PerkFinance, India’s leading salary-linked personal loan provider, has launched the country’s first payroll-linked salary advance product.
PerkFinance partners with companies to provide affordable personal loans to their employees, at no cost and no risk to the company. Its financial products improve employee well-being, thereby boosting productivity and reducing attrition. Additionally, the loans are reported to credit bureaus, which helps improve the borrowers’ credit score, facilitating approvals for higher loan amounts and longer tenures at reduced rates of interest.
With the newly introduced salary advance feature, employees of companies that partner with PerkFinance can receive their salary anytime, based on the number of days worked. Unlike other providers that charge high interest rates, PerkFinance charges only a small processing fee, which is used for legal documentation and credit bureau reporting. Salary advance enables workers to avail up to a month’s salary as the loan amount using the PerkFinance mobile app with minimum documentation.
Yogesh Keswani, co-founder PerkFinance shared – “While there are other finance companies that provide loans to salaried employees based on their salary slips and credit score, PerkFinance’s salary advance feature is the first product in India that is linked to the payroll by the employer. The repayments for the salary advance are directly deducted from the salary. As PerkFinance uses the employee-employer relationship for its risk assessment, PerkFinance offers lower interest rates and faster processing times.”
According to CRISIL Research, unsecured loans showed a CAGR of 27%, between 2015 and 2018, nearly four times the increase in bank credit. The prediction is that outstanding unsecured loans will touch approximately Rs 9.5 lakh crore by fiscal 2021.
“With the new salary advance feature, we are introducing a product enabling employees to encash their efforts whenever they want, giving them the power to control their finances. Employees of partner companies can sign up for the product at a nominal processing fee after which only a minimum charge will be levied for subsequent advances. An employer can then link salary advance to the payroll, the first finance product with that capability. This facilitates repayments to be directly deducted from the salary ,” added Yogesh.