Loans – A Healthy Credit Score and its Benefits

A credit score is an important factor in one’s financial life. It is a three-digit number that financial organisations use to determine your likelihood of repaying a debt. Your credit score is based on your credit history, a record of all your past loans and credit transactions which assesses your ability to repay debts. Credit history includes information regarding your bankruptcies or collections, and all this information is recorded in a credit report. A credit score is usually a number between 300 to 850, and the better the score, the more likely that banks would approve for loans or a credit card. While it is possible to survive on a relatively low credit score, it makes your financial life unnecessarily difficult, and it is always better to have a healthy credit score.

What is a healthy credit score?

A credit score is calculated differently by different banks and financial institutions, but a good credit score, as well as the factors deciding how high your score is, are usually the same in most methods of calculation. A credit score ranging between 650 and 750 is considered good, while one between 750 and 850 is considered exceptionally good by most financial institutions. Such a healthy credit score is achieved by timely loan and credit card repayment and also regular bill payments.

Benefits of a healthy credit score

A healthy credit score has a lot of benefits in several aspects of one’s financial life, much beyond getting a credit card approved. Here are some of the major benefits of having a good credit score.

Higher chances of credit card and loan approval

A picture containing text Description automatically generated

A bad credit score indicates a poor repayment record, and not many banks would take the risk of giving you credit since your record indicates that you don’t repay loans on time. A good credit score, on the other hand, indicates that you repay loans and pay your bills on time, which makes you credible in the eyes of financial institutions. It shows that you’re diligent and responsible about paying your bills and there is lower risk in taking you on as a borrower. Hence, banks and other financial institutions are more likely to approve your credit card or loan applications if you have a good credit score.

Faster loan approvals

A long wait to get your loan or credit card approved is always a hassle. Your credit score determines the speed of approval of your credit applications. Loan applications of people with a low credit score undergo more thorough checks and hence take longer to approve (if they get approved at all). In contrast, several lenders offer pre-approved loans to people who have an excellent credit score coupled with a long credit history. This means that if you have a healthy credit score, your loan is likely to get approved fast, sometimes even immediately.

Lower interest rates on credit

Whether on a credit card or a loan, high-interest rates are never good for your finances. In a recent development, several financial institutions have started offering tiered interest rates based on your credit scores, meaning that the interest you pay on your credit cards and loans is directly related to your credit score. A healthy credit score usually ensures lower interest rates on loans. Further, a good credit score will help you qualify for better credit card deals with lower interest rates, rewards and cashback.

Easier approval for house rentals

Just like a bank or lender, a landlord may look at your credit score before renting you their apartment. A good credit score not only means that you repay your loans on time, but it also shows people that you’re regularly paying your bills, making you financially trustworthy. Getting your dream apartment would be much easier if your landlord can see through your credit score that you’re likely to pay your rent on time every month. If you get an apartment on a bad credit score, the landlord would probably charge you a higher security deposit to ensure that you pay the rent on time.

Lower insurance premiums

According to insurance companies, people with a bad credit score tend to file more claims than those with higher credit scores. Most insurance companies consider risk very carefully before offering insurance. While your credit score cannot determine whether you get insurance or not, companies tend to charge higher monthly premiums to people with low credit scores. However, some states in the USA like Massachusetts, California and Hawaii ban insurance companies from setting prices based on credit scores.

A good credit score has several benefits, including, but not limited to, a better likelihood of loan approvals. The benefits also include better credit card deals, better chances of landing your dream house for rent and even lower premium on insurance policies!

Employee Benefits in Today’s Digital Age

Employees today increasingly look beyond money and job satisfaction – they look for additional benefits, too. A generous employee benefits package is an essential component in attracting and retaining the industry’s top talent. Glassdoor’s Employment Confidence Survey in 2015 found that about 60% of people consider benefits and perks a significant part of deciding whether to accept the job, while 80% of the employees would prefer to get additional benefits from their employers rather than a pay raise. While multi-billion-dollar organisations like Google and Twitter offer the most attractive perks including yoga classes, massages, etc., not all can afford them. For such companies, the good news is that not all benefits are expensive. The benefits that make employees happiest come at relatively low cost to the employers, like flexible hours, more paid vacation time, and work-from-home options.

The digital revolution has made everything evolve vastly from the situation just a decade or two ago. So it comes as no surprise that employee expectations and benefits have also evolved and are markedly different in today’s digital age than they were before. For instance, working-from-home was practically not an option, and neither were flexible work hours, with no secure means of communication to manage either. Other aspects are different now too – like the fact that medical expenses and college tuition costs are hitting the roof, making related benefits attractive to employees. With the increasing significance benefits have, even over a higher salary, it is becoming essential for employers to understand employees and their issues and give them attractive benefits and retain a skilled workforce.

History of Benefits

Employee benefits first came into the picture in 1636, when the first pension law was enacted in Plymouth (part of what is now Massachusetts).

  • This was followed by the first profit-sharing plan proposed in the US Marine Hospital Service more than a century later, in 1797.
  • The 1800s saw notable developments like the first private pension plan, the first group insurance policy and the first wage payment law.
  • The 1900s saw many new benefits plans, where employers became more proactive in giving their employees incentive to work with them. This, combined with separate government initiatives including health and retirement programs and other incentives, resulted in a new era of employee benefits.
  • Notable developments in the 1900s include the introduction of workers’ compensation and the minimum wage law. Other benefits in the earlier days include employee stock purchase plans, paid leaves, severance pay and services like canteen, transport, accommodation, healthcare, etc.  

