Salary Loans Anyone?
Who hasn’t availed of salary loans? Most likely those not yet qualified to avail of one. But almost all employees have availed of these loans one time or another. They have served as timely solutions to many financial contingencies, especially in times of recession, calamities, and personal emergencies.
Generally, a person must be employed full time to qualify. Some general identification documents are also standard requirements, together with some processing fees which are usually deducted from the loan amount. On average, repayment schedules are between six to twenty-four months. Loan amounts range from ten to fifteen thousand up to fifty to one hundred-fifty thousand. For much larger loans, repayment schedules could reach up to forty-eight months!
Salary Loans Interest Rates and Fees
The standard interest rate for salary loans is usually 2.75% per month. Processing fees are usually 4.5% of the total loan amount. Other fees include documentary stamps and the cost of photocopying original identification documents. Some loans scheme give out the full loan amount, but most deduct the processing fees and give out the remaining amount. Generally, the repayment schedule begins one month immediately after the loan amount has been released. Some, however, allow an additional month. In this case, repayment begins two months after the loan amount has been released.
Salary Loans and Salary Deduction
Salary deduction is the usual scheme used in the repayment schedule of a particular loan. An employee’s capacity to pay is the major criterion in the approval of any loan. If there is any previous loan that has not been adequately repaid, an evaluation is conducted to see if the unpaid balance could be included in the restructuring of the new loan; otherwise, the loan has to be disapproved.
Make plans to get the most out of your loan. Discuss with your loved ones all your alternatives in availing of the loan. Plan your work and work your plan!