Understanding Salary Advance and How to Manage It

From paid vacations to health insurance, organisations have left no stone unturned to ensure the convenience of their employees. However, with the state of the global economy and rate of inflation we tend to see, money seems to be slipping out of our bank accounts faster than we can earn it.

Despite meticulous planning and stringency, salaries are exceedingly difficult to sustain for an entire month. Many people have next to no savings and continue to rely on credit cards. Emergency circumstances, including medical bills, educational expenses or an unplanned trip, might not fit into your monthly budget.

Credit cards can be the best scope to sustain by the end of the month but they can often add up to hefty amounts if you are not able to pay off your bills on time. Is there something better than credit cards? Salary advance can be your boon at the end of the month. Read on to understand what it is and its benefits. 

What is a Salary Advance?

A salary advance is fairly self-explanatory – it refers to an advance taken by employees in order to carry out any unforeseen or unwarranted expenses. The salary loan given is recovered in instalments and has very low interest rates.

With the concept of a salary advance catching on, many instant loan apps and services offer it to tide over a cash crunch at the end of the month. These salary loan apps are bridging the gap between employees and their expenses. 

Fibe, for instance, is one such app that provides salary advances for working professionals within a few clicks. With a hassle-free process, a salary advance loan is an excellent alternative to credit cards. 

Why Salary Advance?

Here are some benefits and features that help professionals keep pace with life and its many demands with this credit facility: 

  • High Loan Amounts

The convenience and flexibility associated with this loan gives it an upper hand. With Fibe, you can get up to ₹5 lakhs with an easy online application process and minimal documentation.  

  • Low Interest Rates

Compared with rates of other loans and credit cards, salary advance loans have lower interest rates. Moreover, they may come with no added charges, which makes this a great option for new working professionals. 

  • Pay Back Flexibly

With Fibe, you can repay the funds over a period of 3 to 36 months as per your convenience. Many organisations also offer easy repayment facilities as your salary is used to repay the loan amount the following month.

  • Collateral-free

Salary advance loans are unsecured loans that don’t require any collateral. If you apply for this loan, you do not have to worry about pledging and risking an asset.

  • Swift Approval and Disbursal

Thanks to evolved transactional systems and tech, your salary advance can now make it to your account quickly. Since there is no middle-man involved, all you need to do is send an online application. This quick disbursement is a lifesaver when you are in need of some quick and an instant loan.

  • Low Importance of Credit Score

The process does not require an outstanding credit score. Salary advance apps like Fibe do not rely solely on your credit score in order to lend you money, making it more millennial-friendly.

  • No Restriction on End Usage

You can use your advance salary for any kind of financial requirement, such as:

  1. For impromptu medical bills
  2. For vacation or travel
  3. For relocating to a new city/ town
  4. For repairing your vehicle 
  5. For renovating your home
  6. For paying fees/ bills/ rent
  7. For buying household items (including groceries)
  8. For festive shopping or upgrading electronics

How to Go About the Process?

If your employer offers an instant salary advance, that can be an ideal scenario. Organisations can often be slow to move on this front and may require additional paperwork such as long salary advance forms, etc. But this is far from being the only option. 

Fibe offers a hassle free salary advance within minutes. Here’s how it works:

  • Onboarding: The Salary Advance program is successfully activated once your company signs up for it
  • Integration: Your company shares all relevant information on it to you via email.
  • Disbursal: You are directed to the Fibe portal for approval for salary advances.
  • Smart Repay: You can set up the Smart Repay option to conveniently manage the repayment.

Via Fibe, you can apply for a salary advance of up to ₹5 lakhs and repay the amount over the next 36 months. Thanks to salary advances, no need to worry about cash crunch at the end of the month anymore. Get started by downloading the Fibe’s Personal Loan App and get your salary in advance.

Preserving Your Credit Score: 7 Things To Watch Out For

Imagine being able to borrow money without any hassles or unruly paperwork, so that you could buy your dream car or house. However, reality is far from such a scenario. Borrowing money from the bank depends on a number of factors – the most important being your credit score. A credit score is an indicator of your reliability and financial situation. Lenders assess your risk as a borrower by putting together the information in your credit report and credit score. A high score results in banks lending you money without much doubt and interest. A low credit score, on the other hand, comes with its long list of problems including higher interest on loans, high insurance premiums, and difficulty in being able to buy or rent houses and cars. We’ve previously discussed 5 ways to improve your credit score. This time, here are seven ways to preserve your credit score and prevent it from dropping –

#1 Avoid using more than half of your credit card limit

Credit utilisation is calculated as the ratio of your outstanding balance to your credit limit. If your credit utilisation is high, it could impact your credit score. If you use too much credit, the possibility of you repaying the money you borrow is expected to decrease. A higher utilisation could ultimately result in you defaulting on your credit obligations. A low credit utilisation means that you are using only a small amount of the credit loaned to you and hence the possibility of paying back the amount is high. In order to keep a decent credit score, ask your bank to either increase the limit of your credit card, or spread out your expenses over several credit cards to avoid reaching the limit on either. You can also pay your credit card dues twice a month so that the limit refreshes each time.