While some of these benefits continue in today’s digital age, some are now obsolete and do not offer the same value. Employee benefits are essentially meant to attract and retain employees, and employers will need to keep up with the times and offer employees the benefits they desire if they wish to retain talent.

Importance of Attractive Benefits

A screenshot of a cell phone Description automatically generated

source: Patriot Software

Multiple studies and surveys have indicated that a majority of salaried employees prefer better benefits and perks over a pay raise:

  • A 2016 survey by Aflac found that having a benefits package is extremely or very important to their employer loyalty for 60% of employees. According to the same survey, 36% of employees say improving their benefits package is one thing their employers can do to keep them in their jobs.
  • Another survey by MetLife in 2017 indicated that 72% of employees said that the ability to customize benefits increases their loyalty – meaning that employees prefer to choose benefits to match their lifestyles.

Of course, this leads to lower attrition, amongst many other business advantages – such as better productivity, and better attendance. Finances, family commitments, and health issues are the major reasons for absenteeism, and these can be taken care of via benefits like flexible work hours and health benefit plans.

Benefits Desirable in Today’s Age

While some benefits of earlier times are no longer popular, some are given a great deal of importance. These benefits include:

Medical Insurance

With medical costs skyrocketing globally, health insurance and medical benefits are becoming increasingly important to many. These are one of the most expensive benefits to provide, but they remain the most desired for employees.

Retirement Plans

The youth of today are increasingly aware of their future and wish to start their retirement plan as soon as possible, understanding that it is important to ensure survival when they can’t earn anymore. So attractive retirement plans are quite important as benefits go.

Paid Leaves

Increased vacation time and more paid leaves per year are certainly desirable to employees, with breaks a necessity rather than a benefit due to increased stress at the workplace. Of course, a lot of executives end up leaving vacation days unused. In such cases, employees can either carry forward their leave days into the next year or opt to cash-in on their leaves, depending on the company policy.

The above benefits have been around for a while, and are still important to employees. However, with the changing times, many new benefits have been introduced, the most desirable among them including:

Flexible Work Arrangements

Flexible work arrangements have only become feasible due to recent tech advances. With meetings possible through video conferences and clients just a call away, it’s become possible to only turn up for work when needed and spend unproductive work time doing something productive at home. Similarly, working from home is also possible in some professions, and these are the benefits many employees look for and even prefer over a higher salary package.

Fitness-related Benefits

With increasing importance accorded to stress relief and relaxation, workplaces have become more interesting and colourful, with places for fun and games, and even full-fledged gyms. As part of stress relieving initiates at workplaces, many employees desire yoga or fitness sessions, or well-equipped gyms at the office.

Student Loan Assistance

Education costs are now hitting the roof, and most students try to meet these costs by taking loans. While a high salary would definitely help to pay off these loans, freshers prefer loan or tuition assistance over a higher paying job. Providing such benefits might be costly, but companies can use it to their advantage and avail tax benefits on tuition fee provided to employees. Services like School FeEs from Fibe are tuned to meet exactly these needs.

Financial Wellness

Investment is an significant factor in building one’s savings, and the youth of today is realising this fact faster than previous generations. However, a large number of people remain financially unaware and have no clear ideas as to where to invest or what kind of investment would bring them the best returns. In this situation, a benefits package which includes financial advice, investment assistance and help in financial management is highly desirable.

In today’s fast-paced digital age, employers making work easy for them is accorded a higher priority rather than a higher salary, although good pay certainly remains desirable. Work-life-balance, as well as the reduction of some of its related stress through financial benefits plans,  are coveted perks in the markets. Further, employees also like to be cared for, and attractive benefits packages show that the employers care. Employee benefits are, therefore, very important to attract and retain a skilled workforce.

LOOKING BEYOND MONETARY COMPENSATION: WHAT EMPLOYEES OF TODAY NEED

We have all, at some point in our lives, come across theories or studies raising questions about what motivates employees and have, more often than not, found the answers to be money and job security. None of these studies, however, can be expected to be 100% accurate because every individual is different and so is what motivates them.

It is also not easy for an organization to understand such individual motivations, especially with a new generation of millennials who desire more than just monetary compensation or the security of a job – attributes which were, without a doubt, highly valued by their predecessors. That does not mean that they consider these attributes unimportant. While they definitely feature high on the pyramid, there’s plenty more that’s joining the queue.

The first of the many changes in employee attitudes is that individuals today desire happiness from their jobs rather than looking at it simply as a source of earning. With the increasing tech advancements, machines are being employed to complete the routine activities and humans are left to follow their passions. Employees are becoming increasingly particular about the job roles they adopt and want to ensure that it gives them a sense of contribution and satisfaction. They are willing to invest in developing their skills and to learn new job aspects to help them remain relevant to their job roles.

The second change, which is in turn an influence on job satisfaction, is the need to be respected. Employees of the current generation no longer want to be treated as novices or be beaten down simply because the person on the opposite side is several levels higher in the organizational hierarchy. This does not mean that they are arrogant or overconfident – they seem to be simply looking for fair treatment. Millennials understand the importance of experience and are willing to learn from those who have been at the job longer than them provided they are recognized for their superior work and individual talents in concrete ways.

The third change that has come about is the desire for work-life balance. Individuals today are no longer getting married at an early age which leaves them with a source of income minus the responsibilities of family life. This combined with the increasing number of entertainment options is improving what is commonly known as the ‘social life’ and ‘experience building’ of an individual. Read more about millenial spending trends here and here.

