Calculating Your Instant Cash: How Much Can You Get Based on Your Salary?

Apr 26, 2024
 |  1 min read

Life breaks out unexpected expenses. Life is sometimes full of unforeseen turns: you must deal with a sudden car repair, a medical bill, or that perfect opportunity you simply can't afford to miss, and you need some extra money immediately. Here is an area of quick money loans, or salary loans, which play a significant role. However, before you rush, you need to understand how much instant loan online you can qualify for and its relation to traditional loans.

What is Instant Cash, and How is it Calculated?

Instant cash loan are short-term and unsecured loans that can be borrowed with minimal hassle and mostly without collateral. Unlike the usual loans, which require lots of paperwork and credit checks, instant cash consideration takes your income status to know if you are eligible. The loan amount you qualify for is directly related to your net take-home pay. Therefore, it is inevitable that you can repay the loan in time, starting from the specified period.

Confused about what is instant cash, and how is it calculated? Here's a simplified breakdown of how the calculation might work (specifics may vary depending on the lender):

  • Net take-home salary: Your salary net of taxes and social security deductions.
  • Loan-to-salary (Salary) ratio (LTSR): It is a loan-to-value (LTV) ratio that shows the maximum loan-to-income ratio that a lender is ready to grant.

There could be several instances, such as a lender extending three 3-year repayment tenure for a 90-day loan.

How is Instant Cash Different From Regular Loans?

While both instant cash and regular loans provide financial assistance, some key differences exist. Here’s how is instant cash different from regular loans:

  • Loan Amount: Instant cash offers a lower loan size compared to what you would get from a regular loan.
  • Repayment Period: Express cash loans are usually payable within a shorter period, about 2-3 months on average. Standard loans tend to be repaid over several years.
  • Eligibility Criteria: Traditional loans almost always use credit scores, while instant cash considers your income and employment as the main criteria.
  • Processing Speed: Quick Loans Online, which embodies its name, provides a faster loan application and approval process than conventional loans.
  • Interest Rates: Instant cash is an unsecured loan with a higher risk profile, so its interest rates are higher than those of a traditional loan with a longer term.

What Factors Determine How Much Instant Cash You Can Get?

Once you are clear about instant cash loans and whether they differ from regular loans, you may have another question to understand: What factors determine how much instant cash you can get?

Here are some key factors that lenders consider when deciding your instant cash eligibility and loan amount:

  • Employment Status: A job with a steady paycheck and income motivate creditors to lend money. Continuous paychecks indicate reliability in terms of income-generating and debt-repayment abilities. However, this may cause a decline in lending to contract or freelance workers with fluctuating incomes, resulting in a reduced loan amount or stricter eligibility criteria.
  • Existing Debt Obligations: Lenders are not isolated entities. They operate in a system shaped by various factors. They also look at your current debt obligations, which include your credit card bills, loans, and other existing debts, to determine your overall financial burden. A high debt load can limit a loan amount. Lenders may be doubtful about giving you more credit if you are already spending a large part of your income on repaying debts.
  • Credit History (For Some Lenders): Although it is not always the determining factor, sometimes credit history can be a point of interest for some lenders. This record is a summary of your previous borrowing and repayment behaviour. A strong credit history and high credit score indicate good financial management and improve your chances of getting your loan approved. On the other hand, an adverse credit history with missed payments or defaults may cause a reduction of a loan amount or even loan rejection.
  • Loan Repayment Tenure: The tenure of loan repayment, the length over which you will repay the loan, is of great importance in determining the maximum loan amount you can get. The main rule is the shorter the loan term (for example, three months), the higher the amount you can borrow with your salary. A short-term period means the lender will pay lower interest costs over the loan period. On the other hand, extended loan terms (180 days) usually come with a smaller loan amount since the lender's money is tied for longer.

Maximising Your Instant Cash Potential:

Here are some tips to increase your chances of getting approved for the maximum instant cash loan:

  • Maintain a Healthy Net Take-Home Salary: Thus, a higher wage means a higher potential loan sum.
  • Minimise Existing Debt: The less debt you have, the more likely lenders will perceive your financial standing positively.
  • Choose a Shorter Loan Term: While shorter terms have higher monthly payments, they can probably enable you to borrow more money. On the other hand, you must make repayment a budgetable item.
  • Maintain a Good Credit Score (if Applicable to the Lender): Although it is not the most critical factor, it helps you be safe.


Instant loans online may be a good resource for covering a short-term emergency. However, one must be careful about borrowing. Be careful with the interest charge, and ensure the repayment will not put you in a financial bind. It is also necessary to consider other options, like earmarking emergency funds, to avert instant cash usage in the coming time.

Gaurav Jalan

Gaurav Jalan is the Founder and CEO of mPokket, a digital lending platform serving underserved Indian youth. He leverages technology and experience to deliver cost-effective credit to marginalized populations. In his role, he provides strategic direction and oversees execution to fulfill mPokket's mission.