#2 Avoid any late payments or defaulting your credit cards

Payment history has a very strong impact on your credit score, so people looking to maintain a proper credit score should pay credit card bills on time. Defaulting on a credit card bill payment will almost certainly lead to difficulty in taking out loans, or opening new bank accounts. On the off-chance that you are able to secure a loan, the interest rates may be very high. Most banks do send you notices when your payment deadline is about to approach. Despite this, the number of credit card defaulters remains astonishingly high.

#3 Avoid multiple credit cards

Having multiple credit cards is neither unheard of nor is it a bad idea. However, managing and keeping track of more than one credit card requires a higher amount of attention. Due dates and the reward points should be noted. A default could result in bad credit score and high interest. Know that inactive credit cards could also negatively affect your credit score, as could applying for multiple credit cards within a given span of time.

#4 Keep a sufficient gap between sanctioning two loans

While a gap between two loans seems obvious theoretically, a lot of young millennials believe that they need to buy their house and car immediately, resulting in a pool of debt. A loan should ideally be sanctioned for a short period of time. A longer tenure attached to your loan means you end up paying more interest over the years. Try to maintain a minimum gap of 12 months between the end of one loan and the start of the next. This way, financial pressure decreases and ensures that you end up paying the EMIs regularly without any defaults.

#5 Sticking to the same form of credit can keep your score stagnant

Credit basically refers to the act of borrowing money. This could be in any form – credit cards, bank loans or overdrafts. Using different kinds of credit and paying them off properly shows that you are a responsible borrower, and lenders don’t hesitate to lend you credit. In fact, it also helps build your credit score. Regardless of your credit type, it is important to note that you must always pay off your credit on time.

#6 Avoid jumping from card to card. Maintaining old credit cards helps you lengthen credit history

Every time you use a new card, the card comes with a fresh slate for you to build up on credit history. Closing existing accounts shrinks your credit score and makes it difficult for lenders to assess your risk. When your credit history is long and lengthy, it helps lenders asses you more accurately. It also shows that you have been using credit cards for a fairly long period of time and are responsible with the payment, successfully being able to manage it.

#7 Check your credit report regularly in order to avoid any mistakes

It is rare for a mistake to occur on a credit report. However, if it does, it can cause your credit score to plummet. There could be errors on your report suggesting you were 30 days late in your credit card payment, bringing your credit score down, and once the errors are fixed, it can take upto months for your credit score to be rectified. A simpler way is to just avoid any mistakes on your report.

With a monthly salary not sufficing and sustaining you through the month, credit is crucial to pull through the month, whether it is a simple shopping and vacation, or buying a house or car. Your credit can be improved by regularly borrowing small amounts of credit and paying it back in time. However, building up credit does take a lot of time, effort and planning, and hence, a lot of fintech portals have come up with the concept of lending a salary advance which does require an outstanding credit score. Fibe is one such salary advance app which has done away with the importance of the credit score. Instead, it checks many other factors – such as your social worth score in order to determine the interest that will be levied on your instant salary advance.

Skip The Two-wheeler Loan, Get Your Bike With Fibe: 6 Reasons Why

The middle class in India is majorly a salaried class, with their dreams and aspirations packed in a budget. For daily commutes, the good old two-wheeler remains a necessity for many in the vastly populated towns and city roads. For daily chores or reaching office in the rush hours through our notorious traffic, two-wheelers are still the best bet. Even today, the two wheeler is often the first vehicle for a large part of the population.

But while four wheelers remain a distinct future step for the Indian working class, there is significant room for improvement and ease of access to two-wheeler purchase as well. A major strata of working class that would honestly like quicker (and cheaper loans) so they can get on their first bikes with more ease. While banks and financial institutions assist these buyers via two-wheeler loans or personal loans, the entire experience leaves a lot to be desired. These traditional loans suffer from several drawbacks – from rigid terms to restrictive conditions to the requirements for downpayments and high rates of interest.

With Fibe now here as an online instant cash platform simplifying the whole process, there’s a light at the end of the tunnel for two wheeler enthusiasts. Here are six reasons for you to do away with the dull and cumbersome two-wheeler loans and go in for Fibe personal loan that makes your buying experience all the more exciting.

#1 – Fibe offers Loan Even Without A Salary Slip

Banks and NBFCs take into consideration your credit history and financial health while approving your loans. Rejection rates are often high in bank loans, while approval is under the sole jurisdiction of loan sanctioning officer.

On the other hand, Fibe’s approach is more welcoming and liberal. It requires an address proof, an identity proof and details of your bank statement to approve your loan. It even offers loan to newly salaried employees.

#2 – Quick And Hassle Free

The conventional route of signing up for personal loans is tedious, as you may be are required to make a number of trips to the branch office of the bank and collect the necessary documents. Anyone document missing can higher the chances of rejection of your loan application.

Fibe is an online instant loan platform in sync with today’s digital age. Register online once, and you’re assured a consistently smooth experience. The attested documents and paperwork submissions are all digital – allowing for more transparent, and rapid loan approvals – often within minutes. All this can be executed while comfortably sitting in your home.

#3 – The Lowest Interest Rates

Two-wheeler loans come with fairly expensive interest rates that may go up to as high as 30%. Of course, the rates can vary based on the bike you are purchasing, and the partnering  bank or institution. Your salary and credit history also decide the rate of interest. These rates may fluctuate in the course of repayment.

