Public Sector Employer Loans to Employees

Public Sector Employer Loans to Employees

Firstly, it’s vitally important for us to establish exactly what type of loans we’re referencing here, and the answer is thus - we’re detailing GettaSub’s unique financial employee benefit program that enables a public sector employer to offer their employees access to short-term finance (30-60 days) via salary-advance employer loans to employees.

With GettaSub, a public sector employer can, at no risk, free of charge and without any possibility of a negative effect on their credit score, offer their employees wage-advance loans as a valuable employee benefit. GettaSub’s systems slot in seamlessly with the employer’s payroll system for salary deductions - with zero impact on the company cash-flow.

So, for the purposes of explanation, let’s use a theoretical (but very common real-life) scenario. Our employee, employed by a public sector organisation enabled with GettaSub’s employer loans to employee’s program, is experiencing mid-month financial difficulties. Our employee is far from alone, over 53% of the UK’s population require short-term finance to cover their monthly living costs.

Our employee’s monthly budget has been impacted by an unforeseen and unexpected cost which has rendered their monthly work travel allowance insufficient to the tune of £250. Payday is a few weeks away, so our employee has an issue that needs to be swiftly resolved. Now, under different circumstances, our employee would be faced with a difficult, stress-inducing, potentially costly scenario that could negatively impact various aspects of their life, including work-performance.  

However, our employee can take advantage of their public sector employer’s GettaSub facility. That being the case, our troubled employee (regardless of their personal credit score) can immediately apply for a £250 wage-advance loan, either through or directly through GettaSub’s app. In order to actively discourage long-term debt and as a committed responsible lender, GettaSub caps all loans at a maximum of 25% of the employee’s monthly salary. The loan would come at the incredibly low fixed interest rate of just 5% per month (79.58% APR representative). Once originally approved (approval is only required on an employee’s first wage-advance application – “once approved, always approved”), our employee would receive the funds within 24 hours, either directly into their bank account, their e-wallet, or through an ATM withdrawal via GettaSub’s app.

The loan of £250 secured, our employee now has the funds required to ensure travel to work for the remainder of the month. They have ensured the loan with no hidden costs and no late payment fees. The loan has been secured at GettaSub’s fixed interest rate of 5% per month, the interest on a typical GettaSub £250 loan is just £12.50 (£0.41p per day calculated over one month – 30 days). The full loan pay back amount will be deducted directly from our employee’s salary at the end of the following month.

Perhaps most importantly in this scenario, our employee now has peace of mind. This should never be underestimated. According to a recent Financial Wellbeing Report based on a survey of 1817 employees of various levels, conducted online via the YouGov Panel, 46% of employees admitted to being worried about their financial health.…and 1 in 4 employees reported that money worries affected their ability to do their job. Worrying statistics for any employer….and indeed, there is no panacea for all life’s concerns, but GettaSub can at least provide a sensible and effective remedy for employees with short-term financial concerns.

GettaSub ensures that public sector employer loans to employees becomes a simple, logical, effective, stress-free, zero risk process for both employer and employee. There are no losers here, it is simply a win-win situation for all concerned.

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