First of all, let’s look at what private payroll loans are.
This type of credit can be offered to employees of a private company who work with a formal contract. Discharge is made through direct payroll discounts even before the salary falls into the employee’s account. Because of this, there is greater security for the bank that can then offer one of the lowest interest rates on the market.
So let’s see 6 advantages of this type of transaction.
1 – Low interest rates
This is the main advantage of deductible payroll loan to the employee. With low interest rates, it is able to solve financial problems or supply an emergency without major consequences. This is because the interest, besides being lower, is fixed and the payment time can be calculated at the time of the contract.
2 – The payment method helps in the organization
In addition to interest rates being low, payment is guaranteed. This is an advantage for the safer banks, but it also benefits those who owe it. With this practice, the debtor does not curl up, is not in danger of being late and is able to plan his financial life much more easily.
There is yet another aspect of payment that helps maintain financial control. The value of each month cannot be greater than 30% of personal income. This means that it is more difficult to assume a larger payment than the debtor is able to cover, preventing a domino effect that only increases total debt.
3 – The ease in the transaction
This kind of process is very easy for everyone involved. The employee contacts the company HR who directs the employee to contact the partner bank to apply for the loan or apply online when the company has partnered with a credit platform which further facilitates such negotiation.
4 – Increasing Confidence
This is probably the main advantage of payroll deductible credit to companies and is a consequence of the previous ones. An institution that offers employees such loans makes it clear that it cares about and supports them. So, after employer help, the employee’s engagement with the business is much stronger, and he becomes even more loyal.
This has another advantage:
5 – Increased morale
With your questions answered and your financial goals completed, the employee is much more motivated and worry-free. As such, he becomes much more productive and can focus his efforts on getting the job done the best he can.
6 – The lack of risks to the company
Finally, besides being easy, the process is still very risky and laborious. In the event of layoffs or job changes, the employee is entirely responsible. The company only has to worry about sending the payment to the financial institution.
Payroll loans are a great way to help your employee solve financial problems.
Without offering risks to the company and with a great payment condition, the employee works without worries and feels valued and protected. This process is even easier. Join now!
Want to know more? Learn more about payroll loan for employees.