Today’s employees want to spend just as much time watching an episode of Game of Thrones or going on a solo backpacking trip across Europe (did I mention you could avail instant cash loans for travel purposes from Early Salary?), as they do looking at a spreadsheet in office. Add to that the daily traffic congestion that lines every metropolis during commutes, and you have a whole huge bunch of people preferring to work from home whenever possible.

https://pixabay.com/photos/hiker-backpacker-backpacking-1149877/

The fourth change is the desire to control their work methods. Employees today want to be able to decide themselves how, where and when the work gets done. This is not to say that they shy away from deadlines or compromise on the quality of the work but is more about the autonomy they seek to be able to decide whether the work takes two hours or two days and to judge themselves whether the output they are giving is the best they can do.

These changes, though not exhaustive, are some of the most significant observations among the millennial employees. They are also a common reason why many from this generation today are seeking entrepreneurial activities and unconventional careers despite the high risks involved rather than the evergreen pastures of a 9 to 5 job. For leaders wanting to retain their best talent, starting to streamline compensation, benefits and work style to accommodate these changes would be a wise move and go a long way in attracting and retaining the current crop of enthusiastic and bright millennials.

Credit Cards VS. Instant Cash Loans

You can get instant cash on a credit card or apply for a personal loan to help you manage your planned or unplanned financial requirements. Before choosing any option, consider the interest levied in both cases. With instant cash loan and online personal loan becoming increasingly popular, you can get funds from the convenience of your home.

That said, most of you may wonder which option is better: Credit cards or cash loans. While both have their benefits, knowing which option is better suited to your situation is essential. Read on to learn how cash loans and credit cards differ and how to choose the best option for you.

Features of Credit Cards vs Cash Loans

Here is a quick rundown of a few essential attributes of both forms of credit.

1. Limit of borrowing and rate of interest

The quantum of money you require often determines whether you should go for instant cash on a credit card or opt for a personal loan. If the quantum isn’t too much, it may be better to go for a credit card. Regular borrowing and paying off credit will assist in improving your credit score as well – a prerequisite for most bank loans. 

However, if you need a large amount of money, an instant cash loan is the obvious choice. They offer low-interest rates and are now more readily available without the hassle of rigorous paperwork and the strenuous wait period. 

Fibe, for instance, allows you to apply for a loan through its app and you can get approval within minutes once you meet the eligibility terms.

2. Time taken to repay the debt

Credit cards have a relatively high interest rate and while they are simple and easy for small expenditures, you must pay off the debt in time. A recurring rate of interest could almost double your debt if not paid off appropriately. 

Gauge the time you would require to pay off the debt – if the time frame is more than 3 months, a cash loan will save you money. Most instant loans allow you to pay back the money within a 6-to-12-month period by paying a nominal interest charge. 

On most instant loan apps, the repayment policy is flexible. It allows you to decide the payment schedule depending on your convenience.

3. Spending habits

Credit cards have lucrative entertainment deals associated with them. However, if you tend to overspend and have trouble resisting temptations, these deals could be your downfall. 

A little control could go a long way when it comes to using credit cards. Nevertheless, dismissing their benefits, such as accumulation of miles during flight travel, lounge access and cashback offers on most purchases, may be unfair. 

4. Credit score

This is an important criterion most lenders consider when sanctioning your loan or credit card approval. Any kind of traditional loan requires you to have a credit score and a higher credit score can reduce the interest levied on your sanctioned loan. Most instant loan apps let you apply for a loan even with a low credit score, especially for new borrowers.

These apps evaluate customers based on a combination of their credit score and social worth score. Your social worth score depends on your social media presence and whether you know/interact with people who have previously defaulted on their loans. 

While it is vital to maintain an optimal credit score, you can always boost your score by borrowing and subsequently paying off credit frequently. 

How to choose between Instant Cash Loans and Credit Card Loans?

Since an instant cash loan and a credit card offer credit, choosing a suitable option can be daunting. Ultimately, it depends on your personal preference and financial capabilities. 

Here are some important points that can help you choose a suitable financing option. 

1. Consider the urgency of your fund requirement

Getting the funds at the right time is essential to address urgent financial obligations. If you need a lump sum immediately, getting an instant personal loan is a smart borrowing decision. Do note that some credit cards also have a loan feature, which is just as quick. 

2. Evaluate the cost of borrowing

Another point to evaluate is the interest rate associated with the borrowing. Credit cards typically have higher interest rates than a loan. So, getting an instant personal loan is ideal if you want credit at a lower cost. 

3. Assess your repayment ability

Borrowing funds comes with the responsibility of repayment. Delayed or missed payments can lead to penalties and other consequences. So, planning the repayment before borrowing is essential. 

A credit card has a shorter repayment period. Usually, you need to repay the credit card bill at the end of the month. On the other hand, you can repay a personal loan in affordable EMIs. This is because you get the benefit of choosing the loan repayment period as per your affordability.

4. Check the associated fees and charges

Like every type of financial product and service, personal loans and credit cards also come with certain fees and charges. In case you get a credit card, you need to pay annual fees, cash advance fees, late payment fees and other fees. 

A personal loan also comes with charges like processing fees, late payment fees, foreclosure charges and other associated charges. To choose the best option, compare these fees and opt for the cheaper option. 

While choosing an option depends on how you handle your debts, credit cards have always been associated with higher interest payments. Hence, independent of age and occupation, most borrowers tend to prefer cash loans. 

Instant Loan Apps in India, such as Fibe, have made the application process easier and you can get the required funds if you have a steady monthly income. Over the past few months, the hassle-free and speedy procedure of applying for personal loans has secured a lot of happy and trusting users for Fibe. 

Download the Instant Loan App or visit our website and register to get a Personal Loan effortlessly.

FAQs on Credit Cards vs Instant Cash Loans

Is it better to take a loan or use a credit card?