Contrast that with Fibe, which, via its salary advances, offers a fixed rate of interest that remain same in the entire repayment span despite any changes in the RBI rates. The platform charges interest rates as low as 9 INR for a day loan of 10,000 INR. Fibe offers the best interest rates among the top instant salary advance platforms in India. Users are also encouraged to use its loan and EMI calculator to know their interest rates and repayment details.

#4 – No Collateral To Be Pledged

Unsecured loans are an operational and logistical hassle and marred by huge rates of interest. Often the terms are dictated by Banks and NBFCs. The banks themselves prefer to deal in secured loans since they involve lower risk. Fibe on the other hand, does not require any collateral or pledge for security. You only need to be a salaried employee with income above 20,000 INR. The platform prefers applicants with at least three months’ salary credited to their bank account but new employees are welcomed too. The terms are flexible and can be initiated to suit your requirements.

#5 – Prepayment and flexible repayment plans

If the borrower decides to pay the bank loan in advance, he is often penalised with fines and prepayment charges by the banks. The tenure and repayment terms are also dictated by the bank. But with Fibe, you have the flexibility to prepay your loan amount as and when you desire. You can also choose the tenure of repayment with Fibe.

#6 – No Downpayments

Traditional two-wheeler loans cover only 85% of the total cost of the vehicle, while the remaining amount has to be given as down payment. With Fibe, you can purchase your bike or two-wheeler in one go as Fibe never asks or limits the use of the loan.

Fibe makes your life abound when it comes to finance through its customisable instant and personal loan, and salary advances. You have the freedom to choose your payment plan or loan amount at the best offered interest rates in the market. Head to the Fibe website and purchase the bike or two-wheeler you have been eyeing for so long!

FAQs on loan for a two-wheeler

Can I get a loan for a two-wheeler?

Yes, you easily get an auto loan of up to ₹5 lacs at affordable interest rates with Fibe. With flexible repayment tenures and zero prepayment charges, you can instantly avail of a two-wheeler loan. Thanks to our minimal documentation requirements and quick disbursal process, your experience will surely be hassle-free.

What is the minimum down payment for a bike?

A traditional two-wheeler loan provides up to 85% of the total cost of a bike, and you have to pay the remaining as a down payment. With Fibe’s Personal Loan, there’s no need to stress about a down payment, as you can get the entire bike’s cost covered up to ₹5 lacs. So, there’s no need to pay from your pocket.

How to get a loan for a bike?

You must follow a few simple steps to get a Personal Loan for vehicle/bike from Fibe and own your bike in no time.

  • Step 1: Download the Fibe App or visit our official website
  • Step 2: Tap on the ‘Start Your Application’ option
  • Step 3: Enter a few basic details
  • Step 4: Complete your KYC documentation and get quick approval

And that’s all. It just takes 10 minutes to get approval and buy your favourite bike.

Financial Wellness At Workplaces: Why It’s Critical

The role of financial wellness in organisations is undeniably of utmost vitality. Complex organisational structures and modern corporate lifestyles often heighten stress levels among employees. Stress is now ranked as the top lifestyle risk factor, with more serious repercussions than obesity and physical activity. And financial concerns of individual employees are the biggest factor impacting health and wellness.  

A recent survey by PWC concludes that 61% of working adults experience financial stress, 52% of employees feel that financial stress hampers their work productivity and 28% reported distraction from work as a side effect of personal financial problems. Either the employees are highly uneducated to plan their investments and savings or the employees face dissatisfaction with their financial status and financial difficulties.

A Tower Watson report suggests that 72% Indian employers expect greater focus on Health and Productivity (H&P) in the future, and believe that an organisation’s health and productivity effectiveness is directly related to its financial success.

Financial status and financial planning, once overlooked by most organisations, is gaining momentum and being recognised as a major factor that directly impacts employees’ morale and stress level. Today a large chunk of Indian firms recognise human resource as the most dynamic yet essential element that could yield them revenues and success. A financially stable and sound employee is considered as a hallmark of productivity, engagement and sheer focus.

Improving financial wellness of the employees can be fruitful in several ways – like healthier employees, lower turnover rates while raising employee satisfaction, reduced absenteeism and improving the employer’s brand. The approach can be holistic and inclusive by guiding every employee towards action through financial wellness program.

These financial programs seek some basic objectives, such as:

  1. Educating the workforce on personal financial management.
  2. Setting long term plans regarding future financial goals.
  3. Reducing the overall stress levels for better productivity and satisfaction.

‘Globally, companies with most effective H&P programs have 34% higher revenue per employee.’ ~ Towers Watson report

The Towers Watson report further states that focus on H&P in India is growing and is the highest in the Asia Pacific region. 96% of the employers feel H&P plays a moderate to essential role in an organisation’s health strategy. Already, 48% of the Indian companies already have a health and wellbeing strategy in place, while 44% more have such plans in the pipeline. The primary goal should be on tangible improvement in employee well being by initiating and implementing a robust health strategy rather than copying the existing popular ones.

How financial wellness programmes can bring greater productivity

A number of programmes – such as biometric screening for health risk assessments, onsite health programs, cash as an incentive to encourage program participation, gifts and flex spending credits, sponsoring individual or team competitions – take care of encouraging employee participation and increasing employee interaction. Employers across India also indulge in offering some form of financial guidance and education concerning estate planning, budgeting, debt management, wealth creation, risk management and tax assistance.

