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Just just How small-dollar loan programs could be a big advantage for workers (and their employers)

Just just How small-dollar loan programs could be a big advantage for workers (and their employers)

Article Features

A fast credit program that actually works

Users span the income gamut

As system grows, loans smaller, rates of interest lower

Financial counseling is amongst the services that are many by Minnesota’s largest nonprofit, Lutheran personal provider (LSS), and so the organization’s own recruiting (HR) staff are always in search of methods to help their very own workers’ monetary capacity. If they learned about TrueConnect, an application enabling companies to provide access that is quick credit for their workers, a lamp went on.

“We understand from our counseling that is financial work town that there’s this significance of use of credit. TrueConnect ended up being a means we’re able to begin to fill that space for the very own workers,” said Kristine Thell, accounting manager at LSS.

Year TrueConnect allows LSS employees to take out loans of $1,000–$3,000 that have an APR 1 of 24.99 percent and a repayment period of one. The loans are funded by St. Paul-based Sunrise Banks and never carry any risk that is financial the company. Qualifying for a TrueConnect loan is easy. Credit rating demands, which is often a large barrier that is financial people who have less-than-stellar credit histories, aren’t applied; alternatively, workers automatically qualify after employed by their manager for the certain duration of the time.Read More