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5 Financial Benefits For Employees

Table of contents:

5 types of employee benefits
FAQs on company benefits

In the modern employment landscape, financial and emotional wellness has become a priority in most workplaces. One of the ways to go about it is by offering company benefits to employees

to empower the workforce and minimise stress. In fact, management and HR teams must take these practices seriously to retain talented employees.

These company benefits play a vital role when employees are seeking new growth opportunities. They also help reduce employee turnover, promote better physical and mental health, and improve productivity.

While there are many facets to these types of compensations, financial benefits for employees are one of the most popular. Finance-related company benefits go beyond the statutory benefits related to gratuity or EPF and are offered by most multinational corporations and even growth-seeking start-ups.

Employees can leverage these financial benefits to manage money wisely in the short and long term and get access to credit when they need it. However, some companies shy away from them due to the associated employee benefits expenses that come their way. After all, it costs money not only to get started, but also to maintain such employee programs.

That being said, read on to know about 5 types of employee benefits provided by most organisations and how your company can bring down employee benefits expenses.

5 types of employee benefits

1. Productivity-linked wage incentives

As per the National Commission of Labour, wage incentives provide added motivation for employees who have achieved a specific target and gone beyond. Such perks reward hard-working and ambitious employees, encouraging them to be more innovative and productive at the workplace, thereby increasing their efficiency. These incentives are mostly found in departments where immediate results can be measured.

For example, most companies implement such programs for the sales department of their organisation. Hence, apart from the base salary, the worker also gets a certain added amount for every ‘n’ number of sales.

There are several efficient wage plans to provide such financial benefits for employees. For instance, the Halsey Plan ensures that every worker gets a minimum wage along with a bonus if the work is completed before the stipulated time. The bonus can be set to any proportion, commonly 50% of the time that is saved by the employee multiplied by the per-hour rate.

2. Holiday bonuses

Holiday bonuses are provided to top-tier professionals and entry-level employees alike and vary depending on their position in the company. Bonuses are commonly given once a year and most companies choose festivals or the holiday season since these are the times when there is a significant outflow of money.

The Payment of Bonus Act, 1965 has made it mandatory for establishments employing 20 or more workers to provide a bonus of 8.33% as a minimum for those earning ₹10,000 or less as their monthly income. There is no doubt that getting such financial benefits from a company is important to employees.

3. Stock options

This company benefit allows employees to buy company shares at a lower price than the market price. Purchasing company stocks at a discounted rate allows employees to sell them when needed or play a proactive role in company ownership and management.

Reputed companies including Infosys, Microsoft and Amazon grant employee stock options. Such a benefit can spur employees to boost their productivity and put in their best efforts as it can be a lucrative option.

4. Retirement benefits

Financial security after retirement is of utmost importance to most employees. Retirement-related company benefits to employees can include contributions made towards the PF account as well as retirement gratuity. Some companies may also offer employees to encash their leaves.

All these benefits add to the employee’s kitty of funds to finance their golden years and address their responsibilities to dependants.

5. Paid leaves

This fringe benefit enables employees to take leaves for a certain duration without any loss in pay. This type of company benefit eases the pressure on employees, allowing them to devote time to other aspects of life and maintain work-life balance.

Employees can choose to get paid time off for family vacations, R&R activities or even to address urgent personal matters. This way, the workforce can allot time to important life events without the fear of a pay cut.

These company benefits are just a small snapshot of the various ways in which firms, both large and small, can support their employees. Some of the others include health insurance, paid daycare or childcare, life insurance, free access to health services like gyms, availability of free food or tiffin services and more.

To offer holistic financial benefits to employees, partner with Fibe. We offer financial wellness programs that are easy to integrate and completely customisable. Trusted by over 800 corporates, our programs can help you deliver a suite of financial benefits for employees. They include access to easy credit be it for medical reasons, upskilling or with salary advances, personal loans and more.

The best part? You don’t have to worry about high employee benefits expenses as you incur no cost in offering these company benefits to your workforce! Get in touch with us to tailor our program to your organisation’s needs.

FAQs on company benefits

Why are financial benefits important?

Financial benefits for employees help increase productivity while equipping them with the tools to minimise financial stress.

What are the examples of financial benefits for employees?

Health insurance cover
Holiday bonus
Retirement plans
Education financing
Paid leaves
Wage incentives
Salary Advance

What are the various types of employee financial benefits?

