Corporate employees can now get loans at their workplace, without having to leave their seats.
Borrowing money has not been easier, especially during emergency. While banks and other financial service providers may claim to have the quickest loan-disbursement process, the procedure actually takes a significant amount of time. While the lenders focus on ensuring that all the details and formalities are fulfilled properly before lending the amount, from the perspective of a borrower the long process to avail the loan is an obstacle.
However, now, borrowing money will be easier for employees during times of emergency. FinMomenta, a digital lending platform has introduced corporate HR loans for employees of corporate firms. The digital platform will allow employees to borrow money at preferential rates and ensure instant and quick approval. The employees working in mid-sized corporates do not need to take time off work to visit banks to apply for loans and follow up for approval.
The company has tied up with corporates and provides a link to the employees within the corporates’ intranet portal. The loan-seeking employees can use the link to log in and apply for a loan sitting in their office itself. The remaining task is taken care of by FinMomenta. The repayment of the loan is done through EMI. The employer deducts the EMI before disbursing the salary to the employees, who have availed the loan.
The employees can avail corporate HR loans in the range of Rs 50,000 to Rs 5,00,000 with an interest rate of 11.50 per cent to 25 per cent per annum with a six months to three-year loan tenure.
Currently, this loan facility is available in 50 cities in India.
Speaking on this initiative, COO and co-founder of FinMomenta, Naveen Madgula said that “Digital lending is a paradigm shift for the entire financial industry. Over the years, it has proved to be a streamlined lending process. We are honoured to be the first ones in the industry to introduce corporate HR loans, which have the potential for huge immediate growth in the digital lending space. This will be a big value addition to the corporates tying up with us”.
The facility will provide a big relief to the employees working in corporates, as the whole loan granting process can be done from their workstations itself, without any need to take time off from office to visit the banks. It will also increase employee satisfaction and loyalty.