Employee Loans as Job Benefits

Our responsibilities pile up the moment we reach adulthood. We use much of  our adolescent life to prepare for these responsibilities.

We go to school, we hone our skills and finally we graduate. Sadly, ordinary employees nowadays still have a lot of burdens on their shoulders. Bills are piling up and they could no longer get the comfort they prepared and battled for.

Fortunately, employee loans are now within reach. However, availing it is still a high risk- high reward situation. TrueConnect is a short term loan agreement proposed in Employee Loan Solutions. This will allow employees to get loans of $1,000 to $3,000.

With it’s program on the work, several employees are hoping that this is executed for the betterment of people and not to bring them down altogether.

KEY TAKEAWAYS:

• An estimated 12 million Americans use payday loans, borrowing tens of billions of dollars annually.
• Employee Loan Solutions’ program, called TrueConnect, enables workers at participating employers to apply online and get loans of $1,000 to $3,000. The loans are approved or denied almost instantly and are available even to borrowers with terrible credit.
• Employee Loan Solutions structured its products so that they shouldn’t be affected by the new rules, which would apply to loans with interest rates of 36 percent or higher or that must be repaid in less than two months. All loans arranged by Employee Loan Solutions charge an annual rate of 24.9 percent and can be repaid over the course of a year.

Many workers live paycheck to paycheck and sometimes turn to payday lenders to get by.

The loans have drawn the attention of consumer advocacy groups and the federal Consumer Financial Protection Bureau, which have called payday and other high-interest loans debt traps. The CFPB this month released proposed rules that would rein in the lenders, requiring more underwriting to ensure that borrowers don’t stay in debt for months at a time.

Original Source: http://www.detroitnews.com/story/business/2016/07/05/employee-loans-start-ups/86724756/