Choosing between a personal loan or a credit card depends upon your financial needs and preferences. Generally, a personal loan from a lender like Fibe is better since it has lower costs, a longer tenure and is easy to avail. 

Why is a personal loan better than a credit card?

A personal loan is a preferred financing option since it allows you to get funds quickly and has lower interest rates. Also, you can choose a repayment duration according to your affordability. This way, you can comfortably repay your loan with pocket-friendly EMIs.

What is a Salary Advance and how it is different from a Personal Loan?

Delay in getting your salary, sudden spike in your expenses due to festivities or medical emergencies can all require you to borrow funds to bridge gaps. Salary advances 

and personal loans are both ways that you can access credit when you need it.

They both offer funds without collateral to salaried professionals. Let’s take a closer look at both.

What is a loan and an advance?

A personal loan and a salary advance are both credit options that you can get. Are you wondering what is salary advance? This type of loan is a short-term loan that salaried professionals can opt for. You can use the funds for any purpose. 

On the other hand, personal loans can be short-term and long-term. As a salaried employee, you can repay them over a period ranging from 1–5 years.

Difference between a loan and an advance

A salary advance is ideal when you are cash-strapped and want a quick loan to fund sudden expenses until your salary is credited. In contrast, a personal loan is an unsecured multi-purpose credit offered for any financial need by banking and non-banking financial institutions. 

Usually, you get a higher personal loan amount as compared to a salary advance, but this depends on the lender. In some cases, your employer may offer you a salary advance. The amount you get is based on the next salary. In other cases, you can get a salary advance loan from financial institutions. 

Advantages of a salary advance 

1. Flexible repayment

A salary advance from Fibe gives you the extra money you may need to sail through tough times. A salary advance also offers more flexibility than a personal loan. The repayment tenure goes from 90 to 730 days. You can choose the ideal duration based on your finances. 

Since you pay back the salary advance loan in easy EMIs over the tenure you select, repayment is hassle-free. Fibe also allows you to repay the entire amount in one go without any foreclosure charges. 

2. Fast disbursement

The most significant advantage of a salary advance is the ease and speed with which the loan amount is directly transferred to your bank account. To enjoy this convenience, all you need to do is download the Fibe app, share the requisite details, and await approval in 10 minutes. 

You can do it all online with minimal paperwork. On the other hand, personal loans usually require you to share more documents and meet stricter qualifying criteria. Banks may take more time to approve a loan and transfer the amount. Thus, a salary advance is a cushion during a financial crisis when you urgently require money.

3. No need for a credit score

Most personal loans require you to have a good credit score. However, you cannot build your credit score overnight. So, if you have recently begun your professional career, you may not be able to borrow the required amount.

However, a salary advance from Fibe does not require you to have a credit score. This is the main difference between a loan and an advance. All you need to do to access funds up to ₹5 lacs is to download the Fibe app. Meet the eligibility criteria of the salary advance loan and apply in minutes online. 

Now that you know what is salary advance and how it differs from a personal loan, you can make the right decision. While both can help you get access to funds, salary advance loans can help you meet short-term gaps with ease and speed. For instance, you may have moved to the metro for better career opportunities. 

Whether it’s a new apartment or routine living expenses and transportation costs, residing in a metro city can be financially challenging. You may not be able to tide over a short-term money crunch despite conscious budgeting and savings. This is where a salary advance from Fibe can help. You can use this salary advance for assistance during a medical need, to pay your bills, or continue investing and pay it off with your next paycheck or in EMIs.

With no hidden charges and competitive interest rates that is only levied for the number of days you use the money, Fibe’s Salary Advance can help you meet your requirements affordably.

FAQs on differences between a salary advance and a loan

What is the difference between loans and advances for employees?

A salary advance from Fibe helps you finance a short-term cash crunch until you receive your salary whereas a loan is usually borrowed for a longer time and may be of a higher amount.

Why is a salary advance important?

Getting a salary advance can help you tackle unexpected financial emergencies or bridge a shortfall until your salary is credited. You can avail of this facility if your organisation provides it or via financial institutions like Fibe. Since it is not dependent on your credit score, you can get it easily and repay it within a shorter duration.

Is salary advance taxable?

No, getting a salary advance from Fibe is not taxable since it is not considered a part of your income.

What are the various types of loans and advances? 

Some types of loans include personal loans, home loans, car loans, business loans and loans against property. Advances include salary advance, overdraft facilities or bills of exchange that can be discounted.

How are loans and advances recorded in the organisation’s balance sheet?

Both these credit facilities appear under liabilities in a company’s balance sheets. This is because an organisation needs to repay them to become debt free.

What are loans and advances?

Loans and advances are credit facilities that allow you to get funds and require you to repay them.

The Tax Advantages Behind Investments – Simplified

With the new financial year, came some really good news. With the new tax slabs, there is an opportunity for you to save your taxable income.

Getting a major chunk of taxable income out of the way by making the most of Section 80C is a great starting point for most of us, but even while dabbling in 80C deductions, play smartly and make sure you give precedence to tax-saver instruments with EEE (exempt-exempt-exempt) status that not only help you save tax, but also earn tax-free income like the evergreen PPF, ELSS with growth options over dividend options, Unit Linked Insurance Plans (ULIPs) so that your returns don’t add to your tax burden.


Beyond this:

  • Consider capitalising on up to INR 25,000 worth of tax deductions through medical insurance and purchasing National Saving Certificates (NSCs).
  • Further, you could claim deductions on contributions of up to INR 50,000 under Section 80 CCD (1B) made exclusively towards National Pension Scheme (NPS), and
  • If you use both 80C and 80CCD, a total of INR 2,00,000 could be saved from Income Tax.

