Neyber, a provider of financial employee benefits, has launched a product range that it believes will provide employees with an alternative to pay day loans and other high-risk providers of credit. The launch follows a year-long partnership with Police Mutual, during which Neyber lent £8 million to serving police officers and civilian police staff.
Neyber plans to lend over £100 million to UK employees over the course of 2016 via tie-ups with employers. The company’s model enables employees to borrow in the workplace at more attractive rates of interest than those traditionally available on the high street or from alternative lenders.
The benefit is entirely free for participating employers with loan repayments deducted from an employer’s payroll. Employees borrowing from the benefit provider can borrow between £500 and £25,000; they can also cut their outgoings by consolidating existing debts in a single loan at a relatively low interest rate of 4.9% APR. Neyber calculates that employees using its loans service save 20% on monthly debt repayments. Savers will also get a better rate than those available from traditional providers, and will offer payroll deducted Neyber ISAs this year.
Neyber co-founder Monica Kalia said:
‘Our research showed that over half (53%) of workers would value access to affordable loans and savings from their employer. Financial wellbeing has been quickly gaining recognition amongst HR professionals and the interest in our proposition amongst employers has been immense.’