HOW TO GET SALARY ADVANCE FROM YOUR BANK

Some banks allow some of their customers to obtain salary advance if their salaries are paid through the lenders.

However, banks will look at some things such as the kind of organisation the individual customer works for and how regular the salary is paid.

A customer can walk into the bank and asks for salary advance, but may need to approach his employer to know if he can get the loan request approved.

If you need a few extra naira for an unexpected emergency, there is one source you may not have considered: Your future salary, according to http://www.creditcards.com.

Depending on where you work, you may be able to get an advance on your salary. Since any loan is really borrowing on future money, this method simply cuts out an expensive middleman: the lender.

Organisations having policies on short-term loans are becoming more common.

With a salary advance, you repay it either out of your next salary or over an agreed time span.

Unlike a popular form of borrowing from your future, raiding your retirement account, this one requires your employer’s permission. And some companies restrict the circumstances under which they will allow such.

The most important thing for people to understand is these are not notional loans, they are real loans.

Like a bank or card loan, they have to be paid back on schedule. It is not like borrowing from a friend or a family member and saying: “I will pay you when I can.”

If, for whatever reason, you part ways with your employer, you will be expected to repay the balance in full when you leave.

Before you decide, ask if you need the salary advance. Can I pay it back? And what, in my financial situation, is the real reason I am considering this?

If you have a one-time unforeseen expense and don’t want to borrow or resort to a high-interest loan, that is acceptable. If it is a lifestyle issue, and you can’t make ends meet, you don’t want to open that door to your boss.

Intrigued by the idea of a salary advance? Before you go all in, find out if it is even an option where you work.

Some employers post their pay-advance guidelines on their sites. But if your employer does not, then your next step is the human resources department. Gather information without putting your boss (or yourself) on the spot before deciding if this is something you want.

Expect a little paperwork too. While some (especially smaller) businesses may make advances on a handshake, many will ask you to sign something acknowledging the loan, specifying the amount and the date you received it, and spelling out the payback schedule.

In the event that you’re dismissed and have a severance package or back pay, an employer may simply deduct the remainder of the loan balance from that final cheques.

Also vital: Stick to the repayment plan. Nothing will get you sideways with your employer faster than asking for an advance, not being able to pay it back and asking for another advance. Punch