In this modern time, being a hardworking employee is not enough to have a wonderful life. Almost everyone knows that we can’t become rich through a 9-5 job. However, there are some perks that can support you for many years. Some of these perks include medical plans and a myriad of company rewards. One of the most useful perks that you can enjoy is a low-rate salary loan.
A salary loan is a subtype of personal loan from a lending company that’s available to employees. Salary loan lenders are hedged against risk because employees have stable payroll to rely on. Check out the following benefits of low-rate salary loans:
Low Interest and Fees
Since many salary loans have circulated in the market, lenders need to make their rates competitive. This means that you can find loans with low interest and service fees easily. Through Facebook alone, hundreds of lenders are competing for attention. Online lenders are also becoming more popular than banks and other large financial groups. Shopping for loans has never been easier nowadays.
Aside from low interest, employees are looking for lenders with easy application methods. Typically, online lenders will give you results about your loan application within 2 hours or probably less. These lenders are also not strict when it comes to requirements. You just need to submit government IDs and proofs of income. Prior to application, you need to prepare your requirements. This will speed up your application process and can also increase the chance of approval.
Acceptable Repayment Terms
Money lenders earn their profits through interest segmented in payment terms. Longer repayment terms will be easier for your wallet, but the lender will earn more. Shorter repayment terms will let you finish the loan quickly so you don’t need to pay high interest above your principal. So, what is the acceptable repayment term? It all depends on your financial capability. Some borrowers are comfortable with a 3-month repayment period, while others shoot for 5 months. Don’t pick lenders that will stretch out your loan for more than 5 months. Also, you must choose a lender which will let you repay the loan in full once you already have the ample cash on hand.
Even though it’s easy to apply for salary loans, you still need to prepare ahead of time. If you cannot repay the loan, you’d end up with penalties that can exceed your loan principal. This can set your finances greatly and make your life harder. Before applying for one, make sure that you’re ready for the responsibility.