Disability insurance
Medical cover
Retirement plans
Life insurance
Salary Advance Facilities

How important are these benefits to employees?

Providing benefits ensures employees that the firm is invested not only in their financial wellness, but also in their future. This helps any organisation retain its workforce and attract new talent.

How do employee benefits affect the organisation?

With better benefits, a company can recruit talented professionals. This can help any organisation decrease its attrition rate while enhancing retention through employee satisfaction and increasing productivity.

What are employee benefits?

Any benefit, compensation, or perk that an employee can get access to from a company is called an employee benefit. Such benefits are over and above the wages an employee earns.

What are the four types of employee benefits?

There are many types of company benefits that employees can access. The top 4 that most employees and employers prefer include:

Health and life insurance
Pension plans
Paid time off
Wellness programs

What is the most common type of employee benefit?

Health insurance is one of the most common types of employee benefits that companies offer in India.

What are some examples of employee benefits?

Here are some examples of employee benefits offered by companies:

Flexible work timings or remote work options
Health-related wellness programs
Assistance with education fees or loan repayment
Paid time off
Paid maternity and paternity leave
Childcare reimbursement
Medical insurance
Retirement benefits

How much do benefits cost a company?

The cost of offering non-financial and financial benefits for employees depends on what the company chooses to offer. For instance, health insurance can vary from ₹500 to ₹25,000 per employee. By tying up with Fibe, you can offer a range of financial perks without any employee benefits expenses.

The True Business Cost of Employees’ Financial Worries

With the advent of globalization, the employment domain has been evolving. In India, the rise of the middle class has changed the dynamics of life for all. The thing which has not changed is stress due to work.

Stress pertaining to the workplace has been a constant companion of professionals. It is disguised in many forms, haunting employees throughout their career. The most lethal form is financial stress. The stress from the ever-growing pile of documents on your desk will evaporate when it is out of sight. The stress originating from deadlines will also vanish when you hand in the task, even if you are late. Financial stress, however is the one to look out for.

Assessing your own financial condition and evaluating your own ability to manage expenses while keeping up with saving plans and investment decisions is an enormous task. Add the responsibilities of managing a family and the stress increases exponentially. Hence, the more the weight on your shoulders, the more prone you are to being burdened and the more prolonged the stress will be. Academicians have concluded that employees’ financial worries begin from the time they join the race for employment and last even after retirement, and therefore, financial stress literally vows “till death do us apart” and remains faithful till you breathe your last. It infects you from inside out.

Employers should be equally concerned, since financially stressed employees add both direct and indirect costs to employers. For example, It has been reported that an increasing number of employees take up detrimental habits like smoking, drinking alcohol, overeating and drug addiction in an effort to cope with the building stress. There comes a point where the effects of indulging in such activities start affecting an individual’s work. Unhealthy or stressed employees are not productive and cost employers money. The digits on the medical bill increase proportionally to the financial worries and are often regarded as “hidden” loss to businesses.

Also read – Financial Wellness: Why Should You Care About It?

Most businesses would consider alternatives to tackle productivity problems. One of them may be hiring new talent fresh out of college and free of any financial stress. The efficiency of this idea is so low that it may not even be considered a solution. Recruiting and hiring have been costly affairs since time immemorial. The cost of hiring new talent becomes twofold when the company offers training as well. In addition to this, there is also the issue of productivity loss. The new hire will take a while to generate the same productivity and profits which the existing employees generated. Therefore, the true business cost of employees’ financial worries is exorbitant and often unaccountable due to various hidden costs.

Another alternative is that businesses invest in educating the employees to achieve financial wellness. Instilling financial literacy in professionals has been deemed inadequate when it comes to handling financial stress. Therefore, it has become a serious issue which has ever increasing dire consequences for both businesses and individuals.

The only plausible solution to tackle financial duress to employees is for employers to lend a direct hand. In addition to conventional health insurance provisions, the business can set up a retirement fund to ease some of the financial burdens of existing employees. Corporates could also assist in referring employees services which could help them configure the details for taking out loans. The battle against financial worries demands the cooperation of both the employee and the employer.

How Secure are Instant Loan Portals

Instant loans are convenient. But your data and money matter more than speed. That is why checking the safety of instant loan portals is a must before you apply. Secure instant loan portals should protect your personal details, follow lending rules and keep the process transparent.

Read on to learn how secure are instant loan portals in real life, what to verify before you share your details and how to avoid risky apps.

