Extend loan benefits to employees as part of your organization’s employee welfare proposition
Numerous companies offer financial aid to their employees, which can include early wage access, bill top-ups, and loans as viable options for employer support. However, handling such monetary matters always comes with inherent risks and potential complications. To mitigate these issues, it is crucial to utilize automation tools that enable the efficient and transparent management of loan programs. This is precisely where Workplaze Loan comes into play, offering a comprehensive solution for effectively administering and overseeing employee loans while minimizing potential pitfalls.
Cater to Unique Employee
Provide varied loan schemes such as car loans, house loans etc. Authorized users can set up multiple loan types with varying interest rates and interest rate calculation methods.
Set availability criteria for employees and limits based on employee, job grade, job level, and/or loan type. Integrated with the payroll module for transparent installment payments.
Auto deduct loan payments from employee salaries or accept and reconcile ad-hoc payments. Allow employees to skip payments, make full/partial early repayment. Loan balances refresh after each payment so employees always know what has been paid and what is outstanding.
Loans are integrated with the termination process. If any installments are still outstanding by the time of resignation, they become part of the offboarding “to-do list” and have to be completed prior to the exit. This can be done by deduction from the severance or as an adhoc payment depending on the preferential process.
Allow employee cooperatives to manage loan requests/payments directly without accessing other confidential information. Auto deduct on behalf of the cooperative and credit it to the employees account.
As all other Workplaze features, the Loan module also includes a variety of dashboard summaries that provide quick overviews of overall loan spendings, pending loan requests, due repayment statuses, and loan costs. Alerts and notifications remind of potential approval or processing bottlenecks.
Employee Self Service (ESS)
Workplaze’s embeds Loan ESS functions that are designed to increase the employee autonomy and save Loan administrators and finance teams time. Via the ESS functions, employees can
request loans and keep up to date of their installment payments.
With just a few clicks, employees can request loan programs in a time of need. Employees will only have access to loan programs that are available to them in line with the company policy.
Once selected, employees will immediately see the loan conditions to which they agree when proceeding with the request. A loan simulation feature helps employees estimate payback periods based on different parameters they set.
With “My Loan History” employees can view all of their loan programs that have been approved and are either in process of being paid, or have already been fully paid back in the past.
A quick summary view informs them about each loan type, loan amount and outstanding balance. Access to the details of each loan provides data on the dates and amounts of paid installments and interests.
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