But what if you’re just starting out in your career with a fresher’s salary but recognise the tax saving benefits you could reap if only you could invest in these specific instruments? Here’s why leaving your money in the bank isn’t such a good idea.

With those heavy rents and bills to pay, saving up enough to invest major chunks could truly be a challenge and we’ve all been through that phase. This is where external aid could come to your rescue. The internet has been burgeoning as a place to take care of all our modern needs and why should this be left behind either.

Fibe (available on Android and iOS) is a Pune-based, fintech portal that’s changing life for the average Indian by making possible convenient, affordable and fast lending from as low as INR 1,000 with interest rates starting as low as just INR 9 per day.  The best part is that these are no hassles and loans can be taken for any and every purpose including investments. Even newly salaried employees can avail loans as salary slips aren’t demanded as part of the particulars. To know more benefits of preferring Fibe, check out this post.

But why would I borrow when my returns would be eaten up by interest?

Tax benefits accrued on account of investments can go a long way in reducing your tax liability, leaving you with much more disposable income to begin with to take care of your interest requirements. The multiplier effect of more disposable income that can be reinvested to generate more money would eliminate the need for further loans to keep investing  soon enough and leave you with enough to plough back those benefits to keep investing without loans.

Still have concerns?

The fact that it’s so easy to obtain loans does make one wonder what the catch is and whether borrowing from such sources would be a good idea or not but Fibe is worthy of your attention. Running on a framework of a clear set of legal rules and regulations for borrowers and marking well against every existing industry standard including the Fair Practice Code for Non-Banking Financial Companies (NBFCs), Fibe is a trustworthy platform for young salaried persons seeking instant loans to seamlessly meet the gap in their cash requirements

So how does EarlySalary work?

Fibe’s customer assessment is conducted on the basis of your particulars and what it calls your ‘Social Worth Score’. It does not require a guarantor or collateral. The process merely involves completing particulars and uploading documents online and does not require any queues or hassles to be dealt with. While the first loan disbursement may take up to a day, future loans are disbursed within minutes.

Based on your score, separate limits are assigned to you for separate specific loan requirements and you can borrow according to your limit and set your repayment particulars. On becoming due, the amount is deducted directly from your salary account or you can also choose to prepay through the mobile app. Unlike bank loans, there are no fines and prepayment charges on early repayment.

Break out of the rut of planning your investments in tax saving instruments at the end of the financial year with Fibe’s instant cash advances, and plan ahead so you can chalk out a proactive, prudent investment plan that makes the most of your own and borrowed resources.

Fund yourself to travel in your 20’s

As a growing cohort of Indian population enters the working age, a substantial part of their disposable income is being spent on travel. Their reasons may vary, but what’s common is the need for self-preservation and a non-negotiable desire to explore the unexplored. This is why millennial’s are now integrating the passion for travel into their lives.

As the corporate world continues to witness an influx of millennials, many of them feel the need to escape the humdrum of life and travel to new destinations. The most important thing before any vacation is planning, and more importantly, expenditure approximation. In an era of easy and fast loans from apps such as Fibe, a slew of young travellers are now taking their advantage to enjoy international travels and frequent weekend getaways. In fact, as per a recent survey, salaried millennials in the age group 25 to 35 years account for nearly 12-20% of the total travel loan segment in India. As we’ve discussed in previous posts, this is because:

  • New age services offer quick loans online with minimum documentation.
  • They are cheaper than conventional options such as credit cards and,
  • Have a faster disbursement turnaround time.

However, travel is not limited to those adventurous trips. It can also be due to an unavoidable family emergency or related to health care issues of your own or your near and dear ones. Whatever your reason, money is an indispensable part of travel and the smartest way to meet a short-term fund deficit is through cash or personal loans.

In today’s times where youngsters have a zillion dreams, it may be easier to break free from time constraints, but a budget constraint is a bigger challenge. Let’s face it – being a salaried individual, it is not easy to save for travel when there are so many essential expenses to take care of. Even if you opt for cheaper lodging and transport, a considerable amount is nevertheless required for shopping, food, miscellaneous stuff. And you must always maintain sufficient funds for emergencies. This is where a personal travel loan comes handy, allowing you to create beautiful memories without giving up on your plans.

An instant salary advance from EarlySalary can be availed within 24 hours. You just have to download the EarlySalary app, upload your address and identity proof along with the last three months bank statement. The loan is typically approved and transferred within 8 to 24 hours of your application. There are no hidden charges. It is a hassle-free process and especially beneficial for youngsters who are always running against the clock. This loan may be used for both domestic and international travels. Quick loans may be used any way you want and require no disclosure.

The best part about quick loans is the flexible repayment tenure that may vary from one month to one year. The repayment structure depends on the lender policies, loan amount, loan tenure and applicant’s profile. Assess your needs and repayment capacity before signing the loan agreement.
If you too are a travel junkie, then do not let short-term money crunch clip off your wings. Apply for an instant cash loan from Fibe without collateral, take a break, enjoy a new destination, rejuvenate yourself and repay with easy and flexible EMIs.

Growing Popularity of App-based Cash Advances & Their Advantages

Ever been in a situation when some unexpected expense came up and you were out of financial options to cover them? If your answer is yes, you probably know how hard it can be to arrange money urgently. We all have savings, especially to deal with unexpected, but sometimes even our savings fall short during an urgency.

Fortunately for us, the amalgamation of the finance and tech sectors has given rise to an alternative lending industry. This provides us with much better options of borrowing some quick cash during an emergency as compared to traditional ways. One of these lending options is cash advance apps that are steadily proving to be quite resourceful when it comes to instant cash loans. These apps offer you loans much quicker without requiring you to go through rigorous paperwork.

