Secured Loan by Employer
A Salary loan are sometimes called payday loan. This as a short term loan availed from banks. When a salary loan is availed from a bank, this is not necessarily paid during payday and not thru salary deduction. However there are various Bank’s that offer Salary loan paid thru Salary deduction. This is thru corporate accreditation. Loan application and approval are easier than the ordinary salary loan because payments are more secured because the company itself will do the payment collection and remit the same to the lending bank.
There are multi-purpose salary loan extended to qualified employees of accredited companies. Provides access to credit via Salary deductions. This is the quick and easy solution to employees financial needs.
The company can provide salary loan benefits at special rates and flexible terms, making it affordable and convenient for employees to get a loan.
Company should apply accreditation from the bank to avail of these kind of loans. Various documents are required from the company. Company documents are then submitted to the bank for evaluation.
If application for accreditation is approved, the employees of the company can apply for a personal loan thru their human resources division.
Application for borrowers will be applied through their respective Human resources department. Application form and documentary requirement will be submitted by HRD to the Bank for processing. All process of the application will be performed by the bank after the submission of all the documentations Release of loan will also be through the HRD.
Payment of the loan will be thru salary deduction, total payment of all employees loan will be remitted by the company to the lending bank.
Here are various advantages of this type of Salary loan:
For the Company:
- Eliminates Cash Advances
- No need to use Company’s Funds, the Bank will take care of funding for the loan
- Minimal Administrative work, Bank will take care of the processing and release of loans
- Keep employees happy
- Offers more benefits to the company’s worforce
For the Employees:
- No collateral needed from the employee
- Fast and easy approval
- Enjoy affordable Payment terms
- Convenient repayment thru salary deduction
- Provides easy credit to employees than applying for a personal loan on financial institutions
- Apply for a loan and receive the loan proceeds without having to leave the office
Requirements for Company Accreditation:
- Completely filled out and signed Company accreditation application form
- Photocopy of Income Tax Return (ITR) of the business
- Audited Financial Statement (FS) of the business
- Photocopy of Business Registration Paper
- SEC Registration
- Articles of Incorporation and by-laws
- DTI Registration (for Sole Proprietorship)
- Latest General Information sheet
- Mayor’s Permit
- Company Background / key officers
Eligibility Criteria (Individual Borrowers)
- Permanent employee with a minimum tenure at least 1 year
- Not due for retirement within the term of the loan
- No pending administrative case with present employer Documentary Requirements (for Individual Borrower)
- Fully accomplished and signed application form
- 1 month pay slip
- Photocopies of 2 valid ID’s
- Latest ITR