Everything you need to know about salary loans
You’ve probably heard of salary loans, whether from the government or from private lenders. But what are they? Who can apply and how does it work?
Simply put, salary loans are short-term loans that are based on an employee’s monthly salary.
Here are everything you need to know about salary loans, whether it's about interest rates or loan terms.
1. They are unsecured, and companies have no liability
Salary loans are unsecured, meaning that lenders won’t require any form of collateral from borrowers. Instead, lenders will base loan approvals on the gross monthly income.
In addition, a company will have no liability once an employee resigns with an outstanding salary loan. The remaining loan amount will be deducted from the employee’s backpay.
2. They have flexible terms
As salary loans were made to help employees tide over emergency situations, salary loans offer flexible terms, sometimes with maximum loan terms of up to 12 months.
These loans also allow for flexibility in terms of repayment, such as bi-monthly installments.
3. Employees can loan small amounts
Emergencies come in big and small amounts. With a salary loan, your employees can get a financial boost whenever they need it, whether it’s for something as simple as a gadget repair or as urgent and heavy as a medical procedure.
4. Loan disbursement in as fast as 24 hours
Given that salary loans are primarily meant for emergency use, borrowers do not need to wait for a number of days just for their loan to be disbursed.
Nowadays, salary loans can be credited in a borrower’s preferred bank account or e-wallet in just a snap.
5. Get one online -- without the need for too much paperwork
Technological advances have allowed for financial transactions to be done seamlessly online, including salary loans. Lenders have taken advantage of a high smartphone usage in the country to offer salary loans online or through their respective apps, with less amount of paperwork and IDs being required.
All of these benefits can be enjoyed once you apply for an UnaPay Salary Loan. Partner companies can avail of flexible interest rates with maximum loan terms of 12 months and a maximum loan amount of P100,000.
Interested? Head over to https://unapay.com.ph/business/company if you want to be a partner company, or https://unapay.com.ph/business/salary_loan if you are an employee of an existing partner company.