Sapa: Loans & Advances
Hello good folks. How was your week? Welcome to May - We are almost at the halfway mark of 2025. How time flies!!
Still on our topic. We have defined loans and advances. We know they both involve accessing funds to meet urgent needs but work differently.
Key differences between both:
- Advances are taken against an assured expected payment and not repaid while loans have no assured payment backing them and are repaid
- Advances do not attract interest and processing charges while loans do
- Advances are usually given to an employee by the employer. Loans can be taken by anyone from any MFI (Microfinance institution)
- Advances are taken against an assured expected payment and not repaid while loans have no assured payment backing them and are repaid
- Advances do not attract interest and processing charges while loans do
- Advances are usually given to an employee by the employer. Loans can be taken by anyone from any MFI (Microfinance institution)
