Categories Finance

Everything to know about Salary Loans

What is Salary Loans?

Salary loans can be acquired only by salaried individuals and can be gained quickly. The loan applicants can get salary loans at any point in time in a month but it is necessary that before they apply for a loan their salary account needs to be credited by the company or organization they work for. The procedure for getting these loans is swift and the loans can be repaid over a definite period. The loan applicants can apply for a loan amount that can range from 70 to 140$. Mostly the procedure of filling up the application forms is conducted through the internet. For the approval of these loans, minimum documentation is needed. These are mainly short-term loans and the loan borrowers need to repay the amount taken as loan. In most cases, the repayment is done when the salary of the next month is credited to the account of the borrower. These loans are credited to the bank accounts of the borrowers.

Borrowing these loans makes the borrowers feel that they have 2.5 times more money in their accounts in comparison to their net salary. The borrowers within tenure of 3 to 12 months usually repay these loans. The repayment scheme usually divides the total of the main loan amount and the interests into equal installments that the borrowers need to repay every month for the entire tenure of repayment. These loans are approved utilizing the lending model P2P in which the individuals who have extra funds lend money to the individuals who need it.

These loans get sanctioned based on the eligibility criteria of the loan borrowers. The eligibility criteria for gaining salary loans include the credit score of the borrower, the amount of salary drawn by the applicant every month, the validity of the company or organization the employee works for, the loans already taken by the borrower and so on. The repayment is done through bank payment every month. The borrowers can also pre-close the loan if he or she wishes to do that. Crawford quickly approves salary loans in Philippines. The procedures followed by Crawfort to approve or sanction salary loans are speedy and simple enough. The borrowers in most cases get loans within an hour.

The Advantages Of Salary Loans:

  • The salary loans gain very quick approval. In most cases, they get sanctioned almost in an instant.
  • There are no such hidden fees or closure fees. No prepayment fee is included in such loans.
  • The procedure of documentation is not at all elaborate or complicated. The approval of salary loans needs a minimum level of documentation.
  • The schemes of payment are in most cases flexible. One can adjust the tenure of repayment according to one’s affordability.
  • These loans are sanctioned immediately and are disbursed instantly. The process of disbursal of the loan amount does not require a long time.

Who can Apply for salary Loans? 

There are some fundamental eligibility criteria for borrowers who can apply for salary loans. The loan applicants need to draw a minimum amount of salary from a valid organization or institution. The person applying for salary loans need to have a valid identity proof, address proof, salary statement. The financial institution that lends the money verifies the nationality and date of birth of the person. The borrower needs to be a person belonging to the age group of 18 to 50. The person needs to hold a salary account of his own. Crawfort PH offers salary loans to salaried individuals after verifying all these above-mentioned eligibility criteria.

Necessary Documents For salary Loan Application: 

Some important documents are required to apply salary loans are-

  • Evidence of Residence, which includes water bills, power bills as well as telephone bills.
  • Proof of Identity, which includes passport, driving license, voter ID card, PAN card, Gas bills.
  • Salary certificates such as the salary slips, account statements of the salary account.
  • Photograph proof, which is a clear photo of the loan seeker.

Crawfort offers loans after submitting the mentioned documents and verifying them properly.

Disadvantages Of applying For salary Loans: 

There are some limitations to borrowing salary loans. In some cases, people who tend borrowing money are carried away by the idea of salary loans and borrow more amount than they require. They lack foresight and spend more money than the amount of money they can afford to spend. Also, many borrowers sometimes decide to borrow a big loan amount and solve more than one financial issue with that loan. This leads to borrowing a large sum of money, which at times goes beyond the affordability of the borrower, and they fail to repay the amount within the definite repayment tenure provided to them.