How the Digital Lending Ecosystem Works??

A digital lending platform is an online system that helps you discover a loan, submit details, complete checks and receive the money. Some platforms are run by regulated lenders. Others may act as partners or service providers for NBFCs and banks. This is why you should always check who the actual lender is. A genuine platform clearly shows the lender’s name, its registration details and how your data is handled.

Why Security Matters in Instant Loan Portals

When you apply through instant loan portals, you share more than just your basic details. You are handing over your PAN, Aadhaar, bank information and proof of income. That is a lot of personal data. If the portal is not secure, this information can be misused. In some cases, it can even lead to a data breach or unwanted follow-ups later.

This is why choosing secure instant loan portals is so important. A trusted platform protects your details, follows clear rules and handles your data with care. It even helps you avoid fraud, keeps your identity safe and lets you focus on borrowing without any added stress.

Key Factors to Verify Before Using a Loan Portal

Always go through these steps before trusting instant loan portals with your details:

Step 1: Check if the lender is legitimate in India
Only regulated entities can lend. Look for the lender’s full legal name and whether it is a bank or an RBI-registered NBFC. If the portal is hiding the lender’s name, treat it as a red flag.

Step 2: Verify address and contact details
A genuine lender will have clear contact information, such as:

Lender name and company details
Customer support number
Official email address
Physical office address

If you cannot find these, do not proceed.

Step 3: Check website and app security
When you use instant loan portals on a browser, look for https in the URL and the lock icon. This signals encryption. Also, check if there is a clear privacy policy and terms page. A vague policy usually means weak accountability.

Step 4: Review permissions before you allow access
KYC documents are normal. But some permissions are not. If an app asks for access to your contacts, gallery, call logs or messages, pause. You should only share what is required for lending checks.

Step 5: Look for two-factor authentication and verification steps
Secure instant loan portals add extra protection during login and approval. Two-factor authentication (2FA) is one such feature. It usually means you confirm access through an OTP or another verification step. This reduces the risk of someone else using your account.

Step 6: Read reviews smartly
Do not look only at star ratings. Read recent reviews and focus on patterns. Are people complaining about hidden charges, aggressive calls or unclear terms? If yes, it is safer to choose another platform.

How to Spot Common Red Flags or Warning Signs?

If you notice any of these, do not continue with the application.

No clear lender name or NBFC details shown
Promises of guaranteed approval with no checks
Very low-interest offers with no eligibility criteria
Pressure to act fast or threats during follow-up
App asking for contacts, gallery, call logs or SMS access
No privacy policy or a policy that says your data can be shared widely
Unclear fees or charges are shown only at the final step
Complaints about harassment or misuse of data

How Real and Trusted Instant Loan Portals Operate?

Real and trusted instant loan portals keep things clear and predictable. You always know what you are signing up for. Here is how they usually work:

Transparent lender identity: You can see who is lending and under what rules
Clear disclosures: Fees, interest rate and repayment terms are shown upfront
Secure data handling: Encryption is used and the privacy policy is easy to understand
Controlled permissions: Only necessary data is asked for
Strong verification: OTP checks and two-factor authentication (2FA) are used
Responsible collections: Follow-ups are professional and within legal limits

The Fibe app follows a PCI DSS app-based journey and has ISO/IEC 27001 certification to protect customer information. The loan process is also quick and requires minimal documentation. Just download the Fibe Personal Loan App or apply through the website to access safe and secure personal loans up to ₹10 lakhs!

FAQs on How Secure are Instant Loan Portals

Can I trust low-interest, no doc loan offers?

If a portal promises very low interest with no documentation, be careful. It may not be genuine. Real lenders still do basic checks. Always verify the lender’s identity, fees and terms before you accept any offer.

What kind of permissions should a loan app never ask for?

A loan app should not ask for your contacts, gallery, call logs, SMS or social media access. These are not required for normal lending checks. If an app demands these permissions, avoid it.

What to check after receiving the loan offer?

Before you accept, check the interest rate, total repayment amount, processing fees and EMI schedule. Also, confirm the lender’s name and customer support details. If anything looks unclear, do not proceed.

How to verify if a lender is real or legitimate in India?

Check if the lender is a regulated bank or an RBI-registered NBFC. A genuine portal will display the lender’s name, registration details and official contact information.

