Do you need a salary advance loan in Kenya
With expenses increasing consistently, it is understandably challenging for individuals to pull through the entire month with their salary. Receiving a fixed salary at the end of every month should ideally guarantee financial security, but sometimes, there is a possibility of anyone facing a shortage of money due to unseen situations. The sky-rocketing costs in the cities have made making ends meet difficult at times. Sometimes, certain immediate expenses spring up that can’t wait till the salary comes in.
These are the times when you need a bridge to take you through till your salary arrives. Some choose to borrow from a family member or a friend and some take a long-term loan from a bank, but unfortunately, these solutions can prove to be quite inconvenient in the long run. Instead, an advance salary loan can help you meet your financial obligations.You would have received advice on planning in advance and saving 20% of your monthly income as it might probably be enough to meet emergency circumstances. But what if the money you saved is not enough to cover this immediate need?
How would you approach this situation? borrow from a friend or banks?
Mombo Sacco deliver flexible loan products that can help you take care of your financial needs without having to wait for the salary credit. You can simply repay the entire amount with the next salary pay cheque or repay the amount in instalments over a specified time span.
By Mombo Sacco | August 11, 2021 | 4 min read |
What is a Salary Advance Loan?
Salary advance is a short-term loan open to all salaried employees. You can receive up to 70% of your previous month’s net salary. This loan is payable upon receipt of the next month’s salary. A salary advance loan is a quick solution to get a hassle-free loan when you need it without having to go through the embarrassment of asking someone for money. Mombo Sacco app has done away with the tedious and lengthy paperwork that would accompany the loans sanctioned at banks and other saccos in Kenya.
What is the difference with a Salary Advance?
Salary Advance loan is a short-term loan that is extended to salaried professionals. It can be used for any purpose such as medical expenses, covering huge expenditures, or any other emergency.
Features & benefits
1.) 1-hour processing for new customers
2.) 10 minutes processing for existing customers
3.) Interest pro-rated based on number of days
4.) Access multiple concurrent loans within your limit
Why should you choose a Mombo Sacco Salary advance loan?
1. ) Easy Application
The first noticeable thing is the speed with which salary advance loan applications work at Mombo Sacco. This is because, with minimal requirements, you can take out a salary advance loan. All you need is to have at least Ksh 15,000 in your savings account then just fill out an online form and submit the required details/documents. That’s it! Your salary advance loan is on its way
Borrowing smart is the way to go; don’ t go into it with your eyes wide shut, blinded by the excitement of what you’ re getting. Debt isn ‘t bad, ignorance is. Here’s how you understand the real cost:
In addition to your potential interest rate, ask your lender about the Annual Percentage Rate (APR) for the loan. The APR includes all the extra charges – like the accounts, loan processing, and origination – and will give you a more accurate quote of what you’ll pay.
Ask if there are any prepayment penalties or extra costs. With this information, you’ II know whether or not your business can comfortably pay back the loan that you ‘ re planning to take.
2. ) Rates of Interest
Mombo Sacco Salary advances unlike banks, charge lower rates of interest, we levy interest only on the money that is drawn and used, as opposed to banks where the interest is levied on the accumulated amount as soon as it is disbursed.
3. ) Quick Disbursal
A loan from a bank can take between days to weeks, and can be a tedious task with excessive paperwork. Banks may take 7-15 working days to approve a loan and transfer the amount. During times of emergency, banks are by far the best option. All you need to do is, download Mombo app, send the required details and wait for 10 mins for approval and easy money transfer.
By repaying on time without hassles, you will have a good credit history and you will be in a better position to get bigger loans for other things or for your small business if you start one.
Once again, Mombo Sacco offers you the best salary advance loan options on the market. Go over to our loan offers page and choose the salary advance loan that is best suited to your needs.