WEC Group and the Jubilee Tower Credit Union have partnered up to create a brand new Employee Benefit Loan scheme (EBL) that's the first of its kind in the UK.
The partnership gives employees an alternative way to borrow money, and the chance to switch current high interest loans and cut debt. EBL encourages responsible borrowing and affordable repayments.
A maximum of 10% of an employee's annual salary loan value can be applied for, then 20% of that maximum for every year of service will be the borrowing limit.
Nathan Cross, 25, is one of more than 20 workers at WEC who have already applied. He has used the £1,200 he borrowed to pay off an expensive credit card debt he ran up last Christmas.
Mr Cross earns £17,000 a year, including plenty of overtime. With two children to provide for and a partner who is a full-time student there is little left for extras. He said: "I didn't know how I was ever going to pay it off. Now we know we can have a good Christmas this year."
The scheme is the brainchild of WEC Group Commercial Director, Wayne Wild. He said: "I was looking at what employee benefits we already have in place, such as our childcare vouchers and cycle to work scheme and started to investigate what else we could put into place.
"One of the biggest challenges facing everyone at this time is debt, so I began doing some research and came up with the idea that we as a company could lend our employees money. We think it will have real benefits for WEC workers, especially those who have worked here for a long time. The longer their service, the more they can borrow."
Credit cards on average charge around 20% interest per year, whereas EBL only incurs a 10% admin fee for each period year of borrowing with a fixed repayment plan. Alongside repayments, a minimum savings payment of £2 per week or £10 a month will be paid alongside payments due.
WEC Group boast a number of employee benefit schemes. These include; Childcare vouchers as a way for working parents to make great savings on child care, the cycle to work scheme as a way of promoting a healthy lifestyle and reducing environmental pollution, and the refer a friend scheme which offers money rewards to employees that referred a friend who filled a job vacancy.
If you would like more information on Employee Benefit Loans, please contact us today.