One thing that an employee anxiously waits for is their monthly salary. It’s the reward of their hard work and dedication which gives them financial security to meet their requirements and aspirations. However, even a few days of delayed salary can create major problems in life, leading to frustration and disappointment. Let’s explore various reasons for delayed salary and how a Personal Loan from Hero FinCorp can help overcome the immediate financial crunch.
What are the major reasons why companies delay salaries?
A delay of salary can disrupt an employee's personal life and create an atmosphere of anxiety in the workplace. Here are some possible reasons for delayed salary:
- Cash Crunch in the Company: Although most companies maintain working capital to avoid salary delays, there could be instances like a lack of cash inflow, heavy investments, etc., causing a cash crunch.
- Company Going Through a Rough Phase: A company may delay salary payments if it incurs urgent losses and fails to maintain an adequate financial balance.
- Hard Time in the Entire Sector: If the entire sector is going through a challenging phase, the company might try to maintain its liquidity until things get back on track. Under such circumstances, the company delays salary to manage cash flow.
- Operation Glitch or Technical Error: Sometimes, the reason behind delayed salaries is simply an error by the HR team or an issue on the bank's side.
- Catastrophe: Adversities like recession and pandemic may lead to reduced sales, cash flow issues, operational problems, etc. They may significantly impact the company's financial health, delaying salary.
- Company Going Bankrupt: A company declares bankruptcy when it cannot repay its creditors and meet its financial obligations. Depending on the type of bankruptcy, the employees may not receive their salaries.
How to Deal with a Salary Delay?
Here are a few tips to deal with a salary delay:
- Talking to the employer: Having an honest and open conversation with the employer is essential before taking any action. Expressing concerns, asking for more information, and enquiring about the expected time to receive the salary can help clear doubts. However, it is important to remain respectful and professional during the conversation. The employer might be going through a challenging phase and does not have intentions of not paying the employees' salaries.
- Sending a Demand Notice: This step comes when the issue is not resolved after talking to the organisation. A demand notice is a legal document an employee sends in the event of a delay in salary. Apart from being a formal request for salary payment, it also establishes a record for the event. It can be a helpful document if the need to file a legal dispute arises.
- Applying for a Personal Loan: If the salary is delayed for long and a financial emergency arrives in the employee's life, a Personal Loan serves as a quick funding source to cover the expense. These loans have no usage restrictions, allowing the borrowers to cover various costs until they receive their salary. Moreover, they can prepay the loan before the term as soon as their finances get back on track.
Also Read: Advance Salary Needed? Get A Personal Loan Approved In 5 Minutes
Things to Avoid in Case of Delay in Salary
Here are a few things to avoid in case of a delay of salary:
- Avoid Breaking the Law: Blackmailing the employer, stealing money, or doing anything illegal will only result in criminal charges. Moreover, it will ruin the relationship and impact reputation in the industry.
- Do Not Go on a Strike: A strike without a union is illegal. The union must also meet certain pre-conditions before going on a strike.
- Do Not Stop Working: Stopping the work without a notice period or resignation is illegal.
How does Hero Fincorp Personal Loan help you when the company delays salary?
A Personal Loan comes as the best financial solution in case of a delayed salary situation. Here is how it helps:
- Ample loan amount of up to Rs 3 Lakh to cover various expenses and maintain financial position
- Keeps savings intact while covering regular financial obligations
- No usage restrictions, allowing borrowers to cover various urgent or planned expenses
- No collateral requirement means no risk to the current assets
- Easy Personal Loan eligibility criteria to make funding easily accessible
- Competitive interest rates at 25%p.a, and flexible repayment terms, up to 36 months, to keep the loan cost low
Also Read: Salary Advance Loan – Interest Rates, Features & Benefits
How To Apply for Personal Loan Online?
Here is a stepwise procedure to apply for a Personal Loan online through one of the best loan apps promoted by Hero FinCorp:
- Visit the Hero FinCorp website and download the personal loan app on a smartphone.
- Go to the Personal Loan section after checking eligibility and click Apply Now.
- Fill out personal, professional, and financial details in the application form.
- Scan and upload the necessary documents, including income, identity, and address proofs.
- Review and accept the loan offer.
- Get disbursal in a few hours.
Conclusion
Regular and timely salary is every employee’s right. However, a salary delay leads to a financial crunch and disturbs financial security. Instead of making an impulsive decision or getting involved in an illegal activity, borrow financial support through a Personal Loan from Hero FinCorp and handle the situation respectfully.
Also Read: How To Get Instant Personal Loan Without Income Proof?
Frequently Asked Questions
1. Why is my salary delayed?
There might be several reasons for company salary delay, such as a financial crunch, poor market conditions, or an error from the HR or bank team.
2. Is there a policy or agreement in place for salary delays?
A demand notice is a legal document an employee can send to the employer in case of a salary delay.
3. How can I prevent or prepare for future salary delays?
Managing expenses, keeping emergency funds and having a loan app ready on the phone are the best ways to prevent or prepare for future salary delays.
4. How does a Personal Loan for Salary Delay work?
A Personal Loan provides the required funds in minutes without collateral. These loans have no usage restrictions, the interest rates are competitive, and repayment terms are flexible to avoid any financial crunch during the tenure.
5. How quickly can I get a Personal Loan for Salary Delay?
Since Hero FinCorp – one of the
best loan apps - supports a 100% digital loan procedure, it instantly approves the loan and disburses the loan amount within a few hours.
