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Salary Advance Loan – How to Apply?, Eligibility, Highlights

Written by - Akshatha Sajumon

March 14, 2023 9 minutes

In India, there is a huge population that depends on their salary income to meet their financial needs. However, sometimes there can be some sudden obligation that may drain the entire salary before month-end. Also because of the Covid 19 pandemic, many salaried employees have had to take a pay cut which has led to some cash crunch for such employees. In such cases, people have to either depend on their friends or extended family or take short-term loans from private moneylenders who take undue advantage and charge extremely high interest. 

A salary advance loan is a good alternative in such cases. Given below is the meaning of salary advance cash and related details. 

What is a salary advance loan?

Salary advance cash is a form of personal loan that is usually disbursed within 24 hours of loan approval. These loans are short-term loans with flexible repayment periods like paying in full immediately after getting the credit of the following month’s salary credit or by paying in installments for the agreed tenure of the loan. There may be many reasons where the applicants can take a salary advance loan like paying the house rent  paying the children’s school fees, paying for important financial commitments, etc. 

Who is eligible for a salary advance loan?

Personal loans are sanctioned to salaried and self-employed persons. Salary advance loans on the other hand are sanctioned usually to salaried applicants only. The concept of salary advance loans is relatively new and has been gaining huge popularity on account of various fintech platforms. 

Every lender providing salary advance loans has their own set of eligibility criteria that have to be met by the applicants to get the sanction of these loans. Some of the common eligibility criteria for salary advance loans set by majority lenders are mentioned below.

Age Minimum age – 21 yearsMaximum age – 55 years to 60 years (depending on the lender) 
IncomeThe minimum income required to be eligible for salary advance loans by most lenders is Rs. 15,000 to Rs. 20,000 as per lender guidelines.
Credit scoreMajority of lenders require the applicants to have a  of 750 or more. However, some lenders also provide the salary advance loans if the applicant has a credit score of 600 or more. The rate of interest in such cases will be higher though. 
Source of incomeLenders require the applicants to have a steady source of income. 

When do you need salary loans?

Some of the situations in which one may need salary loans are:

  1. Emergency Expenses: A salary advance loan can be useful when unexpected expenses arise, such as medical bills or car repairs, and the borrower needs quick access to funds.
  2. Short-Term Cash Crunch: If a borrower is facing a temporary cash crunch, a salary advance loan can help them cover their expenses until their next paycheck arrives.
  3. Debt Consolidation: A salary advance loan can be used to consolidate high-interest debt, such as credit card debt, into a single, more manageable monthly payment.
  4. Delayed Salary Payment: If a borrower’s employer has delayed their salary payment, a salary advance loan can help them meet their financial obligations until they receive their salary.
  5. Investment Opportunities: A salary advance loan can be used to take advantage of investment opportunities that require immediate funding, such as a time-limited stock market offer.

Important factors to consider before getting salary advance loan

Some of the factors to keep in mind before getting salary advance loan are:

  1. Eligibility Criteria: Before applying for a salary advance loan, borrowers should review the lender’s eligibility criteria, which may include minimum income requirements, credit score, and employment status.
  2. Interest Rates and Fees: Borrowers should compare interest rates and fees across different lenders to find the most affordable option. It’s important to note that salary advance loans often have higher interest rates than traditional personal loans due to their short-term nature.
  3. Loan Amount and Repayment Period: Borrowers should consider the loan amount they need and the repayment period they can afford. It’s important to avoid borrowing more than necessary and to choose a repayment period that allows for comfortable repayment without stretching finances too thin.
  4. Processing Time: Borrowers should consider the processing time for the loan, especially if they need funds urgently. Some lenders may offer faster processing times than others.
  5. Lender Reputation: Borrowers should research the lender’s reputation before applying for a salary advance loan. This can include reading online reviews, checking the lender’s ratings with regulatory agencies, and reviewing their customer service policies.
  6. Other Terms and Conditions: Borrowers should carefully review the loan agreement and any other terms and conditions before applying for a salary advance loan. This can include prepayment penalties, late payment fees, and other charges.

What are the highlights of salary advance loans?