Why Financial Wellness Should Be An Essential Part of Employee Wellness

Before discussing the need of financial wellness programs in the workplace, it is crucial to understand what financial wellness is. Many employees, especially at the start of their career, tend to struggle to curtail their expenses, and end up trapped in what is called paycheck-to-paycheck living. The result? Scenarios where the employee’s monthly outflow of cash is almost as much as the monthly inflow, leaving little room for savings or emergency funds. Financial wellness implies a situation where an employee is living well within his or her means and is able to keep an emergency fund to allow for stressful situations by taking little or no debt. It’s financial independence, in short.

With increasing general awareness about different investment products and management of personal finances, it has become somewhat easier for individuals to achieve their long term financial goals. Most individuals today understand the need to start saving early, thereby reducing the number of money related stressful situations in the future.

But in today’s era, financial wellness is not just a concern for employees but also for their employers. Why?

When employees are experiencing financial hardships, they’re very likely to bring that stress into the workplace, and come into office worried and unable to concentrate.
Even when they’re working the stress shows up in their work and their health, driving down productivity and increasing health costs – reason enough for employers to consider offering advice in this area.
Organisations with the foresight to acknowledge this issue are proactively introducing their employees to financial wellness programs and money management tools as a part of their work culture.
Being invested in an employee’s financial wellness also ensures that the employee remains loyal and is hitched with you for the long term thus, reducing employee turnover.

The Society for Human Resource Management’s (SHRM’s) Employee Benefits Survey conducted earlier this year has revealed more organisations to be offering financial advice and financial wellness programs as compared to five years ago.

Additionally, gone are the days when simplistic retirement benefits and insurance covers were adequate to attract and retain talent. For today’s generation, it is comprehensive compensation and benefits plans which include holistic financial wellness programs that are closing the gap.
Check out the 2018 Employee Financial Wellness Survey by PricewaterhouseCoopers (PwC) for more insight into the why’s and what’s on financial wellness for employees.

It is crucial, however, for organisations to be cautious of becoming over-invested and to not make the mistake of pre-selecting financial products or services for employees. Every employee and type of workforce can have different needs, both for themselves and their families. Employees could be on different places on the spectrum of financial wellness. It’s important to offer them options and not a sales pitch, allowing them to exercise discretion and autonomy to the extent possible.

With Zero-cost EMIs, Shopping has never been easier!

Consumerism is at its peak, globally. Sales are no longer restricted to the festive seasons. With e-commerce portals announcing significant discounts almost all the time, turning away is not an option. Print and digital media are flooded with the best ever online sales, and almost everything you want is cheaper than ever. From clothing to accessories and from electronics to groceries, you ask for it, and they have discounted it. You just cannot ignore it.

We all browse to hunt down the best deal. However, do you end up leaving items in the cart or remove items during checkout because of a cash crunch? Shopping needs a reasonable budget, and sometimes we give in to our desires, affecting our monthly budget. Whatever the reason behind your money hues be, there is one feasible borrowing option available 24*7, and that is EarlySalary’s collateral free instant cash loan.

Any salaried individual can avail an online personal loan through Fibe app. Zero cost EMIs allow individuals to buy a host of products by making nominal changes to their budget. Given the possibility of the higher inflation rate and unexpected expenditures, paying in EMIs is a smarter choice as this way you don’t block cash.

Unique Features of EarlySalary’s Instant Cash Loans

Easy Application and Disbursal

Sales on your favourite item are available only for a small window, which is where quick loans come handy as they are fast in disbursal. You have to upload your address and identity proof with the bank statement of the last three months on the app. The loan will be disbursed within 8 to 24 hours of your application. The process is entirely online and hassle-free.

2.Spending Freedom

Technology is ever-changing, and given our growing dependence on it, the need to switch and upgrade is imperative. From getting brand new kitchen appliances for your mother or wife to buying new gadgets for yourself and to gifting your loved ones, an instant cash loan can be used for any purpose.

3.No Collateral required A common man may not have a property but certainly has desires. This point makes a cash loan an ideal option for those who do not have a security. There is no need to put any of your assets on a lien or submit any paperwork.

4.Zero-Cost EMIs

An instant cash loan is an affordable short-term loan. With EarlySalary, you can shop for your favourite product on Amazon and pay in 3 EMI at zero extra cost. You can also repay in 6 EMIs with a nominal charge of Rs 500. What’s even better is that all EarlySalary users can avail exclusive offers in Amazon sales.

