How to apply for Polaris Bank Salary Advance loan

Last Updated on July 1, 2024 by admin

Polaris Salary Advance is a credit facility designed for salary earners (both Polaris account holders and non-account holders). The loan is a convenient, and accessible solution to customers’ immediate financial needs, as well as serving identified new markets.

workers in private employment, corporate Nigeria, civil servants in state and federal employment have accessed and benefited immensely from the facility extended from the Bank, long before they receive their salary.

The instant digital loan product which is targeted at salary earners who meet the Bank’s Risk Acceptance Criteria (RAC) has a 30 days loan tenor. Renewable monthly.Borrower can get up to Up to 50% of net monthly salary in advance

Also read: Polaris Bank Payday Loan- Requirements and how to Apply

This is Payday loan with an added capability of enabling non-account holders to access quick funds with the same speed and ease as the Bank’s customers.The loan is processed and disbursed in less than 1 minute using USSD code. Disbursed funds can be accessed 24/7 via the ATM or your mobile device using our USSD, PolarisMobile, and Polaris eXperience.

The Salary Advance is a small, short-term unsecured loan that relies on the borrower having previous payroll and employment records. As a Salary Advance beneficiary, you repay it either out of your next paycheck or over an agreed time span.

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what is Polaris Bank Salary Advance loan

Polaris Bank Salary Advance is a short-term loan product designed to help salaried employees who have their salaries domiciled with Polaris Bank to meet urgent financial needs before their next payday. It allows you to access a portion of your upcoming salary in advance, providing a quick and convenient solution for cash flow gaps.

Key Features:

Loan Amount: You can access up to 50% of your net monthly salary.
Tenor: The loan typically has a 30-day repayment period or until your next salary date, whichever comes first.
Interest Rate: The interest rate is 2.5% flat per month, subject to review based on market conditions.
No Collateral: This is an unsecured loan, meaning you don’t need to provide any collateral to secure it.
Quick Disbursement: Loan disbursement is often instant or within a short period upon approval.
Multiple Application Channels: You can apply via USSD code (83312#), VULTe mobile app, in-branch, or through your relationship officer.

Eligibility Requirements:

You must be a confirmed staff member of a reputable organization.
Your salary account must be domiciled with Polaris Bank.
You need to meet the bank’s creditworthiness criteria.

Benefits of polaris bank salary advance loan

Polaris Bank’s Salary Advance loan offers several benefits to eligible salaried employees:

Quick and Convenient Access to Funds:
- The loan application and approval process is fast, often providing you with funds within a few minutes or hours.
- You can apply through multiple channels: USSD code, VULTe mobile app, branch visit, or by contacting your relationship officer.
No Collateral Required:
- Unlike traditional loans, Polaris Salary Advance is an unsecured loan, meaning you don’t need to provide any collateral or security.
Competitive Interest Rates:
- The interest rates are generally competitive compared to other short-term loan options.
Financial Flexibility:
- The loan provides you with extra funds to meet unexpected expenses or urgent financial needs before your next payday.
Improves Credit Score:
- Timely repayment of the loan can help you build a positive credit history, which is beneficial for future financial needs.
No Hidden Charges:
- Polaris Bank is transparent about the interest rates and any applicable fees associated with the loan.
Available to New and Existing Customers:
- Both new and existing Polaris Bank customers with a salary account can apply for the Salary Advance loan.

What can affect my polaris bank salary advance loan eligibility?

Several factors can affect your eligibility for a Polaris Bank salary advance loan:

Essential Requirements:

Employment: You must be a confirmed staff member of a reputable organization in the private or public sector.
Salary Account: Your salary account must be domiciled with Polaris Bank.
Credit History: A good credit history demonstrates responsible financial behavior and increases your chances of approval.

Other Factors that Could Influence Eligibility:

Net Monthly Income: Your net monthly salary will determine the maximum loan amount you are eligible for. A higher income typically results in a higher eligible loan amount.
Debt-to-Income Ratio (DTI): Your DTI compares your total monthly debt payments to your gross monthly income. A lower DTI indicates a better ability to manage additional debt, making you a more favorable borrower.
Employment Stability: A stable employment history with a reputable organization can improve your eligibility.
Existing Loan Obligations: If you have existing loans with Polaris Bank or other financial institutions, it may affect your eligibility for a salary advance loan.
Bank’s Internal Policies: Polaris Bank may have specific internal policies or criteria for evaluating loan applications, which could influence your eligibility.