Financial wellness is a well thought out and structured program, or set of programs, designed to assess employees’ current financial health and improve their financial behavior while also impacting business outcomes.

The recent financial depression across the globe and fluctuating economic conditions call for such programs as sine qua non to retain employee attention and interaction. There are several advantages of such programmes:

  1. Improved physical and mental health of the employees, with employees being less prone to financial stress.
  2. Increased employee retention and engagement due to lower absenteeism. The Towers Watson report suggests that a company having a wellness programme for its employees has 1 less leave taken per employee each year.
  3. Productivity is enhanced since employees no longer face financial hassles. They’re better able to manage their private and professional life.
  4. An overall positive effect and benefit for employers and organisations is exhibited in long term reduction in health care costs, with a healthier workforce granting greater productivity.
  5. For the senior employees, these programmes create more affordable retirement opportunities.
  6. Opening up career advancement opportunities for younger workforce.

With a clear understanding of the nature of business, work environment and public relations, organisations can shape their financial infrastructures and salary structures to frame fruitful employee financial wellness programmes, that ensures corporate commitment, employee presenteeism and loyalty for the organisation.

Month-end cash crunch? Forget the blues with EarlySalary

Millennials’ lives are not contained by their basic salaries. As a result, a cash crunch at the end of the month isn’t uncommon. Borrowing from parents could be an option, but that is usually the last resort. Borrowing from friends is an option too, but they’re likely to be in a similar economic condition. Infact, it’s not just millennials – almost every salaried person finds themself at the cusp of an economic crisis at the end of every month. The reasons can be varied. For some, the salary might be a week or two late, there may be a medical emergency in some cases. Even festival months can leave one high, but dry in the pockets.

For those finding themselves out of money at the end of the month, EarlySalary comes as the ideal respite during such tough times. EarlySalary’s cash advance offers loans of 5,000 INR to about 2 lakh instantly. The motivation behind such a model of borrowing was to provide an alternative for banks – which are often extremely selective in their lending, leaving many without realistic cash assistance. Considering banks do not give short term loans, EarlySalary is the ideal solution to tight monthly budgets. With 1 million downloads already on the Play Store, the successful of the venture is already obvious.

The new-age online platform
Earlysalary is a new age online platform, here to revolutionise the loan system in India. It uses a social credit system for evaluating the requests of it borrowers.

While signing up for the app, the user has to link his social media accounts – like Facebook, Linkedin etc – allowing the portal to get an authentic look at their profiles. It is recommended that the profiles be regularly updated as it will help generate a better social score – in turn easing the process to obtain a loan.

Additionally, if your credit score is good and repayments are on time, Earlysalary allows as many loans as you need in a year, with only a 5 day gap between two loans.
The application process is also simple as it seems – anyone can apply for a loan from within the comfortable confines of their home. After the first loan, all subsequent applications for borrowing are usually processed within minutes.

Akshay Mehrotra, Co-founder & CEO, adds, “coupled with a fast and secure application process, lightning speed decision making capabilities and precise data analytics, EarlySalary aims to ensure that the loan you apply for, is available as soon as possible.”

When are you getting started?
Earlysalary.com has a range of solutions – from direct cash to your bank, to school fees to be paid in EMIs, and even transfers to ecommerce wallets such as Amazon’s. Earlysalary credit can also used to pay for shopping on Big Bazaar and other portals. It honestly can’t get easier than this if you’re looking for that extra salary at the end of your month. Get your salary advance now!

How to Improve Your Credit Score In 5 Easy Steps?

Credit scores, commonly called CIBIL scores, [Credit Information Bureau (India) Limited] are a crucial parameter that lenders evaluate before approving personal loans and credit cards. As per the RBI’s mandate, all banks should check the CIBIL score of every loan/credit card applicant at the time of evaluation. A poor CIBIL score reflects poor credit management skills, and makes you an undesirable borrower.

Fibe understands that you should be in complete command of your finances. To help you with this goal, we have listed 5 simple steps to improve credit score:

  1. Timely credit payments: Slacking off on bill payments can lower your credit score. Missing deadlines may cause a significant drop as it indicates that you are not a responsible borrower. There is no quick fix to this, because credit scores reflect credit history, so a late payment could affect your report for years.
    Pay bills, including but not limited to, credit card payments, rent, utilities and other bills on time for a hassle-free future lending experience. Another way is by limiting your card spending to 50% of the limit or conversely increasing your card spending limit. Spending more than 50% of your card limit signifies that you might not have enough to repay your debt obligations in future.
  2. Lower balances: Remember that you should spend only as much as you can repay within the billing date. Pay off your debts as soon as you can and keep card spending on the lower side. Another way to lower balances is by keeping the credit utilisation ratio up to 30% or less.
    Lower balances – which include unpaid dues on loans and low or zero balances on credit cards can positively reflect on your credit score. This can also help you manage your finances better.
  3. Retain your old credit card account: You may have to switch to newer cards for various reasons. However, changing accounts isn’t the best of ideas. If you have a credit card account that is well managed, it is better to retain it for long as longevity of such an account can increase credit score. Good repayment history reflects your credibility as a lender.
  4. Report and resolve inaccuracies: If you discover any discrepancy in credit report, appeal for clarification if you have a valid proof to support your point. Disagreements and errors like typographical data entry errors or software errors can occur, so you’ll want to get them rectified at the earliest to avoid future trouble. The appeal for rectification must be addressed within a timeframe of one month (30 days) by the lender or financial agency/institution. Ideally, you should not apply for a fresh credit until old credit score disputes are resolved.
  5. Use a secured card: Credit score can increase by using a secured credit card which is offered by many Indian banks such as ICICI Bank, Citibank, SBI, Axis Bank etc. These cards are issued against a fixed deposit of a nominal amount. Timely balance payments can increase credit score. So if due to some circumstances you default on payments, your bank will immediately liquidate the FD against which you have received the card and the debt will be repaid. This option is ideal for those with low credit scores or those with no credit history. It can improve your credit story and gradually, increase your credit score.

