If you’re a young working professional, you will undoubtedly understand what a money shortage toward the month’s end feels like. You know, when you only have a few hundred rupees with you and have to live on that for ten days until your next paycheck comes in? This is quite a normal scenario among youth these days as they are inclined to extravagant spending in the initial ten days of the month. They have to wait another ten days before they realize they are running out of money, and before they know it, they are broke and have to sometimes go without a meal or two because they have almost no money in their account. Nobody wants to run out of money every month and things can get very bad if you have a sudden cash emergency and are unable to meet it because you’re broke.
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How To Prevent Month End Cash Crisis?
Of course, there are various ways to prevent a cash crunch from occurring in the first place.
You only need to be careful with your spending and find a way to save money.
- It’s a good idea to deduct a certain amount from your salary each pay period to cover unexpected costs or emergencies. You don’t have any idea when you might require some additional money for an unexpected crisis, so having some additional cash to help you out without hitting your financial plan generally makes a difference.
- You could also try to live within a daily or weekly budget. You would be able to keep track of all your expenses and cut back on spending that isn’t necessary. You would even be aware of where your money is going and how much you are spending on things like utilities, transportation, and food.
- If you still can’t seem to curb spending, you could try starting a recurring deposit. It is just like creating an emergency fund, only a more robust plan. Depending on your convenience, you can select a short or long tenure and the monthly amount to save. Even if you want to withdraw money early, you can’t until a certain amount of time has passed, like six months. Even then, you lose anywhere from one to two percent in interest. As a result, people are more motivated to save money.
- You can save small amounts of money month on month with the help of Money Club. Money Club is a The Money Club is a safe and secure mobile app based on the concept of Committee and the users can save, invest or borrow sitting at home without the hassle of documentation. It is the first ever social network dedicated to helping members earn money, save money and support one another financially. Here a group of verified members come together and contribute a fixed amount every month for a particular tenure. When you need money, you just have to bid, and the money is in your bank account in six to eight hours that too at low interest rate. It is the best platform for middle-class families who cannot obtain loans in an emergency and must rely on high-interest money lenders. To know more about how it works you can see the video here.
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If you follow the aforementioned advice, you won’t have to deal with a cash crunch every month. However, these suggestions work only at the beginning of the month, when you still have the majority of your monthly salary. When it is already the month’s end and you are short on cash, what do you do? It’s embarrassing to borrow from friends or coworkers because they probably are in the same situation as you. Approaching a bank is your only option if you have a sudden expense to cover and cannot borrow from anyone. However, even that has numerous drawbacks. The traditional lending method that banks use involves a lot of unnecessary paperwork and waiting. Also, a customer’s credit score is the standard on which they lend. Therefore, if you have no credit score (if this is your first loan) or a low credit score, you’ll be in trouble. You should not be troubled even in that case. There are many instant small loan apps in India that lets you get an instant loan from the comfort of your own home in just 15 minutes with minimal paperwork.
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22 Best Instant Small Loan Apps In India
App Interest Rate (per Month) Min & Max Loan Amount Tenure App Rating
Dhani Starting at 13.99% P.A Rs 1,000 – Rs 15 Lakh 3 – 24 months 3.6
India Lends 10.75% – 25% (APR) Rs 15,000 – Rs 50 lakh 12 – 60 months 3.8
Nira 1.67% – 2.25% Rs 10,000 – Rs 1 Lakh 3 – 12 months 4.4
Money Tap 1.08% Rs 3,000 – Rs 5 Lakh 2 – 36 months 4.1
CasHE 2.50% Per Month Rs 1000 – Rs 4 lakh Max 18 months 4.3
Money View 1.33% Rs 5,000 – Rs 5 Lakh 3 – 60 Months 4.7
KreditBee 24% – 29.95% (P.A.) Max Rs 3 Lakh Max 24 Months 4.5
Fibe 24% – 30% (P.A.) Up to Rs 5 Lakh 6 – 36 Months 4.5
Smart Coin 20% – 36% (P.A.) Rs 1,000 – Rs 70,000 91 – 270 Days 4.5
Flex Salary Maximum 36% (APR) Up to Rs. 2 Lakh Up to 3 Years 4.6
Home Credit 24% – 49.5% Up to Rs 5 Lakh 12 – 48 Months 4.4
Lazy Pay 18% – 25% (P.A.) Up to Rs 5 Lakh 3 – 24 Months 4.4
mPokett 1% – 6% Rs 1000 – Rs 30,000 Max 4 months 4.4
Bajaj Finserv 10.49% p.a. onwards Up to Rs 50 Lakh 1 year to 5 Years 4.5
Loan Tap 11% – 24% Rs 50,000 – Rs 10 lakh 6 – 60 Months 4.0
Pay Sense 1.4 – 2.3% Rs 5,000 – Rs 5 Lakh 90 – 540 Days 4.3
Rupee Redee 0.20% per day Rs 2,000 – Rs 25,000 7 Days to 3 Months 3.9
Upwards Starting at 9% Up to Rs 2 Lakh Up to 60 Months 4.2
Stashfin 11.99% – 59.99% APR Rs 1000 – Rs 5 lakh 3 – 36 Months 3.8
Navi 9.9% p.a. onwards Up to Rs 20 lakh Up to 72 Months 4.3
Credy 1% – 1.5% Up to Rs 1 Lakh 3 – 12 Months 3.8
Fullerton India 11.99% – 36% Up to Rs 25 Lakh 12 – 60 Months 4.1 Read: 10 Best Money Lending Apps For Financial Emergencies
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