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Salary delayed at your startup? A payday loan can be your saviour

By Finserv MARKETS - Nov 26,2019
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Salary delayed at your startup? A payday loan can be your saviour

Shubham, 26, has worked at a corporate finance firm for a good two years. He quit the firm and joined his friend’s startup at a salary lower than what he was previously earning. He believes in his friend’s vision is happy being a part of it. However, he hasn’t been paid on time for the past two months because of funding issues. Shubham is worried but not in despair.

Kavya, a 23-year old artist, has always been one for experiences over returns. Her obvious choice for working after college was a promising design startup. She is being paid decently well. Yet, for the past six months, the company has been through a lot of ups and downs and are currently facing a liquidity crunch, and are, thus, unable to pay her on time. Kavya is at the beginning of her career, but this doesn’t come as a downer for her.

Shubham and Kavya are examples of young, energetic, and ambitious youngsters who are ready to take on any financial difficulty. They don’t necessarily know how to, but they figure things out along the way. That’s pretty much their approach towards everything in life.

The dynamism of startups

Startups are dynamic and exciting places to work at. They teach you a lot and give you a unique experience. They help you become ready for your life ahead. However, they are financially unpredictable. A startup could rise for the initial few months, and even shut down in the next few months. In such a scenario, working at one comes at the cost of financial uncertainty.

What if your salary is delayed?

If you are in a situation like Shubham’s or Kavya’s, you need to think of a temporary fix for your finances. You are probably just another youngster who lives from paycheck to paycheck, yet all your careful budgeting goes haywire when your salary gets delayed even by a day. A personal loan should be the first option that comes to mind, since it saves you the awkwardness of borrowing from a person. If that is your preference, you might want to check out Pocket Personal Loan available on Finserv MARKETS. It has a 100% DIY process- you do not need the patience for customer service calls or visiting a branch. Plus, there is quick approval and instant disbursal without any documentation for maximum convenience. You get easy access to small amounts ranging from Rs.10000 to Rs.50000. Interest rates range from 12%-18% per annum and foreclosure charges are zero.

Another option that’s fast gaining popularity is payday loans. Read on to understand how payday loans could work to benefit you.

Introducing instant payday loans

Payday loans, or microloans, or salary advances are a revolutionary borrowing concept that has been around in the West for a long time. India was introduced to them around 2015, thanks to the evolution of the FinTech sector. These are the most instant solutions for the shortfall in your purchasing power. Payday loans are basically loans that are given out with the expectation that you will pay them back on your next payday.

How do they work?

  • Download a payday loan app.
  • Register on the app. This can also be done through Facebook in some apps.
  • Fill a form with your details.
  • Upload the required documents.
  • Authenticate the agreement through an OTP.
  • Once verified, the loan could be in your account within an hour.

What are the plus points?

Payday loans are instant because they require minimum documentation and have faster processing.

  • Even if you have a bad credit score, you can get a payday loan easily.
  • You can use them for anything from settling your credit card payments to paying for your daily expenses.
  • There is no prepayment or part payment fee.

What are the minus points?

  • The interest rates on instant payday loans could be extraordinarily high and they work on a per day rate of 0.08% to 2%. The later you pay, the more difficult it gets as the interest increases. You could instead go for a Bajaj Finserv Pocket Personal Loan, available on Finserv MARKETS at an attractive interest rate of 12%-18% p.a.
  • Late payment could be charged at 4% per day, further worsening your situation. You might want to go for a Pocket Personal Loan with a flexible EMI option of 1 or 3 EMIs.
  • Processing fees could be anything between Rs.150 to Rs.5000 or 2% of the principal amount.

The verdict

If you are confident that you can pay it back on your next payday, go for a payday loan. If you are not sure about your repayment capabilities, you might want to go in for a Bajaj Finserv Personal Loan, or Pocket Personal Loan, available on Finserv MARKETS. It can be approved within minutes, and is completely online with minimal or no documentation.

“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”

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