Salary Advance Loan vs Personal Loan: Which is Better?
There is no straightforward answer as to which one is better between a Salary Advance Loan vs Personal Loan. The compatibility depends on what purpose you want to fulfil.
Forced by circumstances, such as an unanticipated medical emergency bill or an urgent relocation, we have to look for support somewhere outside. Some turn to a Salary Advance Loan, while others opt for a personal loan to bridge the cash gap. Although both serve the same purpose of instant cash support, they still hold significant differences.
We’ve detailed a head-to-head differentiation of Salary Advance Loan vs Personal Loan comprehensively. Starting from the basic definition to USPs—there is all you must know before applying for one of them. Let’s explore them and figure out what’s best for you based on the scenario you are in.
1. Loan Amount
If the expenditure is small, a salary advance loan can be the best option for you with a compact loan amount. NBFCs or instant loan apps offer a percentage of your salary based on your eligibility. On the other hand, a personal loan comparatively gives a much larger capital size, fit to cover large-ticket costs. Your salary is treated as a key factor in the approval of each loan.
2. Real-Time Usage
A Salary Advance Loan is designed for micro cash shortages that occur right before your next salary day. For example, routine expenses during month-end(a temporary lean patch) or an unforeseen expense such as a sudden commute or a broken bike. In contrast, Personal Loans cater to major lifestyle expenses like wedding shopping, debt consolidation, medical emergencies, etc. They can easily accommodate both planned and unplanned costs alike.
3. Repayment Window
A Salary Advance Loan typically has a shorter repayment window until your next salary day. It is paid off in a lump sum once you receive the salary. Contrastingly, personal loans offer a longer tenure to settle the loan. Whether EMI, lump sum, or both are the repayment options is subject to the lender’s policy.
4. Versatility
Although a Salary Advance Loan is small in size, it packs a solid punch, transforming a financial pain into quick relief, especially in a precarious financial state at month-end. RBI-compliant online lending platforms effortlessly approve such a loan through fast digital checks, handing over funds in minutes. Alternatively, personal loans are broader, catering to vast needs ranging from small to large. Due to the availability of larger funds, many complex expenditures can be smoothly managed.
Why SuryaLoan is the Best Loan App?
We operate as an RBI-registered NBFC-partnered loan app across PAN India, offering a vast range of loan options personalised according to your unique needs. We don’t believe in the ‘one-loan-fits-all’ theory. All our digital loans are fast, flexible, and user-friendly, empowering individuals to take control of their finances. Here is what further makes us stand out even in the crowded fintech industry.
—Approvals & Disbursals in flat 10 minutes.
—100% Digital, Paperless Process with Apply From Anywhere Facility
—No Collateral & Hidden Charges at all
—Low Paperwork
—Low CIBIL support
—Exclusive Instant Cash Loans for Salaried Individuals
Bottom Line
There is no straightforward answer as to which one is better between a Salary Advance Loan vs Personal Loan. The compatibility depends on what purpose you want to fulfil. For instance, how much you are searching for and for how long. How is your credit profile? How good have you been with your past repayments, and more.
So, you should do your homework beforehand to make an informed decision. SuryaLoan provides both types of loans through a swift online process doable from the comfort of your home.