Tips to Improve Your Eligibility:

Maintain a Good Credit History: Pay your bills and loan installments on time to build a positive credit record.
Increase Your Income: Aim to increase your net monthly salary to qualify for a higher loan amount.
Reduce Your Debt: Pay off existing debts to lower your DTI ratio.
Show Employment Stability: Stay with your current employer for a reasonable period to demonstrate stability.

Remember, meeting the basic requirements doesn’t guarantee approval. The final decision rests with Polaris Bank, based on their assessment of your overall financial situation and creditworthiness.

collateral/Security

1.Salary must be Domiciled with Polaris Bank
2. Credit life insurance covering the risk of death/disability, and loss of job of the Borrower.
3. Undertaking to deduct repayments at salary source and subsequently remit to the Bank.

MANAGEMENT FEE:

1% flat

CREDIT LIFE INSURANCE:

0.5% flat

REPAYMENT SOURCE:

Proceeds of monthly salary payment domiciled to the Lender or any BVN linked accounts in any Bank payable via Remita from source.

Interest rates

The interest rate for the facility is 2.5% flat, which shall be subject to review from time to time in line with the prevailing money market condition

How to Apply for Salary Advance

Polaris Bank offers a few convenient ways to apply for a salary advance loan:

1. USSD Code:

Dial *833*12# from your Polaris Bank-registered phone number.
Follow the on-screen prompts to check your eligibility and request the desired loan amount.
The loan amount will be disbursed instantly into your salary account if approved.

2. VULTe Mobile App:

Open the VULTe app and log in to your Polaris Bank account.
Navigate to the “Loans” or “Salary Advance” section.
Follow the application process, providing the necessary information and documentation.
Once approved, the loan amount will be credited to your salary account.

3. Contact Your Relationship Officer:

If you have a dedicated relationship officer at Polaris Bank, you can reach out to them directly to initiate the loan application process.

4. Visit a Polaris Bank Branch:

Go to your nearest Polaris Bank branch and inquire about the salary advance loan.
Fill out the application form and provide the required documents.
The bank will process your application, and you will be notified of the outcome.

Important Note:

Before applying for a salary advance, ensure that you meet the eligibility criteria and understand the terms and conditions of the loan. This includes the interest rate, repayment period, and any applicable fees. You can find more information about Polaris Salary Advance on their website or by contacting their customer care:

FAQS

Q: What is Polaris Bank Salary Advance loan?

A: It’s a short-term loan for salaried employees to access up to 50% of their net monthly salary in advance. It’s designed to cover urgent financial needs before payday.

Q: Who is eligible for the Salary Advance loan?

A: To be eligible:

You must be a confirmed staff member of a reputable organization.
Your salary account must be domiciled with Polaris Bank.
You need to meet Polaris Bank’s creditworthiness criteria.

Q: How much can I borrow?

A: You can borrow up to 50% of your net monthly salary.

Q: What is the interest rate?

A: The interest rate is 2.5% flat per month, subject to review based on market conditions.

Q: How do I apply for the Salary Advance loan?

A: You can apply through these channels:

USSD Code: Dial 83312# from your registered phone number.
VULTe Mobile App: Log into your account and apply through the app.
Branch Visit: Visit your nearest Polaris Bank branch.
Relationship Officer: Contact your dedicated relationship officer, if applicable.

Q: How quickly can I get the loan?

A: Loan disbursement is usually instant or within a short period upon approval.

Q: How do I repay the loan?

A: Repayment is typically deducted automatically from your salary account on your next payday or over an agreed time span.

Q: Are there any additional fees?

A: Apart from the interest, a management fee of 1% flat and credit life insurance of 0.5% flat may apply.

Q: What happens if I can’t repay the loan on time?

A: Late repayments may attract penalties and affect your credit history. Contact Polaris Bank immediately if you face difficulty repaying the loan.

Q: Is the loan secured?

A: No, the Salary Advance loan is unsecured. You don’t need to provide any collateral.

Q: Can I apply if I am not a Polaris Bank customer?

A: The loan is primarily for existing Polaris Bank customers with a salary account. However, you may check with Polaris Bank if they have any special provisions for non-customers.