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How Corporates Can Choose the Right Partner for Salary Advances
Salary advance models have gained significant attention recently, especially due to concerns over high interest rates charged by some providers. As corporates explore options to offer salary advances as an employee benefit, it is essential to choose the right partner who genuinely prioritizes employee financial wellness by ensuring transparency, affordability, and seamless integration.
At Refyne, we take this opportunity to highlight our business model and how it creates a win-win situation for both employees and employers.
Why Refyne’s Salary-on-Demand Model Stands Out
Refyne partners with corporates to offer our flagship “salary-on-demand” product to all employees, providing them with instant access to their earned wages without exorbitant interest rates. Unlike many Direct-to-Consumer (D2C) lenders, we prioritize inclusivity and financial well-being over profit maximization.
Seamless Integration with Employer Systems
Our model is designed to work in sync with corporate payroll systems. We integrate directly with the employer’s HRMS, ensuring that repayment occurs via salary deductions at source. This process benefits both employees and employers in multiple ways:
1. Lower Risk, Lower Costs: Since repayments are directly deducted from salaries, the risk of default is minimized. This allows us to offer significantly lower interest rates compared to the D2C players.
2. Financial Wellness for All Employees: With Digital Financial Services (DFS) technology, Refyne enables access to salary advances even for NTC (New-to-Credit) users and employees with low credit scores—something traditional D2C lenders avoid.
3. Employer Involvement Ensures Compliance: Employers play an active role in managing the program, ensuring better financial discipline among employees.
RBI-Validated Model & Regulatory Compliance
Refyne’s approach has received validation from the RBI, specifically in Q10 of the Digital Lending Guidelines (DLG) FAQs, reinforcing that our method is transparent, sustainable, compliant, and beneficial to all stakeholders.
Cost-Effectiveness: 50% Lower APRs Than D2C Lenders
Due to our low Non-Performing Assets (NPA) of ~2% annualized, we are able to pass on cost savings to employees. Our Annual Percentage Rates (APRs) are at least 50% lower than traditional D2C lenders, who need to charge higher interest rates to compensate for their high NPAs due to reliance on direct collections.
Why Employers Should Choose Refyne
Most D2C lenders focus only on high-credit-score customers, leaving a significant portion of employees underserved. If companies truly want a transparent and an inclusive financial wellness solution, Refyne’s DFS-backed salary-on-demand service is the only comprehensive option that benefits all employees, regardless of their credit history.
Conclusion
For corporates looking to implement a holistic employee financial wellness benefit, it’s essential to choose a partner that prioritizes transparency, affordability, compliance, and accessibility. Refyne is that partner. Our cost effective, employer-integrated approach ensures that all employees have fair access to credit while keeping repayment risk minimal.
If you're considering offering salary advances as a benefit, Refyne ensures the best outcomes for your workforce while maintaining financial sustainability.