Fibe Credit Score Analyser helps you to compare your credit score against Fibe’s best borrowers and understand where you stand. You can get to know the impact of your credit behaviour easily and tips on actions that can help you boost your score.

Head to the Fibe App today and begin your journey for better credit health!

FAQs on improving credit score

How can I raise my credit score in 30 days?

It takes at least 6 months to increase your credit score in general. While most lenders report repayment behaviour and other facts about your credit history to credit agencies every month, boosting your credit score can take longer.

What is the fastest way to improve credit?

The fastest ways to improve your credit score is by:

  • Increasing the credit limit on your credit card and using up only 30% of it
  • Correcting errors in your credit report
  • Clearing existing debt

How can I boost my own credit score?

You can increase your credit score by paying your dues on time, decreasing your credit utilisation ratio, paying off existing loans in full, not applying for too many loans simultaneously and keeping your older credit card accounts active to increase the length of your credit history.  

What are 3 things that will raise your credit score?

The 3 most important things to increase your credit score are making timely payments of EMIs and credit card bills, using less credit from available limits and showcasing experience with a mix of credit instruments.

Is there a way to update your credit score faster?

While there is no way to update credit score quickly, you can boost it by paying off any existing debt in one shot if your finances allow it. You can also get your credit card limit increased by talking to the issuer. This helps to decrease your credit utilisation ratio.

How to reset your credit score?

There is no way to reset your credit score as it is based on your credit history. However, you can increase it with tips like being diligent with repayment and paying credit card bills on time.

How can I get a 700 credit score in a month?

Improving your credit score in a month is usually impossible, but you can dispute inaccuracies in your credit report and clear your loans to boost it quickly. You can also pay off any existing credit card balance to increase your score quickly or get your limit extended.

Emotional Intelligence for Workplace Leaders

By: Sudhir Dhar, Director – Group CHRO, Motilal Oswal

Emotional Intelligence is a type of social intelligence that involves the ability to monitor one’s own intelligence related to emotions and also respect other people’s emotions and use this information to guide one’s thinking and action.

Emotional intelligence is the ability to identify, use, understand, and manage emotions in positive ways to relieve stress, communicate effectively, empathize with others, overcome challenges, and defuse conflict. Emotional intelligence impacts many different aspects of your daily life, such as the way you behave and the way you interact with others.

Importance of EI in organizations
All matured organizations today are embarking or have already been on a journey to make themselves more emotionally intelligent as it has been seen that an organization’s collective EI has an impact on the bottom-line. One of the strongest arguments for the economic advantage of EI in organizations is given by Jac Fitz-Enz, who is known for his extensive work on “the human asset concept” and “human capital ROI”. He has analysed a data of about 600 organizations, including quite a few in India, selected for profitability and other proxies of performance. He identified similar/common key practices in managing people. These are similar with the emotional competencies that symbolize top-performing professionals and thus concluded that EI is a significant factor contributing to their performance.

Building EI in organizations
EI can definitely be developed. However, the L&D practices at most organizations are not prepared for it. It requires an engagement of our emotional habits. Changing habits such as learning to approach people positively instead of avoiding them, to listen better, or to give feedback skillfully, is a more challenging task than just adding information.

Motivational factors also make it more difficult and complex than cognitive learning. It often involves ways of thinking and acting that are more central to an individual’s identity. The prospect of needing to develop greater emotional competence is not easy for us to take. Thus, it is more likely to generate resistance to change.

A systematic and committed approach is necessary to build emotionally competent organizations. A strategic cycle of assessment – learning – practice – feedback over time will enable organizational members to build competencies that can help develop high performing leaders for the organization.

According to Daniel Goleman, an American psychologist who helped popularize EI, there are five main elements of emotional intelligence:

Self-awareness
Self-regulation
Motivation
Empathy
Social skills

The more that you, as a leader, manage each of these areas, the higher your emotional intelligence goes.

1. Self-awareness
If you’re self-aware, you always know how you feel, and you know how your emotions and your actions can affect the people around you. Being self-aware when you’re in a leadership position also means having a clear picture of your strengths and weaknesses, and it means behaving with humility.

So, what can you do to improve your self-awareness?

