Loans vs. Advances – Difference Between Loans and Advances

 

A salaried employee often seeks an advance from the salary, due to some unexpected expense. When the salary date is far, and expenses cannot be delayed, a request for an advance is very common. However, this is not the way an organization would function and can make you prone to embarrassment and a bad image. In such a case a loan is the perfect way to handle your expenses without being embarrassed or being under any compliance. However, the right thing for you should be decided by you after considering all the needs and factors. A instant personal loan may not be embarrassing but is a burden. So, before you decide, get a complete understanding.

 

What is an advance?

An advance is applicable for salaried people and underemployment. Due to some need, an employee can ask for a part of the salary in advance, that is before the salary date. As an emergency can come anytime and it cannot be delayed, an advance is a very common thing. It is a part of the salary and there are no extra charges or rates that are charged on. The only disadvantage would be the company policies and the rules. If your company is employee-centric, they may offer you this help under exceptional cases.

 

What is a loan?

A loan is a debt where a person borrows a certain amount of funds from a financial institution. It can be a bank or a private loan provider. For the money you borrow, you will be charged with a rate of interest and there will be other charges as well. It comes with a fixed tenure and you need to repay it within that period. It is a good way to have a huge chunk of money, only if you can pay it back. A loan is a better way to maintain your image but has a lot of risks.

 

Which is better?

Both of them are sources of instant funds to meet your needs. However, it completely depends upon your individual needs and factors. If you are okay to pay charges but not go against company compliance and policies, you can go for a loan. However, if you are capable enough or don’t lookout for a debt, you can negotiate with your employer for an advance.

 

Wrapping up

It is easy to go for a personal loan if you are having a good income. For a personal loan in Bangalore, visit the official website of Clix Capital and you will find amazing deals and rates as per the market standards.