Currently, India is witnessing the rise of its fintech industry in conjunction with the alternate lending industry as one of its key sectors. A large number of India’s population remains underserved by institutional lenders. This provides vast opportunities to new lending startups to succeed through serving financially underserved masses. Online lending platforms such as Fibe are one among many brands that provide instant personal loans and salary advance loans in India.

Another reason behind the increasing adoption of app-based cash advances is the growing penetration of smartphones in India. There is a huge gap between people with bank accounts and people with credit cards in the country. However, smartphones provide lenders with ample opportunities to reach out to potential borrowers within this gap. This also makes it easy for people to take a small loan on an urgent basis. The best example is the Fibe personal loan app – which has more than 5 million users.

Advantages of advance cash apps

At the time of need, people tend to borrow money from relatives and friends, but if this doesn’t work out, they take a loan from a bank or other money lending institutions. However, the tedious amount of paperwork involved in the borrowing process from banks is enough to render conventional lending means ineffective for urgent requirements. This makes app-based cash advances with all their advantages a most suitable option during emergencies. Some of these benefits are:

  1. Instant loan approval

App-based cash advances usually approve your loan application almost instantly. Via Fibe, you can get your loan approved within a few minutes if you qualify all requirements of its relatively liberal eligibility criteria. If you urgently need money, this is the best way to get a quick loan. All you need to do is fulfil a few requirements, and you will have the cash credited to your account, by the end of the day.

  1. Convenient process

Another advantage of instant cash advances is the convenience of the entire borrowing process. Fibe’s loan process is entirely online – which means you don’t need to visit any bank or outlet to have your loan sanctioned. In fact, you can apply for a loan right from the comfort of your home. This also helps in much quicker processing of loans compared to those of banks.

  1. Ease of access

Getting a loan through conventional means can be a daunting task and one which has visiting banks multiple times. On the contrary, with an instant cash advance app like EarlySalary, you only need to install the app on your smartphone. The app provides access to different kind of loans and credit services and also works as a unified hub for your borrowing and repayment activities. As a result, you save a lot of your valuable time.

  1. Fewer requirements

App-based cash advances have fewer eligibility requirements compared to traditional means of borrowing. During an online loan process, a borrower usually needs to pass eligibility criteria and fulfil some basic requirements to become eligible for loans. Conventional loans typically require you put some asset as collateral. However, EarlySalary provides you access to loans without needing you to put something for security. There are other requirements like credit score and loan purpose that are mandatory to fulfil during a traditional loan but are not a necessity of instant online loans.

  1. Easy Repayments

EarlySalary grants you the ability to repay your loan in a way that suits you better. You can either choose pay as you use mode or go for EMI option. You can also prepay your debt using the EarlySalary mobile app, or you can set your salary account for automated payments. Another benefit is, unlike banks you are not charged any extra money on your EMIs.

  1. Lower fees and rates

Instant cash advances usually charge lower interest rates as opposed to large lending institutions. Borrowers are most likely to find online loans reasonable cheaper than those of banks. If you’re borrowing a small amount for an emergency, Instant cash advances are the most ideal and cost-efficient way to borrow money.

Raising money on an urgent basis is a difficult task. Nonetheless, app-based cash advance platforms have allowed us to borrow money almost instantly. Although online lending platforms took some time to gain people’s attention, they are now becoming popular very rapidly. Due to India’s fintech sector growing faster than ever, alternative lending industry and instant cash advance platforms are expected to witness a much higher growth rate.

How To Travel On Budget This Summer 2026

Fond of scrolling through Instagram, looking wistfully at beautiful photos of people travelling the world? You’re not alone. Thankfully, there are some easy ways to partake in budget travelling and fulfil your travel dreams without burning through your savings. 

However, you require the will and determination to stick to your budget for travel this summer, especially with the steep rise in prices. You need to be careful and diligent in your planning, and while it’s definitely not easy, it’s entirely possible.

With these smart tips, learn how to travel on a budget like a pro.

#1 – Do Your Research

Research is one of the most critical aspects of travelling on a budget. While spontaneous plans are certainly fun, they can be quite expensive, primarily due to their last-minute nature. Flights and hotels booked at the last minute are never cheap, and planning for any trip at least a few months in advance is a must. 

Give yourself time to research the following:

  • The best time to visit the place
  • The most affordable places to stay in
  • The cheapest flight to take

Make sure to read reviews and talk to people before starting on your journey, because learning from other people’s experiences is one of the best ways to save money.

#2 – Join a Travel Rewards Program

If you are looking for ways to enjoy travelling on budget, you should always try to join a travel rewards program. Most airlines have frequent flyer programs, which are usually free to join. The more you travel, the more you earn through these programs, and if you have amassed enough points/miles, you can even travel for free once in a while! 

Since air tickets are usually the most expensive part of travel, if you get these for free, you end up saving a lot. Of course, it’s not just airlines who have such programs nowadays; hotels have them too. These make it that much easier to earn points and eventually reduce your travel expenditure.

#3 – Find Affordable Stay

It’s a great experience to stay in a five-star hotel like the Taj and be treated like royalty throughout your stay. Unfortunately, doing that on every trip isn’t always feasible or smart. Resist the urge to choose luxury accommodation, and instead try and go for: 

  • Dormitories and shared rooms as they cost much less than single rooms in luxurious hotels 
  • Homestays because what better way to get a feel of local culture than staying with the locals? 
  • You can also bunk with friends or relatives for a few days

#4 – Travel Slow

One thing you must remember is that slow travel is cheap travel. This is evident from the fact that flight tickets are often more expensive than train tickets, and travelling by express train tends to cost more than a slower train. 