Keep a journal – Journals help you improve your self-awareness. If you spend just a few minutes each day writing down your thoughts, this can move you to a higher degree of self-awareness.
Slow down – When you experience anger or other strong emotions, slow down to examine why. Remember, no matter what the situation, you can always choose how you react to it. (Our article on Managing Your Emotions at Work will help you understand what your emotions are telling you)

2. Self-regulation
Leaders who regulate themselves effectively rarely verbally attack others, make rushed or emotional decisions, stereotype people, or compromise their values. Self-regulation is all about staying in control.

This element of emotional intelligence, according to Goleman, also covers a leader’s flexibility and commitment to personal accountability.

So, how can you improve your ability to self-regulate?

Know your values
Hold yourself accountable
Practice being calm

3. Motivation
Self-motivated leaders work consistently toward their goals, and they have extremely high standards for the quality of their work.

How can you improve your motivation?

Re-examine why you’re doing your job
Know where you stand – Determine how motivated you are to lead.
Be hopeful and find something good – Motivated leaders are usually optimistic, no matter what problems they face. Adopting this mindset might take practice, but it’s well worth the effort.

4. Empathy
For leaders, having empathy is critical to managing a successful team or organization. Leaders with empathy have the ability to put themselves in someone else’s situation. They help develop the people on their team, challenge others who are acting unfairly, give constructive feedback, and listen to those who need it.

If you want to earn the respect and loyalty of your team, then show them you care by being empathic.

How can you improve your empathy?

Put yourself in someone else’s position
Pay attention to body language
Respond to feelings – You ask your assistant to work late – again. And although he agrees, you can hear the disappointment in his voice. So, respond by addressing his feelings. Tell him you appreciate how willing he is to work extra hours, and that you’re just as frustrated about working late. If possible, figure out a way for future late nights to be less of an issue (for example, give him Monday mornings off).

5. Social skills
Leaders who do well in the social skills element of emotional intelligence are great communicators. They’re just as open to hearing bad news as good news, and they’re expert at getting their team to support them and be excited about a new mission or project.

Leaders who have good social skills are also good at managing change and resolving conflicts diplomatically. They’re rarely satisfied with leaving things as they are, but they don’t sit back and make everyone else do the work: They set an example with their own behavior.

So, how can you build social skills?

Learn conflict resolution – Leaders must know how to resolve conflicts between their team members, customers and vendors. Learning conflict resolution skills is vital if you want to succeed.
Improve your communication skills – How well do you communicate
Learn how to praise others – As a leader, you can inspire the loyalty of your team simply by giving praise when it’s earned. Learning how to praise others is a fine art, but it pays.

To be effective, leaders must have a solid understanding of how their emotions and actions affect the people around them. The better a leader relates to and works with others, the more successful he or she will be. Take the time to work on self-awareness, self-regulation, motivation, empathy, and social skills. Working on these areas will help you excel in the future!

Want to reduce your taxable income to Rs 5 lakh? Here’s a list of all deductions you can claim

The Interim Budget 2019 introduced some goodies for those earning below INR 5 Lakh per year. So, if your annual gross income ranges between INR 6 to 11 lakhs, you can now try and claim certain tax deductions in order to reduce your taxable income. With the low and middle income group in mind, the Interim Budget 2019 put forth a proposal under Section 87A on full income tax liability for those earning up to 5 lakh taxable income for FY 2019-20.

Before we begin, a quick primer on income tax – which is calculated as follows:
* The sum of all sources is added up to calculate gross total income
* Addition of deductions and other exempted allowances are subtracted
* The net result is termed as the taxable income

It is the above resulting figure that decides the 100% tax rebate as per the 2019 Budget proposals. Now, let’s move to the deductions available (to most individuals) under the Income Tax Act:

1. Income Tax Deductions of Investment under Section 80C
A popular Income Tax Deduction method lies under Section 80C, that allows investments in specified instruments.
These can include:
PPF accounts
Tax Saving Mutual funds
Tax Saving Fixed Deposits
National Savings Certificate
Repayment of Principal on Housing Loan
Premium on Life insurance policy
Equity Oriented Mutual funds
Contribution to Employee provident fund

2. Income Tax Deductions for contribution to pension funds under Section 80CCC and 80CCD
These are income tax deductions which allow payments (of any amount), helping in the initiation of annuity plans of any insurance company receiving pensions. The person is allowed a deduction for the same amount paid under Section 80CCC.
If the person makes the contribution to a notified pension scheme of the Central Government like the National Pension Scheme (NPS), they too are allowed a deduction under Section 80CCD.

3. Income Tax Deduction for Interests on Savings Account under Section 80TTA
A deduction of Rs. 10,000 under Section 80TTA (Chapter VI-A) can be claimed from the interest earned on your Savings Bank Account. This interest income is added under ‘Income from Other Sources’ and then a deduction is provided.

4. Income Tax Deduction for Interests on House Loans under Section 24
Under Section 24, a person with any home loan is allowed to claim deductions for the interest levied on it. It is vital to understand that the deduction is for the levied interest amounts, and not for the paid ones.
Furthermore, under Section 80C, the principal amount of Home Loan repaid is also allowed a deduction.

5. Deduction for Investment made under an Equity Saving Scheme under Section 80CCG
Also known as the Rajiv Gandhi Equity Savings Scheme, this income tax deduction is allowed to all who invest in listed shares or listed mutual funds in a given financial year. The deduction claim includes up to 50% of the amount invested. This is also subjected to a maximum of Rs. 25,000 only.
It is also important to note that this deduction is only applicable for first time investors with a lock-in period of 3 years from the date of acquisition.

