantness by availing of a salary-based loan from a salary loan app!

Wrap Up

The points mentioned above are a few reasons why a salary advance or a salary-based loan can be quite helpful during a month-end cash crunch. You can quite quickly repay the loan amount that you avail using your salary for the next month. If you're looking for a salary-based loan, a salary loan app like KreditBee can help you out. Just download KreditBee from the Google Play Store, complete your profile, and leave it to us to process your application in as little as 10 minutes! To learn more, you can write to us at [email protected].