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Salary advance loan in Nigeria (How does salary advance work?)
Read all about Salary advance loan in Nigeria.
Life is unpredictable, and as such, there are emergencies that may require money to solve before the end of the month, which is when most people receive their salaries, this is where salary advance loan comes in.
This loan is available to salary earners, and allows you to receive a percentage of your salary, which you can use to solve emergencies.
This loan is usually offered by an employer to the employee, banks & some other financial institutions also offer salary advance loan.
The loan will be repaid from your next salary or from subsequent salaries over the next few months, depending on the agreement.
In this post, I am going to be writing about all you will need to know about salary advance loan in Nigeria and more.
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Let’s get into it then…
What is salary advance loan?
This is a short term loan given to salary earners, which allows you a certain percentage of your salary, and allows you to repay from your next salary or from subsequent salaries in the next few months.
The interest rate on these types of loans is usually small when compared to other types of loans, and does not require any form of collateral.
The amount of money you can receive is dependent on your salary i.e. someone who earns 50,000 naira monthly will be able to get a higher loan amount than someone who earns lower.
How does Salary advance loan work?
If you are working with a trusted organization/institution, you can get a salary advance loan, as long as it is supported by your organization.
Banks like GTbank, Access bank offer you salary advance loans, most especially if you have a salary account with them.
The loan does not require you to provide documentation or any type of collateral, and you can repay the loan from your next salary or from subsequent salaries in the next few months.
For example, if you earn 50,000 naira monthly, you can get a salary advance of 10,000 naira, and will need to pay 3,000 naira as interest from your next salary.
How to apply for salary advance loan?
Banks like GTbank and access bank offer salary advance loan. You can contact your bank to see if you are eligible for salary advance loan. Visit the official website to get their contact details.
If you already have a salary account with your bank, it will be very easy to get this loan.
Advantages of salary advance loan
The below are some of the advantages of salary advance loan:
- You are able to get money before you receive your salary, so you can solve problems, and resolve emergencies.
- The interest rate on this type of loan is usually small than when compared to other types of loans
- Can easily be repaid, as the money will be deducted from your next salary or slowly over the next couple of months.
- Does not require much documentation to apply for the loan
With this post, you should now know all you need to know about salary advance loan in Nigeria. If you need to know more, you can contact us or leave us a comment below, and we will get back to you, as soon as we can.
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