Since Earnipay is a renowned financial platform that offers a wide range of pertinent services and products to cater to the diverse needs of our users, there’s recently been a subtle misconception regarding one of our loan services: employee loans & its availability to Earnipay users.
Therefore, in this article, we will clarify the beliefs regarding employee loans and shed light on whether they are available to all Earnipay users or not.
That’s quite paradoxical, as employee loans is exclusively available to Earnipay users, and not all. To explore the reasons behind this limitation, let’s have a clearer perspective on employee loans and Earnipay’s role in it.
Understanding Employee Loans
Simply put, employee loans are financial arrangements between employees and employers, whereby employees can borrow money from their employers before their regular payday.
These loans often serve as a valuable resource for individuals facing unexpected expenses or temporary financial difficulties. However, the terms and conditions of employee loans typically vary, based on the policies established by the employer, or the policy employed by the service provider the employer banks on. And that’s where Earnipay comes in.
Employee Loans & Earnipay Users
As iterated above, an employer can employ the services of a financial provider like Earnipay, to provide employee loan streams for his employees. Reiteratedly, It is crucial to clarify that employee loans are not universally available to all Earnipay users.
Unlike some of our other services that are accessible to all our users, employee loans are an exclusive benefit accessible only to Earnipay users whose companies have signed up for Earnipay’s on-demand pay. Additionally, Earnipay users looking to obtain employee loans must also actively communicate their loan requests through their employers, allowing Earnipay to partner with employers to facilitate employee loans as an additional perk for their workforce.
Requirements for Employee Loans Eligibility with Earnipay
To qualify for an employee loan with Earnipay, certain eligibility criteria must be met, and here are they:
- Employment Status: One of the primary eligibility requirements for an employee loan through Earnipay is being a permanent or contract employee of a recognized organization or company. This requirement helps to establish stability and ensures that the employee looking to obtain the loan has a guaranteed income source.
- Level of Income: Earnipay also takes the borrower’s income level into account when determining eligibility for an employee loan. This criteria ensures that the employee have the financial means to repay the loan and manage their other financial obligations effectively.
- Credit Check: To assess the employees’ creditworthiness, Earnipay conducts a thorough evaluation of their credit history. This process involves reviewing the borrower’s credit score and credit history to determine their ability to repay the loan responsibly. A positive credit history and a good credit score demonstrate financial discipline and increase the chances of loan approval.
Obtaining Employee Loans From Earnipay: How It’s Done
To obtain employee loan through Earnipay, users must follow a specific process:
- Express your interest in obtaining a loan by contacting your company’s HR department.
- Your employer will initiate communication with Earnipay regarding your loan request.
- Earnipay will provide your company with a Service Level Agreement (SLA) or Memorandum of Understanding (MOU) to be signed.
- Complete the Individual Loan Application form provided by Earnipay and submit it through HR.
- Earnipay will assess your creditworthiness to determine loan eligibility.
- Employee loans of up to 50% of your annual net salary will be available, with an interest rate of 3% per 30 days and a maximum loan term of 12 months.
- Once Earnipay completes the necessary checks and reviews, the approved loan amount will be disbursed to you.
- Your employer will deduct loan repayments from your salary and remit them to Earnipay at regular intervals.
While Earnipay is a home for all and sundry due to our comprehensive range of financial services, employee loans are an exclusive benefit accessible only to Earnipay users whose companies have signed up for an on-demand-pay product of Earnipay.
To access employee loans through Earnipay, users must actively express their interest to their employer, who then contacts Earnipay to facilitate the loan process. This collaboration ensures seamless integration of Earnipay’s financial services with the employer’s payroll system, resulting in convenient access to favourable loan terms for all parties involved.