STAFF LOANS

WHAT DO WE OFFER?

Several companies have decided to terminate their in-house staff loan facility due to new regulatory requirements. Vital Credit now provides an employer access to finance without exploiting the employees. By making use of Vital Credit, the employer empowers his employees to meet their needs, thereby demonstrating a compassion that benefits his relationship with his workforce and the trade unions. At the same time he prevents his employees from being overextended with credit outside his company’s guiding principles.

Because the employer and the trade unions are involved in formulating the credit granting criteria, it can contribute to healthy labour relations. Marketing of Vital Credit’s facility is done in accordance with the employer’s human resources (HR) guidelines and the valuable input of the relevant trade unions.

HOW DOES IT WORK?

  • The employer, Vital Credit and the relevant role players engage in discussions to determine the credit granting guidelines.
  • The parties conclude the arrangement in a concise agreement that will govern the predefined arrangement, with no financial risk to the employer.
  • Vital Credit introduces the service to the employees via different forms of media, such as brochures.
  • The employee lodges the loan application via fax, e-mail or telephonically.
  • Vital Credit validates the application and approves it via electronic interface if the applicant qualifies.
  • Vital Credit promptly communicates the outcome of the validation to the employee. The outcome could be that a lower amount is granted.
  • If approved, Vital Credit pays the amount of the loan into the bank account of the employee on the same day of the approval.
  • Vital Credit provides instalment deduction schedules in accordance with payroll intervals and cut-off dates.
  • The employer deducts the monthly instalment from the employee’s salary and pays it over to Vital Credit.
  • The employer supplies a list of actual instalments successfully deducted, and reasons for non-payment.
  • The employer transfers the monies due to Vital Credit.
THE LOANS PROCESS
WHAT ARE THE BENEFITS?

There are a number of benefits to both employer and employee:

  • Loan management is outsourced to a credible and reliable third party.
  • Administrative hassles are avoided.
  • Employers can show that they care about their employees’ financial wellbeing through a structured loan process.
  • Employees have access to a loan facility that is fair and discreet.

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