3 Reasons to Shop with Fibe’s Cash Advance

Ease of Buying

Online shopping has never been easier. EarlySalary’s tie-ups with e-commerce giant Amazon, retail giant Future group’s BigBazaar, etc., have made online shopping more convenient. Once you have an approved credit limit, you can get it fully or partially transferred to your Amazon pay within the EarlySalary app.

Similarly, EarlySalary transfers credit to your Future pay wallet. This credit can be used to shop at any Big Bazaar store. You can repay in 3 EMIs at zero extra cost.

2. Attractive Offers

Online offers are great but what if you get exclusive discounts too? All EarlySalary users get additional offers such as cash back, flat off, up to off, coupons, etc. when they shop online.

3.Choice

Cash crunch may restrict the choices you have and force you to settle for less. However, with EarlySalary’s tie-ups with major retailers like BigBazar, you get a wide range of options to choose from. You can shop across brands at the comfort of your home, office or cab online or through apps.
So be an intelligent shopper, save more with zero-cost EMIs and shop even more. The next time your cart is full, but the wallet is not, get a SalaryAdvance from Fibe and improve your lifestyle.

App-based Salary Advances – The new way to approach your end-of-month blues

Payday is great! You’re all pumped up with the replenished account balance and ready to celebrate with gourmet meals, shopping, a new Marvel movie, and more. It’s finally that time when you can move items from the wishlist to the cart and tick items in your bucket list. Pause.

But, it’s also time to face some facts. Well, you may not want to, but the celebration may not last until the next payday despite conscious budgeting. As we approach the month-end, a sinking feeling outstrips your joy and slams you with the bill you forgot to account for. No doubt it hits hard, but this may just be the beginning of the month-end money crunch if a financial emergency crops up. After all, misfortunes never come alone. Your paltry balance after overspending may pinch you with fuel refills, medical emergency, last-minute travel plans, repairs, etc.

Let’s weigh your options

Beg, Borrow, Liquidate: Undoubtedly, borrowing is the easiest option but may also be the most embarrassing. What’s worse is that your potential lenders, too, might be in a similar situation. You might not want to ask your parents because they have already given you a significant chunk of their savings for your top-notch MBA degree (or similar). This is fair because it might only burden them more. Liquidation may not be viable if the bears dominate the market.
Ask the Employer: Some organizations have a policy for an early paycheck. However, this is subject to several conditions and one may not be even eligible for this during the probation period. Also, it depends on your designation and purpose.
Personal Loan/Credit Card: Rigid repayment terms and payment failures may reduce your credit score. This negatively impacts your future borrowing capacity. Another challenge is the requirement of a high credit score. None of us have a decent credit score at the outset of our professional career. You may not be eligible for a personal loan or may have an insufficient and low credit limit.

Are you already on the horns of a dilemma? Don’t fret, this isn’t a Hobson’s choice!

What should you choose?

There is one hassle-free option that ranks better than all the options above and can allay your month-end money problems in a day. The best option available to all salaried individuals is a short-term, collateral-free instant salary advance. This option will save you from the embarrassment of asking friends and relatives and also the exorbitantly high interest rate on other available options. Salary advance apps like Fibe offer the benefits of quick loans, available 24*7 through the Fibe app. It can be availed by all salaried professionals even with a low credit score.

Why only EarlySalary’s SalaryAdvance?

⇒ Low-interest rate

A Salary Advance is a cost-effective solution to cover your month-end financial problems. In fact, there are no hidden charges, you’ll only be charged for the number of days you use the money. You can prepay the entire amount without prepayment charges.

⇒ Flexible Repayment Terms

Fibe’s Salary Advance can be used for any purpose, and this includes your rejuvenating spa too. You can repay in easy EMIs over a period varying from one month to one year.

⇒ Zero Paperwork, Quick Disbursal

Just download the app, upload the bank statements of last 3 months, address and identity proof and voila, your application is all set for approval. EarlySalary disburses loans within 8 to 24 hours of online documentation and approval.

Don’t miss a big sale or bail out on that road-trip with your friends over the weekend and just wind-down. You deserve it. So, all you cash-strapped professionals, take an instant salary advance, ward off the end-of-month blues and stay in high spirits!

Step-by-Step: Personal Loan in Less Than 5 Minutes

Sudden expenses can come up anytime. It could be a medical bill, rent, travel booking or a simple cash shortfall before payday. In moments like these, you may wonder how can I get a loan fast or how to get instant loan without paperwork delays.

