Salary advance vs Insta Personal Loan

Know the differences between salary advance and Insta Personal Loan to make an informed decision based on your financial needs.
Salary advance vs Insta Personal Loan
5 min read
25 July 2023

Emergencies are unpredictable, often catching us off guard and leaving us in urgent need of financial assistance. Individuals often find themselves looking for quick and accessible financing options.

Two lending options that can meet your quick credit needs and can provide you with immediate access to funds are salary advances and instant personal loans, such as the Bajaj Finance Insta Personal Loan.

What is the Insta Personal Loan?

Insta Personal Loan is the latest lending product in the portfolio of Bajaj Finance, offering funds of up to Rs. 12,76,500 to both, existing and new customers.

Let us delve deeper and explore the characteristics of both these options, as well as the distinctions between the two:

1. Loan amount

When opting for a salary advance, you receive a portion of your upcoming salary in advance. While it provides quick access to funds for your immediate needs, it may leave you with a reduced paycheque in the subsequent month, potentially making it harder to manage regular expenses and financial obligations.

An Insta Personal Loan, on the other hand, provides you with additional funds to meet your financial needs while having the flexibility to repay the loan over a designated period. Bajaj Finance Insta Personal Loans come with a high borrowing limit of up to Rs. 12,76,500, making it suitable to fund all your expenses.

2. Application process

The application process for a salary advance is usually internal and limited to the workplace. Employees interested in availing of a salary advance need to submit a formal request through the company's HR or payroll department.

For an Insta Personal Loan, you do not need to go through a long application process to know the loan amount you can get. Simply click 'CHECK OFFER' and enter your mobile number and OTP to view your pre-approved/assigned loan limit.

3. Documentation required

Salary advances may not require too many documents and the processing is, in most cases, a straightforward application process on the company’s portal.

Meanwhile, Insta Personal Loans are pre-approved and, in most cases, customers can get them without having to submit any paperwork. Depending on their profile, some customers may be required to submit documents such as a copy of their identification or bank statements.

4. Loan processing and disbursal

The loan processing and disbursal for a salary advance are managed internally by the employer. Since the employer is already aware of the employee's financial status and job stability, the processing time is relatively quick. The salary advance is disbursed either as a separate payment or through direct deposit into the employee's bank account.

Whereas in the case of Insta Personal Loan, the processing time for an Insta Personal Loan is fast-tracked, ensuring the utmost convenience for customers. In most cases, you can expect money to be credited to your bank account in as little as 30 minutes* to 4 hours.

5. Repayment terms

Since a salary advance is not a loan, the borrower is not required to pay interest on the received funds. Additionally, they are not required to repay the borrowed money to the lender.

The Bajaj Finance Insta Personal Loan offers flexible repayment terms. Borrowers can select a payback period ranging up to 63 months. Customers can also utilise the Insta Personal Loan EMI Calculator to plan their finances efficiently. This calculator displays the projected EMIs for different loan amounts and tenures.

It is advised to conduct a thorough evaluation of both options before making a decision. By gaining a complete understanding of these aspects, borrowers can make an informed choice that aligns with their financial capabilities.

You can learn more about the benefits of an Insta Personal Loan and check your offer online by following this link to our Insta Personal Loan page.

Check offer

Disclaimer

While care is taken to update the information, products, and services included in or available on our website and related platforms/ websites, there may be inadvertent inaccuracies or typographical errors or delays in updating the information. The material contained in this site, and on associated web pages, is for reference and general information purpose and the details mentioned in the respective product/ service document shall prevail in case of any inconsistency. Subscribers and users should seek professional advice before acting on the basis of the information contained herein. Please take an informed decision with respect to any product or service after going through the relevant product/ service document and applicable terms and conditions. In case any inconsistencies are observed, please click on reach us.

*Terms and conditions apply

Frequently asked questions

What is an Insta Personal Loan?

An Insta Personal Loan is a pre-approved offer in which the lender has previously assessed your creditworthiness based on your credit history. Insta Personal Loans are processed faster since the basic approval process is completed ahead of time. With a Bajaj Finance Insta Personal Loan, you can expect the funds to be credited to your account in as little as 30 minutes*.

*Terms and conditions apply

How can I check my Insta Personal Loan eligibility?

There is no need to check your eligibility for an Insta Personal Loan. For existing customers, a pre-approved offer is already available, while for new customers, a pre-assigned limit is generated based on various criteria such as credit score and repayment history. If you are a new customer, all you need to do is click on ‘CHECK OFFER’ on this page, enter your mobile number and verify with an OTP to generate the offer. 

How do you apply for an Insta Personal Loan online?

Insta Personal Loans are immediately disbursed, making the application process much simpler. Simply click on ‘CHECK OFFER’ on this page, enter your mobile number and OTP to check your Bajaj Finance Insta Personal Loan offer. The system will present you with an offer containing a pre-assigned loan limit. You can either accept the provided amount or choose to enter a lower sum that suits your requirements. 

Do you need to check your credit score before getting an Insta Personal Loan?

We evaluate several parameters, including your credit score, financial history, income details, and more, before preparing your Insta Personal Loan offer. As we verify your credit score, you do not need to be aware of your score before checking your pre-approved loan offer. However, it is advisable to practice keeping track of your credit health every few months.

Is advance salary a loan?

A salary advance is a partial payment given to an employee before their regular payday. It is a short-term financial arrangement provided by the employer to cover immediate needs or emergencies. The advance is deducted from the employee's upcoming salary, usually with a predefined repayment schedule.

What are the things you need to know before applying for an Insta Personal Loan?

Bajaj Finance offers Insta Personal Loans to its existing as well as new customers. Here are the things you should know about the loan:

  • Faster processing: You do not need to go through a lengthy approval process associated with regular loans.

  • Instant funding: Since you are screened for your creditworthiness beforehand, the loan disbursal process is significantly shortened. You can get the funds you need in as little as 30 minutes*.

  • Flexible tenures: With Insta Loans, you can pick a convenient repayment tenure ranging from 6 to 63 months.

  • Minimal documentation: Insta Personal Loans require minimal documentation for loan processing.

*Terms and conditions apply.

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