The salary advance loans provide instant monetary relief to meet the necessary financial obligations. These loans come with many attractive features that make them a very convenient option for applicants facing a cash crunch. Some highlights of the salary advance loans are mentioned below.

a. Amount of loan

The amount of loans that can be sanctioned as salary advance loans is different for every lender based on their guidelines. The salary advance loan can be is Rs. 5,000 to Rs. 5,00,000. The actual amount that can be sanctioned to any person will depend on their eligibility and various other factors like lender guidelines. 

b. Tenure of loan

Salary advance loans are short-term loans that are provided for flexible tenure. The tenure for such loans can be for a few days or up to a maximum period of 5 years. The tenure of the loan will depend on the needs of the applicants and the loan can be repaid in easy installments or in a single payment as per the agreement between the lender and the borrower.  

c. Rate of interest

The rate of interest for salary advance loans is quite high as compared to regular personal loans. These loans can be in the range of 20% to 50% depending on the lender. The rate of interest is based on many factors like the credit score of the applicant, the loan amount, the tenure of the loan, etc. 

d. Instant loan disbursal

The key feature of a salary advance loan is the instant disbursal of funds after the loan is approved. The funds are disbursed within 24 hours in most cases which provides instant cash relief to the borrowers. 

e. Minimal documentation

The documentation process for salary advance loans is quite simple. Applicants are not required to submit any excess documentation. Simple KYC documents along with the duly filled application form are to be submitted for a salary advance loan.

How to apply for a salary advance loan?

The application process for salary advance loans is quite simple. The applicants can make an online application for these loans through the website of the lender or through the mobile application of the respective lenders. 

The mobile application of the lender can be downloaded from the Google Playstore or the Apple AppStore as the case may be. After downloading the application or visiting the website of the lenders, the applicants will have to register and then login to the portal. Post logging in the applicants will have to provide the necessary details like personal details, professional details, the amount of loan needed, tenure of the loan needed, etc. 

After providing the necessary details and the documentation along with the application form, the loan will be sanctioned and the amount will be disbursed to the borrower’s account within 24 hours of loan sanction.

What is the difference between salary advance loans and personal loans?

Salary advance loans are a form of personal loans. However, there are certain basic differences between the two. Some of these differences are tabled below.

CategoryPersonal LoanSalary Advance Loan
Eligible applicants Personal loans are extended to salaried employees as well as self-employed persons.Salary advance loans are usually extended to salaried employees.
Rate of interest The rate of interest for personal loans is usually between the range of 9% per annum to 24% per annum. The rate of interest for salary advance loans is between 20% to 50% per annum.  
Loan disbursalPersonal loans are usually disbursed within 24 hours to a maximum of 7 to 10 days Salary advance loan is disbursed within 24 hours of loan approval.

Who are the top lenders for salary advance loans?

There are many lenders who provide salary advance loans to eligible applicants. Some of the top lenders of salary advance loans are,

LenderAmount of loanRate of interestTenure
Money ViewRs. 5,000 – Rs. 5,00,000Starting from 1.33% per monthUp to 5 years
MoneyTapRs. 35,000 – Rs. 5,00,000Starting from 1.08% per month2 months – 36 months
Flex SalaryRs. 4,000 – Rs. 2,00,000Starting from 2% to 6% per month approximatelyFlexible loan tenure
Simply CashRs. 15,000 – Rs. 2,00,000As per the lender’s guidelines1 year to 2 years
EarlySalaryRs. 5,000 – Rs. 5,00,000As per the lender’s guidelinesUp to 24 months


A salary advance loan is an excellent option for salaried employees to meet their obligations in the time of a cash crunch. The rate of interest is higher for salary advance loans as compared to personal loans. However, access to instant funds and flexible tenure proves to be an efficient tool in times of need.  


What is the usual tenure for salary advance loans?

The usual tenure for salary advance loans is anywhere between a few days to a maximum of 5 years. The actual tenure for the salary advance loan depends on the needs of the borrower and the lender guidelines.

What is the maximum loan amount available under salary advance loans?

The maximum loan amount available under salary advance loans is Rs. 5,00.000

Is salary advance loans available for salaried employees not having stable employment?

 Lenders offering salary advance loans prefer extending these loans only to salaried employees having stable employment. This ensures the steady repayment of the credit extended by the lenders.

What is the rate of interest for salary advance loans?

The rate of interest for salary advance loans is between 20% to 50% approximately depending on the lenders.

Are salary advance loans secured or unsecured loans?

The salary advance loans are categorized under unsecured loans.

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