Salary Loans in India

All of us or most of us look forward to the day of the month when we get salaries credited to our accounts even though most of it flows out sooner or later! However, sometimes we may be left with an empty bank account in the middle of the month and might struggle to make ends meet, these are the occasions when salary loans come to our rescue.

Salient Features of Salary Loan

These loans can be availed by salaried professionals any time of the month and like any other loan the borrowed amount needs to be repaid in installments during the agreed loan duration or after the salary is credited.

  • Interest for these loans is calculated monthly and in some cases even on a daily basis.
  • Loans are approved and disbursed online, documentation required is minimal. Some may even offer it through mobile applications. offers an option where the applicant can request a callback and their experts help the applicant with the process of application.
  • Borrowers have the option of repaying within a month after the salary is credited or repay in installments over a few months. The borrower can also foreclose the loan once he/she receives their salary
  • Loan processing is very fast and sometimes even within hours.
  • Generally, getting loans for low CIBIL score holders could be a challenge but people with modest credit score also can avail these loans depending on the lender policies. However, it is important to mention here some lenders do specify the minimum credit score acceptable for sanctioning the loan.
  • Owing to the high-risk nature and fast processing the interest on these loans is pretty steep.
  • Most lenders provide online account access so that the borrower can keep a real-time check on the status of the loan and track how much is the total interest that the borrower will pay or how much is the unpaid amount at any point of time.

Who can apply for a Salary Loan?

Any salaried individual who is a resident of India and fulfills the eligibility criteria for salary loans as laid down by the lender can apply for these loans. Lenders may also lay down the minimum and maximum age limit for the applicant.  The eligibility criteria may also lay down the minimum salary requirements which may vary city-wise and also as per lender policies.

Apart from meeting the eligibility criteria, applicants also need to submit the required documents which include a photograph, address and identity proof, age proof, proof of employment, previous employment records, bank statements etc.

Salary Loan or Personal Loan?

The choice between personal loans for salaried individual or a salary loan could be confusing. Personal loans may have long repayment tenures so if you require funds for short term then advance salary loans should be the preferred choice. When compared personal loans have an advantage that they have lower interest rates as compared to salary loans. Personal loans may have a prepayment penalty clause too in some cases. 

Getting a salary loan may be faster and simpler than getting a personal loan but the choice should be based on factors like loan amount required, duration and of course the overall cost of borrowing.


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