The millennial generation is the one with a go-getter attitude. With most millennials having successfully established careers, financial independence is a distinct trait of this segment. If you are also a millennial, then you might even believe that there is no point in waiting for having enough savings to buy something you desire. Like most millennials, you might also prefer to avail of a Personal Loan to buy your dream products.
In order to tap into this personality trait exhibited by people in their 20s & 30s, financial institutions are offering Advance Salary Loans for this aspirational segment.
If you are new to the concept of an Advance Salary Loan, then read on to know more about these Instant Loans and how they fit into the modern lifestyle so well.
What is an Advance Salary Loan?
Advance Salary Loan is an unsecured credit offering against the salary of an applicant. Also Known as Payday Loan, the amount offered is directly proportionate to the salary earned by the applicant. The repayment period for these types of loans is generally shorter as compared to a standard Personal Loan, with 30 days to twelve months of the threshold. As far as the interest rate is concerned, it varies according to the lender as well as the profile of the borrower.
How Advance Salary Loans Fit into Millennial Lifestyle?
If you are wondering about the reasons behind the popularity of Advance Salary Loans amongst the millennials, then the biggest reason can be pin-pointed to the seamless integration of these loans into the millennial lifestyle. Let’s put some light on some of the features of Advance Salary Loans to understand the trend:
- Technology-friendly Application Process: Individuals belonging to the millennial generation are too busy with their work and are entirely focused on progressing their careers. Thus, neither do they have much patience or temperament to prepare huge piles of documents to accompany the application. This is where Advance Salary Loans come as a welcome sigh of relief. Most lenders support the online application process for these loans that can be completed within a few minutes through mobile apps and require only scanned copies of the documents to be uploaded. The process of installing the mobile app and registering the profile is quite simple. These features are preferred by millennials and subsequently lead them to apply for Advance Salary Loans.
- Instant Disbursals: Another standout feature of Advance Salary Loan is instant disbursal. The millennial generation is known to believe in getting what they want, instantly. They do not want to wait for several days before knowing the status of their loan application. In case of these loans, instant disbursals are available. For instance, when you apply for an EarlySalary Personal Loan, the company offers instant loans that are disbursed within a few minutes, post the approval.
- Easy eligibility criteria: One more feature of Advance Salary Loans that leads to millennials preferring them is the easy eligibility criteria. Most of the online lending institutions offering these loans have very basic requirements in terms of the minimum salary, credit score, work experience, etc. from their borrowers, and most millennials are able to fulfill those requirements quite easily. This makes Advance Salary Loans a noteworthy option amongst millennials.
For instance, if you wish to apply for FlexSalary Personal Loan, you only need to have a monthly income of Rs. 8,000 or above. The company also accepts applications with low or no credit score.
- No collateral required: Advance Salary Loans are unsecured loans, i.e., there is no need to offer any security to avail this loan. Not only does this feature helps with instant disbursals and easy application process, it also relieves the applicants of any worries regarding losing their collateral. Millennials being financially informed borrowers prefer these options because, in case of any unwanted scenario, they will not have to part with their valuable collateral.
- Attractive interest rates: It is not a hidden secret that the Personal Loan Interest Rate is the biggest factor that needs to be analyzed carefully to understand the affordability of a loan. In order to attract millennial customers, lenders are offering Advance Salary Loans at attractive interest rates. This feature acts as a big draw for applicants belonging to the millennial category.
- Flexible repayments: Advance Salary Loans are available with flexible repayment tenors ranging between one month to one year. Borrowers are free to choose the repayment period according to their comfort level. This feature is attractive to millennial applicants as they feel they are in control of the repayments and ensure timely repayment by opting for a suitable repayment tenure. Moreover, many lenders allow for foreclosure of the Advance Salary Loans without foreclosure charges. Another noteworthy benefit!
- High-value loans: Advance Salary Loans are available for amounts of up to Rs. 2 Lakhs and that too on an almost instant basis. Such high-value loans enable the borrower to make big-ticket purchases effortlessly. This kind of financial freedom is highly sought-after by millennials, who like to buy their dream products on an instant basis to experience the satisfaction they have long desired.
- Multiple modes of disbursal: Various lenders are offering Advance Salary Loans in different modes, including Term Loans or Line of Credit. Options such as a Line of Credit allow the borrowers to readily access the loan amount as and when required but also allows them to pay interest only on the amount utilized, instead of the entire loan amount. This feature makes the loan more affordable and a suitable option for millennials who can easily organize their financials to ensure timely repayments.
While the features of Advance Salary Loans are quite attractive, you should not be swayed by them instantly. Do not forget that they are a financial liability that comes with a significant interest cost, so always use this facility discretionarily during emergencies and not for leisurely expenses.
Also Read: Top 8 Instant Personal Loans Online in 2020 – A Quick List
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