6. Deduction for payment of Medical Insurance Premium & Health Check-up under Section 80D
If a person makes any payment for a medical insurance premium either for themselves, their spouse, or their children, they are allowed to claim an income tax deduction for it under Section 80D. This deduction is dependent on whether the individual insured is a senior citizen or a non-senior citizen.
Further, if any amount has been paid for preventive health check-up, deductions are allowed for them as well.

7. Income Tax Deduction for Disability under Section 80DD and 80U
Disabled individuals are allowed deductions under Section 80DD. Dependent family members of disabled persons are allowed deductions under Section 80U. These disability deductions are also defined in the Income Tax Act.
Income Tax Deduction for Treatment of Specified Diseases under Section 80DDB

8. Income Tax Deductions are also provided for treatment of specific diseases for individuals with the disease or for those dependent on the diseased. The deduction is allowed for the actual amount paid for the treatment or a minimum amount of Rs. 40,000 or higher.

9. Income Tax Deduction for Interest on Education Loan under Section 80E
A person is allowed to claim an income tax deduction under Section 80E for the Repayment of Interest on Home Loan taken for Higher Education of Self, Spouse or Dependent Children.
However, it is necessary to understand that this deduction can be claimed only for the repayment of interest on education loan and not for the actual principal amount of repayment. An advantage of this deduction is that there is no maximum limit on the amount to be claimed.
This Deduction is allowed for all Education completions in India as well as outside India.

10. Income Tax Deduction for Donations under Section 80G, 80GGA, 80GGB, and 80GGC
A person can claim income tax deduction for any donation made during the given financial year.
Deduction under Section 80G is a general deduction while the deductions under Section 80GGA, 80GGB & 80GGC are specific deductions. Section 80GGA includes Donation for the purpose of Scientific Research or Rural Development whereas Section 80GGB & Section 80GGC include donations towards all registered Political Parties of the government.

11. Income Tax Deduction for Rent under Section 80GG
If salaried employees who pay house rent, and have no deduction claims of rent (like the HRA exemption) under any other Sections (of the Income Tax Act), then they can claim a deduction under Section 80GG.
Deductions are key income saving tools. With the help of such deductions and exemptions offered by the government itself, there exists a substantial chance of reducing your overall tax payments and maintaining your acquired incomes.

Financial Wellness in India and the Technologies Aiding It

There’s no stress like financial stress. Money plays a very important role in our lives and not having enough money could disrupt our health, both physical and mental. Not to forget the impact it would have on the performance at the workplace. In the light of increased workload and pressure, employers are now taking the financial wellness of their employees very seriously.

What is Financial Wellness?
Financial wellness refers to the overall health and stability of an individual in monetary or economic terms. It plays a key role in keeping individuals healthy and happy, and an increasing of companies are making it their top priority today. The average worker today, before even starting his job typically brings with them a huge debt in terms of college loans and personal loans that need to be paid off.

Organisations have now begun taking an active interest in improving the everyday financial situation for their employees. This need not be directly in the form of money. Food vouchers, sponsored trips or even simple spa and movie tickets are given out regularly as morale boosters, and they’re working.

How is Financial Wellness implemented and what are the technologies aiding it?
Ever since the onset of online wallets and digital payments, organisations have found it easier to give out benefits and bonuses. Sodexo meal coupons for example, have been adopted by almost all major corporates and are accepted at almost every eating joint in the country. The result? Flexible meal plans plans, more variety for lunches, and increased consumer spending – often resulting in higher happiness and engagement levels. Sodexo coupons are a win-win situation for both the employers and the employees as it saves them a large amount of money that would have otherwise been deducted as tax. The concept has become extremely popular and Sodexo is now the most widely accepted meal card.

Paytm too has rolled out a food wallet feature that is competing head to head with Sodexo, with similar features and benefits. Employees can now eat at KFC, PizzaHut, Burger King, or Taco Bell, while the Paytm food wallet also allows them to carry out their monthly grocery shopping at Big Bazaar.

Companies are also issuing corporate credit cards to reimburse any excess expenses carried out by the employee for the organisation. This could include travel expenses and client meals. Several banks, including State Bank of India, and ICICI Bank have extended their support to a prepaid card model. Expense management brand Happay has also created prepaid cards for business purposes, so that employers can get their money reimbursed easily.

Multiple credit-based companies are also trying to ease the financial pressure of employers and providing loans and salary advances without any added expense.

AmazonPay and FuturePay have partnered with EarlySalary in order for you to shop at the end of the month, without the impending thought of paying immediately. Another app – Simpl, allows people to collect all their online bills so that they can pay the amount in full at the end of the month.

EarlySalary is pioneering the concept of a salary advance to the mass market:

The model focuses on an instant salary advance that lets you pay off all piled up bills, but extends to far more uses – for example, you could splurge it on that dress you have been eyeing for a long time.
Users have a dynamic borrowing limit, depending on their needs, where they can pay back the money in equal monthly installments (EMIs).
Your child’s school takes only bi-annual payments? No problem, the EarlySalary School FeES feature allows you to pay off the entire amount in one go through a salary advance. The borrowed money can be paid back in installments without any additional charges.

