Why invest in Employment Model loans?
FINT has partnered with companies to provide affordable credit to their employees. These companies aim to improve the welfare of their employees with access to quick loans for their personal needs like rent, home improvement, utility, medical bills, school fees and others.
Employees can borrow a certain percentage of their salary to pay back principal and interest monthly. With a dedicated dashboard, the HR personnel makes the necessary repayment deductions and remits to FINT on behalf of the borrower.
What are the risks?
The risks associated with this investment class are non-repayment by borrower and loss of employment. These risks have been mitigated based on the direct partnership with the employer, the loan repayment is therefore deducted before the employee gets their salary.
For loss of job, employment loans are covered by Old Mutual Insurance against loss of job, loss of life and critical illness.