SALARY ADVANCE; THE PROCESS OF GETTING IT IN YOUR BANK.

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

However bank will look at some things such as the kind of organization the individual customer works for and how regular the salary is paid. For a Government worker, the process of taking salary advance is easy as long as the account of the person is domicile to the bank. A customer can walk into the bank and asks for salary advance, but may need to approach his employer to know if he can get the loan request approved.

If you need a few extra naira for an unexpected emergency, there is one source you may not have considered: Your future salary. Depending on where you work, you may be able to get an advance on your salary. Since any loan is really borrowing on future money, this method simply cuts out an expensive middle man; the lender.

Organizations having policy on short-term loans are becoming more common. With salary advance you repay it either out of your next salary or over an agreed time span. Unlike other form of loans, this one requires permission from your employer. Some companies restrict the circumstances under which they will allow such. The most important thing for people to understand is these are real loans. Like a bank or card loan, they have to be paid back on schedule. It is not like borrowing from a friend or family member: saying ‘I will pay you when I can’.

If for whatever reason, you part way with your employer, you will be expected to repay the balance in full when you leave. Before you decide, ask if you need salary advance. Can I pay it back? And what in my financial situation is the real reason I am considering this? Before you take it find out if it is even an option where you work.

Some employers post their pay-advance guidelines on their sites. But if your employer does not, then your next step is the human resource department. Gather information without putting your boss or yourself on the sport before deciding if this is something you want. Expect a little paper work; like fill forms and signing document to acknowledge the loan, specifying the amount and the date you received it and spelling out the payback schedule.

In the event that you terminate your appointment with your employer, and have a severance package or back pay, an employer may simply deduct the reminder of the loan balance from that final cheque. Stick to repayment plan. Nothing will get you sideways with your employer faster than asking for an advance, not being able to pay back and asking for another advance. Send your comment and questions.