Moreover, slowing down is often more enjoyable because you get to truly savour the place and learn about its culture. Travelling by road or rail rather than air gives you the time to appreciate the beauty of the journey, making it doubly beneficial (in terms of cost as well as enjoyment).

#5 – Eat and Shop Where the Locals Do

Popular tourist destinations and spots often sell souvenirs and have great restaurants in their locality. But the best way to save money is to avoid these popular shopping places and restaurants completely as things tend to cost more in tourist hotspots. 

Here are some tips:

  • Try out the street food (it’s always the cheapest)
  • Eat at restaurants the locals frequent

You’re also much more likely to find souvenirs and unique items at affordable costs if you shop at local markets instead of tourist shops.

#6 – Keep an Eye Out for Discounts

If you’ve started planning your trip well in advance, don’t make all the bookings too soon. Instead, subscribe to loyalty programs and look out for any promotional offers, which are not too hard to come by any more. 

Leveraging these can help you lower the overall costs and travel on a budget without any major compromises. The promotional emails most companies send are annoying, but some offers are very useful. So, bear with them and cut down on your travel costs.

#7 – Walk or Rent a Bicycle

Travelling inside the city you visit by taxi can be expensive and adds up over time. Using public transport is a good way to keep your costs low. If you wish to save more, however, you can always rent a bicycle. Most major cities, especially in Europe, offer this as an option, and the rent is much cheaper than other modes of transport. 

If cycling is not something you enjoy, you can always walk wherever you wish to go. It gives you a new appreciation for the beauties a place has to offer, and to top it off, it’s cheap, too! Walking is a great option, especially if you’re not alone. If you are alone, it’s better to hire a cycle or choose another public transport option.

#8 – Buy a Local SIM Card

This is vital if you are travelling internationally. Since the roaming costs are extremely high communicating with your loved ones or even your local guide can be quite expensive. The best way to avoid this and keep your costs low is to get a local number, which can also make communication easier and better. 

#9 – Travel Off-season

There is always a ‘best time to visit’ any place, and at such a time, it usually gets swarmed by tourists. Travel companies tend to take advantage of the great demand during such times and the prices skyrocket. Similarly, school vacations are the prime time for families to head out for a holiday, making it the peak season for travel. 

It is always wise to avoid travelling during such times. The best time to travel on a budget is usually the duration just before or after the ‘best time to visit’. This way, you won’t completely miss the wonders during the peak time, but you’ll successfully avoid the crowds and expensive tickets. 

#10 – Choose Your Summer Vacation Destination Wisely

To save more on your trip for a summer vacation, select the destination after careful consideration. Look for a destination where your funds go the furthest. 

Here’s how to do it:

  • Make a list of some places that you’ve always wanted to visit and check for local hidden gems. 
  • Plan a visit to small cities and towns, which can be comparatively cheap
  • Club two or more destinations that are nearby to tick them off your bucket list affordably

#11 – Try Booking with a Travel Agent

When you plan your travel this summer, consider booking through an agent. As they’re in the travel industry, they can help you bag discounts and offers. Getting such discounts can be difficult on your own. 

To get a travel plan well in your budget, communicate your budget limit to the agent and ask for a tailored plan. Mention your preferences too, and ask for a few options. Lastly, ask for extra input regarding your itinerary as this will help you explore the place to the fullest. 

#12 – Take Advantage of Credit Card Benefits

You credit card can be your best tool when you’re travelling on budget when used right. There are several travel benefits offered by most issuers, and all are curated for these needs. With such a travel credit card, you can enjoy:

  • Discounts on hotel and flight bookings
  • Offers and discounts on dining at partner restaurants
  • Benefits by redeeming your accumulated reward points
  • Cashback on various transactions

You can also consider redeeming your points or leverage any other travel offers that can help you get a discount. Remember, even if it’s a small amount, it can make a big difference in the long run.

What Should You Include in Your Vacation Budget?

When you plan your travel this summer, add these pointers to your budget:

  • Expenses for travel and hotel or resort bookings
  • Transportation expenses, including flight bookings, taxis, rental cars, petrol expenses, etc.
  • Expenses towards food and drinks
  • Costs of activities and tickets for attractions and places
  • Expenses for getting souvenirs for yourself and your loved ones
  • An emergency fund for unexpected medical expenses, flight bookings, etc.

These tips will serve as your handy guide to travelling on a budget, and they’ll help you save a lot of money. However, if you’re still low on cash for any reason, you don’t need to cancel or postpone your plans. You can always take an Instant Personal Loan from Fibe at pocket-friendly interest rates. Through our online Personal Loan App, you can get the money in just 2 minutes for a stress-free travel experience.

FAQs on Budget Travelling

What is a good budget for travelling?

A good budget is subjective and depends on various factors like:

  • Your income and flexibility
  • Your destination
  • Your travel itinerary
  • Your stay, travel and food preferences

Once you’ve factored these in, you can come up with a rough estimate. 

How do you travel on a limited budget?

Here are some tips for budget travelling:

  • Research thoroughly and then plan your trip
  • Plan your travel before or after the peak season and not during
  • Choose pocket-friendly stay and travel options
  • Eat and shop at local markets
  • Look for discounts and offers
  • Cook or carry your food
  • Try cycling, walking, or public to save on travel expenses
  • Get a local SIM card
  • Join a travel rewards program
  • Plan your summer vacation with a travel agent

Why  should you travel on a budget?