Today, digital lending makes this possible. With online loan platforms like Fibe, you can apply for a personal loan, get approval and receive funds in just a few minutes. The process is fully online, simple to use and designed for quick access to money when you need it most.

Personal Loans in 2026: What’s Changing?

Personal loans have evolved with digital lending. In 2026, borrowers prefer speed, convenience and transparency. Online loans are replacing long branch visits and paperwork-heavy processes.

Most lenders now use digital verification, instant eligibility checks and automated approvals. This shift makes it easier to understand how to apply for personal loan online and receive funds faster.

Online vs Offline: Which is the Better Way to Apply?

Factor	Online Personal Loan	Offline Personal Loan
Application process	Fully digital through app or website	Branch visit required
Time taken	Minutes	Several days
Documentation	Minimal	Extensive
Approval speed	Instant or near-instant	Slow
Convenience	Apply anytime, anywhere	Fixed working hours

How to Get a Personal Loan in Under 5 Minutes?

Follow these steps to understand how to get a personal loan online:

Step 1: Download the Fibe app or visit the website

Step 2: Enter your basic details

Step 3: Upload required documents

Step 4: Check your eligibility instantly

Step 5: Get approval and receive funds

This is one of the fastest ways to understand how to apply for personal loan without delays.

Eligibility Criteria to Get a Personal Loan in 5 Minutes

To qualify, you usually need to meet these eligibility criteria:

You must be an Indian resident
Your age should be between 19 and 55 years
You should be salaried and employed for at least 3 months
Your monthly income should meet minimum requirements
You should have an active bank account

Meeting these criteria helps you get faster approval and shows how can I get a loan fast.

Documents Required for Fast Processing

Keep these documents ready to avoid delays:

Identity proof
Address proof
Bank account details
Salary or income proof

Having documents ready makes it easier to understand how to get instant loan approval.

How Instant Personal Loan Gets Approved in Minutes?

Instant personal loans are approved quickly because lenders use digital checks. Your application is assessed using automated systems that verify identity, income and repayment behaviour in real time. This removes manual checks and speeds up decisions. That is why digital lending platforms can offer approvals in minutes instead of days.

Factors That Can Slow Approval

While instant loans are fast, some factors can slow things down:

Incomplete or incorrect details
Missing documents
Bank account verification issues
Low credit score or inconsistent income

Avoiding these helps you get funds faster.

Tips to Improve Approval Chances and Speed

Use these tips to improve approval speed:

Enter accurate details
Upload clear documents
Maintain a healthy credit profile
Avoid multiple applications at once
Ensure your bank account is active

With Fibe, you can get an Instant Personal Loan of up to ₹10 lakhs in just a few minutes. Download the Fibe Personal Loan App to enjoy quick, easy and hassle-free access to funds.

FAQs on How to Get a Personal Loan in Less Than 5 Minutes

What is the disbursement period for a personal loan?

If you are wondering, ‘How much time it takes to disburse a personal loan?’, the answer is that it varies depending on the lender you choose. Fibe takes only a few minutes to approve and disburse your loan.

Where can I borrow money in 5 minutes?

You can borrow money through digital lending platforms like Fibe. These platforms allow you to apply online, get instant approval and receive funds within minutes.

Can I apply for a personal loan online if I already have another loan?

Yes, you can apply for a personal loan online even if you already have another loan. Approval depends on your income, repayment history and overall credit profile.

Interest rates explained: Credit cards and Fibe

Millennials largely depend on credit and borrowed money, far more than the preceding generations. Weekend vacations, buying a car or even sudden shopping trips may often not fit into their monthly salary. Financial institutions have long identified this problem and come up with several alternatives depending on the amount you need to borrow, the income rate and the risk associated with lending you the money. The market has pushed credit cards, personal loans and the like to serve millennial needs – but there remains one large issue – the interest rates these institutions seem to charge.

What are interest rates and how do they work?

Interest is essential for a rental charge for borrowing money. If the risk involved in lending money is low, a low-interest rate will be charged. Individuals may borrow money for a host of reasons – from business funding to paying college tuition. Money that is borrowed can be paid back wholly in a lump sum or in instalments in a periodic manner. The interest levied is given in the form of a percentage which can be charged simply or in a compounded manner.