Financial Wellness Is Crucial
Financial wellness directly impacts employee productivity. It isn’t rocket science to guess that stressed employees will not perform optimally at the workplace. No surprises then that organisations are also encouraging employers to take meditation and yoga classes. Some companies even offer to reimburse a part of their employee’s gym fees as a sign of encouragement and support. Once employers start promoting and helping with financial wellness, employees interaction and engagement sees an increase. Then there’s a host of other benefits:

Employer costs, such as medical expenses reduce.
The average retirement age also increases if you’re dealing with healthier employees.
Fewer work days are missed if a financial wellness plan is in place.
Perhaps most importantly, low stress on employees lowers attrition rates as well.

Financial Wellness is a top concern for most companies today, with employers trying to fight the financial stress and burnout of their employees head-on. From monthly bonuses and team outings to family and child support, companies have come a long way on financial wellness is concerned, and this would not have been possible without the tech easing the whole process.

5 Reasons a Salary Advance is All We Need

Among the many reasons for salary advances are the added expenses. But that’s not all where salary advances can prove to be useful. For instance, the rising costs may lead employees to borrow money from home or live a very frugal lifestyle towards the end of the month. But by getting a salary advance, they can avoid this.

A salary advance involves paying an employee a part of his pay in advance and making up for it in future salary payments. As such, opting for this has many benefits – from quick access to easy repayment. Read on to know more. 

Benefits of Salary Advance

Here’s a list of pros you stand to enjoy when you opt for this facility:

#1 Convenient and Flexible Way to Access Funds

Taking a loan from a bank can involve lengthy application and approval processes. In comparison, a request for a salary advance is much simpler and easier. Not just that, you get to enjoy flexibility in terms of amount and interest rates with advance salary adjustment.

Salary advances take convenience to the next level as lenders deduct the repayment amount from your future payslips. Moreover, since the minimum amount for salary advance is quite low, you need not borrow any hefty amount if not needed. 

#2 Great for Unexpected Emergencies

Expenses for treating sickness, hospitalisation, or other emergencies can burn a hole in your pocket. While you may think to liquidate your investments when such a situation arises, you don’t have to. Instead, you can request a salary advance and cover the costs easily without losing your assets or savings. A salary advance also allows you to pay for any unexpected big-ticket bills, be it credit card payments or expenses for your vacation. 

#3 Easy Repayment Modes

As opposed to personal loans and other lending options, salary advances offer flexible repayment schedules. Since they generally align with your payday, problems like inadequate cash during the repayment period do not arise. As such, seamless repayment is one of the reasons for a salary advance request. 

#4 Quick Disbursal

Lenders also sanction salary advances quickly and disburse the funds as quickly as possible. On the other hand, the approval and disbursal of traditional loans may take weeks. Hence, a salary advance can be an ideal option if you wish to secure funds quickly.  

#5 Low-Interest Rates

As compared to bank loans, salary advance loans have lower interest rates. This allows you to save considerably on interest payments. In addition, they only require you to pay interest on the amount that you withdraw and utilise.

Why Choose a Salary Advance Loan?

Here are the reasons why employers must opt for a salary advance loan from Fibe:

  • You can implement it without any cost or liability
  • It allows you to attract top talent and reduce employee attrition
  • It only requires minimal tech integration
  • Salary advances reduce financial stress and increase productivity

Here are the reasons why employees should get a salary advance from Fibe:

  • You can get a salary advance of up to ₹5 lakhs
  • The repayment period ranges between 3 and 36 months
  • It offers a reduction benefit of 0.5% on interest rates
  • Fibe also offers free financial guidance sessions from experts

In case you cannot get salary advances from your employer, you can always get an instant loan from Fibe. Apart from the hassle-free online loan application, you get to enjoy a loan amount of up to ₹5 lakhs. You also get affordable rates, zero foreclosure charges, flexible repayment and more. Download the Fibe instant loan app or visit the website to apply. 

FAQs on Salary Advance

How to get a salary advance?

Getting a salary advance from Fibe is simple and instant, provided that your organisation offers this facility. If yes, then all you need to do is follow a few easy steps:

  • Check for a banner on your CRM portal or an email from your HR with a link
  • Click on the link and apply through the Fibe App or the official website
  • Register with your mobile number, enter your basic details and upload KYC documents
  • Select the loan amount, choose the repayment tenure and get an instant approval

How does salary advance work?

If your organisation provides this facility, then you can access your salary at any point through a salary advance. With Fibe, you can get up to ₹5 lakhs directly to your bank account with flexible repayment tenure. You can also use the money without restrictions or limits.

What is a pay advance?

Salary or pay advance refers to the same financing concept. They just act as synonyms for each other.

What is the rule for advance salary?

While some organisations provide up to 50% of an employee’s net salary as advance, others may provide up to 80%. They will then deduct the amount from your future payslip.

How many times can I take salary advance?

In general, you can make up to 3 requests for a salary advance. However, this depends on your employer and the lender with whom they have tied up. 

What is a good reason for a salary advance?

You can take a salary advance for myriad purposes like:

  • Financing medical bills
  • Making rent payments
  • Paying credit card bills
  • Meeting vacation expenses