Mexicans will seek these options in the face of unforeseen events or offset their income as some companies will resort to a bond reduction due to the pandemic.
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Payroll loans are the most popular financing product in the country 5 million loans, according to the latest data from the Bank of Mexico correspondingly at the end of June 2019.
This is due to their quick access because they have a lower risk of non-payment, because they are tied to workers’ wages and discounts are granted directly, so that Crime Index (IMOR) of this type of financing only reached 2.9%, compared to 4.4% of consumer loans.
But what’s the difference between a payroll loan and a personal loan? The most important thing is that no confirmation or guarantee is required. In addition, monthly payments are deducted directly from the account where you receive your salary, which shortens approval times.
After the technological solution SalaryFitsCash loans, life or auto insurance and funeral credits are the most popular payroll products used by employees whose companies adhere to this platform.
Mexicans use this type of loan for contingencies that have an unexpected impact on their pocket, which means high spending, the company said.
Gustavo Boletig, CEO of SalaryFits for Mexico, expected this to be the case economic uncertainty Due to the COVID-19 pandemic, workers will look for options or compensate for their income in the event of unforeseen events, as some companies will resort to premium cuts, making it a good time for companies to expand their spectrum to other types of benefits, They mean no costs to them, but they create loyalty and security among their employees.
SalaryFits enables Mexico’s employers to provide low-rate benefits to their employees to help them maintain financial stability and improve their spending habits.
It is a free service that does not require affiliates to approve or fund a loan request for their employees.
Instead, it works through a platform that enables financial institutions to integrate companies’ payroll into their systems, perform a risk analysis, and then deduct fees directly from salaries.