Moving into SAVIi Asia, Uploan PH continues to partner with businesses and offer payday loans to employees at manageable interest rates.
In a virtual press conference held recently, SAVIi Asia outlines the services it offers with the aim of providing employees with financial empowerment and education.
“Employee well-being is threatened by the increased financial demands of the pandemic,” said Liam Grealish, CEO and Founder of SAVii. “We are a platform that provides financial services to employees that other formal financial institutions are unable to provide.”
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As a start-up created in 2017, SAVIi Asia saw the need to provide employees, without prior access to formal credit, with a secure and affordable formal loan solution. It will also hopefully steer them away from loan sharks or online lending platforms that humiliate or threaten borrowers for outstanding or unpaid balances.
According to a SAVii survey of 10,000 employees, 90% of working Filipinos prefer to access financial products through payroll deduction. From 18% a few years ago, the number of employees who had access to its financial products, with offers to pay payroll deductions, rose to 40%.
Conditions, interest rates
SAVii offers risk-based pricing with personalized credit options based on employee seniority (one month salary advance, or choice of 3, 6, 12, 24, 36, 48 and 60 months Employees who are already three months in the company can already avail of a loan whose interest rate can go down to 0.5% plus a transaction fee of 1%.
Employers will not take any responsibility as the process is managed by the SAVIi platform. To ensure that employees can manage their loans, SAVIi’s offerings are designed not to exceed 25% of the employee’s debt-to-income (DTI) ratio and repayments are deducted from salary.
SAVii said that in 2017 only 3% of all active loans in the Philippines were originated by banks. Employees obtain loans from individual lenders in the workplace. Unstructured and unacceptably high interest rates caused more problems for borrowers, pushing employees further into debt.