Salary Advance Loans in Nigeria – A Better Option

As an average Nigerian employee whose payday is by default the closing day of the month, the cost of living can be quite tough on your wallet. From the ever-rising cost of maintenance to constant financial emergencies — the pressing needs can be endless.

It’s no wonder that most of us have found ourselves in a financial bind at one point or another. And when it comes to emergencies of this sort, taking loans to cover up can be irresistible. In such cases, salary advance loans have become a popular option for many Nigerians. 

At least, Salary advances are better off than obtaining loans via the not-so-pleasant routes like credit unions or peer-to-peer sources, for fear of exorbitant interest, collateral requests, and others.

A report from Ernst and Young reveals that 80% of employees would use a form of salary advance loan if offered, because of the minimal interest rates, and other perks that can be managed.

Deservedly so, a salary advance loan is the type of loan that allows employees to borrow a percentage of their salaries (mostly 60% – 40%) before their payday. In most cases, these loans come with interest rates and fees, making prompt repayment very difficult. Although these loans can be helpful in emergencies, they can also lead to financial instability if not managed properly.

That’s why the emergence of On-demand Pay has made salary advance loans less desirable. Even though On-demand Pay is a relatively new concept that allows employees access emergency funds without taking loans, it’s fast becoming adoptable amongst Nigerian employees, because of pleasant modalities.

Now, you’re probably thinking “What’s so special about On-demand Pay, and why is it better than salary advance loans?

As a way of answering your question, we’d show you:

  • What on-demand pay is,
  • Why it’s better than salary advance loans
  • And the best platform to start your On-demand Pay journey.

Without further ado, let’s go straight into it.

What’s On-Demand Pay?

Simply put, On-demand Pay is a concept that allows employees access to their earned wages before their normal payday. More like cashing out as you’re working.

Unlike salary advance loans, On-demand Pay does not require interest or charges of any sort. Instead, employees can access their earned wages at any time and pay a fixed transaction fee, depending on the platform.

How Is On-Demand Pay A Better Option To Salary Advance Loans In Nigeria? 

Here are some reasons:

No Interest Fees

One of the biggest advantages of On-demand Pay is that it does not require employees to pay any interest or fees, unlike salary advance loans that come with interest rates that make repaying more difficult. On-demand Pay only requires a small transaction fee. This means that employees can access their earned wages without worrying about additional costs.


 Another advantage of On-demand Pay is its flexibility. With On-demand Pay, employees can access their earned wages whenever they need them, to cover unexpected expenses without waiting for payday. On the other hand, salary advance loans are limited to a specific amount and duration, making it difficult for borrowers to manage their finances effectively.

Better Financial Management

On-demand Pay promotes better financial management for employees. By accessing their earned wages whenever they need them, employees can avoid accumulating debt or falling behind on bills. This invariably helps improve overall financial stability.

Reduced Stress

Finally, On-demand Pay can help reduce financial stress among employees. When employees have access to their earned wages, they can cover unexpected expenses and emergencies without worrying about the consequences. This can lead to a better work-life balance and improved mental health.

Now, you know why On-demand Pay is a better option for accessing emergency funds than salary advance loans.

The Best Platform To Access On-Demand Pay

If what you’re looking for is the number one platform to get started with On-demand Pay, Earnipay should be your go-to.

Earnipay’s on-demand service provides you with the option to access 50% of your earned salary as early as the 1st day of the month, so far you’ve earned it. What’s more soothing to hear is the fact that you’re not restricted in the number of withdrawals you can make from your salary. You’ve earned it, so you can withdraw your earnings multiple times on Earnipay.

It’s important to note that On-demand Pay is dependent on two key things:

  • First, your employer needs to add you to Earnipay as that confirms that you are employed with their company.
  • Secondly, your employer needs to provide your monthly salary information, which our system will then use to calculate your daily earnings by dividing the total salary by the number of days in the month. After which, you’ll receive an invite through the email address provided by your employer for you. There, you’ll be asked to activate your account via any of our channels: website or mobile app. Once your account is activated, you can now access your daily earnings through Earnipay’s On-demand Pay feature. 

You can refer your employer to start offering On-demand Pay to you and your colleagues today. 

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