Is EarlySalary a ‘Go-To’ Instant Loan for Emergency? A Review

Updated on: 19 Jan 2024 // 4 min read // Personal Loans
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Gone are the days when low credit score hindered you to aspire for your life goals. With new-age, app-based FinTech lenders you can apply for small cash loans instantly without any hassles. The CIBIL Score is replaced by Social Worth Score to assess your creditworthiness. The range of customers these loans cater to is also an impressive one. Right from a self-employed, to contractor, to a salaried individual, to a college student working part time, all can readily qualify for these instant loans.

So let’s review EarlySalary Personal Loan up to Rs 2 Lakhs. Call it a credit lifeline for millennials or a customised payday-like loan in India, this credit line offered by EarlySalary has been all rage among the young professionals. The lender has already disbursed more than 1 million loans, amounting over Rs 1,850 crore as reported in November 2019.

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Let’s find out the pros and the cons of borrowing from EarlySalary.

What is EarlySalary Loan? How it is different from regular Personal Loans?

EarlySalary offers Instant Loans as personal loans, travel loans, shopping loans and education loans. These Cash Loans are instantly disbursed and offer a complete borrowing & repayment flexibility. You can repay within a few days till 12 months. There is no prepayment penalty.

Unlike regular Personal Loans, Early Salary Cash Loans are offered despite no Credit Score. The eligibility is assessed based against your next salary and social credit algorithm. It is works like an instant credit line & can be used as an emergency fund.

The Pros: Why Go for EarlySalary Loan?

  • By offering small cash loans starting from as low as Rs 8000 to Rs 2 Lakh, EarlySalary credit facility offers you flexibility just like a Credit Card. You can apply for loan seamlessly for all those vital expenses arising prior to payday.
  • The process is seamless as you can complete the credit processing digitally. There are no long forms. It is a quick online form which can be accessed 24X7 online.
  • One of the unique parts is: you can re-apply as soon as you repay the loan successfully. After 3 days you can borrow again.
  • No deposit or collateral is required to avail of this loan.
  • Repayment is flexible and you can even opt for EMI option as per your cash flows.
  • The interest rate is fixed and thus your EMI will not fluctuate during the loan duration. The Early Salary Personal Loan Interest Rates are competitive for short term. For example: You will pay less than Rs.9 per day for Rs.10,000 loan. In case you borrow Rs 10000 for a week (7 days), the interest will be Rs.63.

Thus these loans come handy for urgent cash shortages, where you need loan for a few days & months. When you are borrowing for less than 12 months, the APR doesn’t matter as much as it does for long term loans.

  • There is no pre-closure charge applicable. You can pay out as and when you have surplus cash in hand.
  • Eligibility criteria are also easy to meet: A) You should be an Indian citizen. B) The age should be anywhere from 21 years to 55 years. C) Minimum salary of Rs. 18,000 in Metro Cities and Rs 15,000 in Non-metro regions is required to apply for this loan.
  • Thus biggest USP of these app based loans is the fact that these are available to students as well. Those who are not eligible through banks or NBFCs due to no credit history can be eligible for loan through this app based lender.

How to apply?

You can apply through app or website:

Through App

  • Download app
  • Register as a user. Share basic details such as name, address, age, and employment status.
  • Share social media accounts.
  • Instant social credit score will be calculated.
  • Choose amount & repayment tenure.
  • Agree to all the terms and conditions & submit.
  • Within a few minutes, basis the eligibility, the amount is disbursed to the account.

Through Website

  • You can apply though MyMoneyMantra or EarlySalary By using loan comparison site you can also compare different products.
  • Share your details and create account/ sign up.
  • Share information as required.
  • Choose amount and repayment tenure.
  • On approval, the amount will be disbursed within few minutes.

Things to watch out for:

1. Your social media data is accessed to calculate the Social Worth Score. Therefore, it is important to update all the information on Facebook, LinkedIn and other social media profiles so that the lender can offer you best value for your loan application. At the same time, everyone may not be happy to share the social media information with the lender. Though the systems are highly protected and secure, still you should be careful to not share information that may challenge your eligibility for loan.

2. The rate of interest is highly competitive for small cash loans. It is not ideal for high ticket loans.

3. The feature to borrow & re-borrow should not be accessed frequently. The high dependence on salary advance is not recommended or it can put you in financial mess. It is best to contact a loan expert and plan your borrowing.

You should also compare the different options available in the market and choose the most affordable one only.

Also Read: Borrower’s Guide: Dos and Don’ts for Instant Personal Loan in India

To apply online for Home Loan, Personal Loan, Credit Card, Business Loan & LAP visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 100+ Banks and NBFCs. We have served 7 million+ happy customers since 1989.