Take the concept of simple interest – if someone takes a loan of ₹ 30 lacs from the bank as a loan agreement in order to build a house and the interest on the loan is 15%, then the borrower will end up paying 15% of ₹ 3 lacs for each year.

Interest rate per year = 15% x ₹ 3 lacs = ₹ 45,000.

Hence for each year that you do not pay back the money, you end up spending ₹ 45,000 more interest. This explains how banking corporations make money by lending. Often, lenders prefer to charge interest in a compounded manner, which is interest on interest. This kind of interest is mostly practised on money borrowed for a short amount of time, such as money borrowed through credit cards. Sometimes, the calculation of interest through simple and compound is not too different in an extremely short time frame. However, as the lending time increases, the difference between simple and compound interest also grows. Hence people are always advised to pay off their credit card bills as fast as possible.

Interest rates on Credit Cards

Credit cards levy their interest through a standard interest rate called Annual Percentage Rate, or APR. The percentage rate depends on a number of factors, such as credit score and the bank from which you have issued the credit card. Credit cards use the APR to calculate the interest charges over a monthly period. The APR can also be used to compare the different credit and loan offers from various banks, helping you choose the best fit for yourself. The APR takes into account other charges, such as the arrangement fee. Hence sometimes, it is different from the interest rate.

Credit card interest rates can seem (and are) significantly higher. This is because interest is charged regularly on any remaining balance from a previous cycle and because the rates themselves are fairly high – often as high as 40% annually!

Interest rates on Fibe

With interest rates soaring and millennials borrowing more than they can pay back, a significant portion of India’s population is in constant debt. This naturally impacts credit scores and raises the need for a simpler method of borrowing without much interest. While personal loans seem like the perfect answer to borrow money for personal needs, they demand a strong credit score if you do not want to take that hefty loan at a larger interest rate. Instant loan app services have recognised this gap and have started giving out salary advances at a nominal interest rate. Fibe, for instance, lets you borrow up to ₹ 5 lacs charging interest only on the number of days you use the money at an interest rate as low as ₹ 7/day. The process is a lot simpler than other bank procedures, with instant approval and money transfer within hours (and sometimes minutes). The process is completely digital, where you need to upload soft copies to complete the identification process. Even the repayment process is hassle-free since money is automatically debited from your account every month.

Since the salary advance from Fibe relies on a combination of your credit score and what it calls your social worth score, young employees who have just started working and do not have a strong credit score need not worry too much.

Simply put, Fibe is the answer to your month-end cash crunch. From a Salary Advance to shopping needs, Fibe has everything covered. Don’t stop living!

The Finance Behind High Employee Engagement

By : Dhruv Anand – AVP & Head Talent Management, Netmagic Solutions

In today’s times of intense career mobility and attrition, if an organization does not give its employees enough reasons to stay, or worse, gives them reasons to leave, employees are fairly likely to move to employers who will keep them happier. While employee engagement is quantified in various methods but very limited correlation to financial performance, Employee Engagement certainly has a huge impact on the finance of any organization or business. Employee engagement, and how it is handled could differ from company to company. While a lot of organizations want to see their employees content and satisfied, some top-tier companies strive hard to keep the enthusiasm of their workers alive.

How does employee engagement affect the company finances?

Even before entering into the workforce, prospective employees have a certain vision of the place they would like to work at. The atmosphere and treatment meted out to employees plays a significant role in attracting workers. All industries are experiencing a stronger need to prioritize their workplace culture in order to retain their best talent. A disengaged and disgruntled workforce can damage the culture. Financial drainage is also seen in the form of salaries and benefits given out to these employees. Such employees are more likely to leave the company making it necessary to find replacements. This is a triple blow to time, money and productivity of the management.

An engaged workforce, on the other hand, reduces financial drainage and positively impacts the business. There is a reason why top companies like Google and Facebook focus on non-cash rewards such as flexibility, work content and a comfortable office space with activity centres. Your environment acting as an engager and a good work environment is often fundamental for employees to work without too much stress, in turn increasing their productivity and thus financial revenue.

Retaining your best people through financial benefits and compensations

In addition to the base salary, it is important to show your employees that there are other monetary benefits and rewards for them in the organization. Smart employers are aware that keeping a high quality employee comes with a high compensation and benefit package, which is worth every penny due to the superior value delivered. Financial benefits sweeten the employment contract with surprises workers wouldn’t generally expect.