Here’s why budget travelling is beneficial:

  • You learn to adjust in different situations
  • You can travel for a longer time
  • It helps you learn the value of money
  • You get an authentic travel experience
  • You save more, which can help you meet other goals

Guide to Planning Your First International Trip in 2026

As summers approach, it is time to buckle up and plan for your international trip. From ancient ruins to exotic beaches, locations abroad have a lot to offer. But before you head for your dream vacation, planning for the journey is crucial to keep it organised. To know more about the best destinations to visit and how to plan for your foreign tour, read on.

Best Countries to Visit in Summer 2024

While spring is in the air in the northern hemisphere in April, the southern hemisphere continues to experience late autumn. Hence, this season offers a great opportunity for those planning for an international trip:

France

France, Paris in particular, is a delight to visit in the spring season. If you visit the country this season, you can enjoy the centuries-old Foire du Trône funfair or participate in the Paris Marathon. 

Greece

You can consider visiting Greece this month, as the country is experiencing the last month of the low tourism season. However, there is still a high potential for local activities. Whether you prefer hiking in the mountains or visiting seaside cities, a visit to Greece in April is a beautiful experience.

Belize

To bask on the white sand beaches and coral gardens off the Caribbean Sea, you can visit Belize. It boasts the second-longest barrier reef after Australia.  

To plan a trip, you can consult an international tour & travel agency. However, you can also follow certain best practices to plan a foreign tour.

Simple Tips You Can Follow When Planning Your International Trip

Follow these easy-to-follow hacks and visit your dream destination without much hassle.

Plan the Trip Carefully

While waking up one day and making a spontaneous travel plan is fun, it is nearly impossible for an international trip. Make sure to go through these pointers:

  • The most important aspects to consider here are the visa and permissions required to visit the place. 
  • Some nations have stringent visa rules and planning well in advance is the only way to ensure you can visit the country.
  • Make a rough itinerary and decide how long you’d have to travel to do justice to the place you’re visiting.
  • Research the place thoroughly and take note of the best time to visit it and the places to see before you start booking your tickets.

Choose Your Destination Based on Your Interests

When deciding the country where you want to go for a vacation, consider what fascinates and intrigues you. For instance, if you are a history buff, Europe is an ideal holiday destination for its abundance of heritage sites. 

On the other hand, if you want to witness vibrant cultures and bustling markets, you can plan for a trip to Southeast Asian or Latin American countries. 

Visit Inexpensive Countries

If you’re low on cash, the best way to budget travel is to go to a place where you’re likely to spend less. Research the cost of living in different countries and the value of their currency against yours.

  • For example, 1 Indian Rupee equals nearly 205 Indonesian Rupiah, which should make your costs that much lower in the country.
  • On the contrary, European countries are expensive and you’ll end up spending a lot if you visit them.

So, if your goal is to see the world, you can start by visiting inexpensive countries first and progress to the more expensive ones when you have more money.

Set a Budget

This is one of the most important aspects to remember while planning an international trip with limited cash because of the following reasons: 

  • If you don’t have a set budget, you’re unlikely to control your spending.
  • However, if you set your limit according to the amount of money you have, you can always come up with ways to reduce your expenses.
  • If your costs seem like they’ll exceed your budget by a large margin, cancel some parts of your foreign tour or look for cheaper alternatives.

Find Deals on International Flights

The key to a budget-friendly international trip is to get exclusive offers on airfares. To get great deals, be flexible with your plan and consider flying on weekdays. Moreover, don’t just stick with major carriers, but also check the fares charged by some of the low-budget airlines. 

Most travel websites also allow you to set up alerts when the price of air tickets decreases for your favoured destination. 

Book Accommodation & Rentals

You will get expensive tickets if you make last-minute bookings. Hence, book your tickets around 2 months in advance. Keep an eye out for deals and discounts and subscribe to promotional mailing lists. These deals can reduce your expenditure by a large margin.

Buy Travel Insurance

Spending a little more and purchasing travel insurance can end up saving you plenty of money in case something goes wrong. Here is a brief overview of the travel insurance:

  • A typical travel insurance policy protects you against illness, accidents, theft and cancellation during your travel.
  • It covers your medical costs and reimburses you in case of theft.
  • You can buy this insurance from your international tour & travel agency.

Consider Working in Exchange for Free Food and Board

There are multiple work travel arrangements available nowadays, with the increase in people wanting to travel. Check the details of these arrangements:

  • Work abroad programs let you use your skills and offer free food and board in exchange for your time and effort.
  • You can try teaching jobs, house-sitting or helping out your hosts in some other ways.
  • You get to save money and get an in-depth experience of the local culture.

If you’re still struggling to meet your budget even after following all these tips, you can get an Instant Personal Loan at Fibe. To fund your foreign tour, you can get up to ₹5 lakhs as a loan with a simple application process and minimal paperwork. Download our Personal Loan App or log in to our website to enjoy quick funding.

FAQs on Planning an International Vacation

How do I start planning an overseas trip?

The first thing you need to do when planning an international trip is to decide the destination. After this, you can set a budget and assess the price of tickets and accommodations to proceed with the planning.

How early should you plan an international trip?

Ideally, you must plan your international travel and tour at least 2 months before the date of departure.

How much does an international trip cost from India?

The cost of your foreign travel will depend on the place you decide to visit. For instance, the cost of your international travel and tour will be higher if you plan your trip to the USA compared to Malaysia.  

What documents do I need for international flights?

Here is the paperwork you need when travelling abroad:

  • Passport
  • Visa
  • Identification documents
  • Ticket and boarding pass
  • Travel insurance plan details 

Which country is best for your first international trip?

It may depend on various considerations, such as your interest, budget and time of travel. You can consider travelling to Europe if you are a history buff, Spain if you like beaches and South America if you want to experience distinct cultures.