It is also critical to ensure proper communication with your employees. While financial benefits are important, a homely and comfortable work environment along with recognition goes a long way in helping retain your best workers. Employees often talk about their holiday bonuses or follow their stocks closely because they have stock options. This kind of compensation also gives the workers a stronger sense of satisfaction when the company succeeds.

The role of financial literacy and financial wellness

Economic and monetary issues have become very critical for today’s employers. Millennials are spending as much time as they can at the workspace in order to pay their bills and debts for even the most basic utilities. This increasing amount of stress often ends up hampering their productivity and lowers engagement inspite of best efforts from employer. With this mounting stress and uncertainty, organizations are now playing an active role in easing the financial situations of their employees through a variety of possibilities, sometimes through the forms of rewards. This could be through food vouchers and coupons, sponsored trips with family inorder to destress during the weekend, or even movie tickets.

These factors have gone a long way in motivating employees, easing their situation and ultimately retaining them. Organizations have realised that helping their workers in turn boosts their revenue, thus making it a win-win situation.

Getting New Joinees To A Good Financial Start: The How-To Guide

With millennials’ increasing dependence on credit options in order to live their life, financial education is more critical than ever. While financial literacy has of course, a directly positive impact on employees, it also benefits employers is more ways than you may imagine. Strong financial education and better financial management skills result in employees less likely to end up with financial woes and stress – or in other words – more likely to end up as increasingly productive parts of the workforce. Lower attritions are a consequence as well if there are fewer financial hardships and fewer requests for salary advances to deal with. Financial stress can affect the workplace in many negative ways, by directly impacting productivity and causing more anxiety at the workplace.

Educating employees about their finances is also a good way to exhibit a truly people centric organisation culture – the organisation moves forward if its people move forward.

New Joinees: The Basics

Companies are often seen hiring new employees during a certain time of the year (and sometimes even throughout the year), be it through on-campus hiring, or off-campus drives.

As the business scales, manpower needs obviously increase. When a percentage of the workers retire or graduate to managerial positions, young graduate students are often recruited to fill this gap. Younger employees tend to be more enthusiastic, with stronger learning ability and are more up to date with current technology. They also have fresh ideas and newer perspectives that can bring an added value to the organisation. They also do not tend to cost the company as much.

Sometimes, employers hire a certain group of people due to their unique skill, such as a cloud computing specialist, or a web developer. Their ability to do the work in a short amount of time with great efficiency reduces the overall cost to company and increases their profits.

Thanks to the digital age, recruitments are not as tedious for the employers as they used to be. With job roles becoming more specific even at the lowest level, candidates are screened out automatically. While online recruiting is very effective, it is also important that your new hires transition into their workplace effortlessly.

The Criticality of Financial Wellness For Employees

Employees spend a third of their day at their workplace. Naturally then, it is critical that they look forward to it – and that is accomplished when the organisation is careful to cater to their needs – physically, mentally and financially. The three are often very closely connected, however, employers are often significantly responsible for financial wellness:

Funds play a very important role in their lives and a lack of them is likely cause a number of problems, including disruption of physical and mental health.
With increasing stress and workload at workplaces, employers are now taking the financial wellness of their employees more seriously. The average worker today, before even starting their job, typically brings with them significant debt in terms of college loans and personal loans that need to be paid off.

Organisations have fortunately begun taking an active interest in improving the everyday financial situation for their employees. This need not be directly in the form of money. Food vouchers, sponsored trips or even simple spa and movie tickets are given out regularly as morale boosters.

A Good Financial Start

Benefits and bonuses are a lot more regular and simple now with the onset of the digital era.

Employers have tried to lighten any financial burden through tie ups with online loan apps or extending personal loans and salary advances themselves.
Companies are also issuing corporate credit cards to reimburse any excess expenses carried out by the employee for the organisation. This could include travel expenses and client meals.
Several banks, including State Bank of India, and ICICI Bank have extended their support to a prepaid card model. Expense management brands have also created prepaid cards for business purposes, so employers can get their money reimbursed easily.

Companies have come a long way as far as financial wellness is concerned, from team outings to regular bonuses and festival gifts, employers are going out of their way to ease the financial stress of their employees by fulfilling experiences. Tie ups with leading salary advance apps, such as EarlySalary also ensure that workers can obtain salary advances and personal loans at an affordable interest rate without much hassle and paperwork. It’s a good time to be part of an active workforce!