Bengaluru, India, March 8, 2019 – PerkFinance, India’s leading salary-linked personal loan provider has launched a new product which enables contractual workers employed with service aggregators to receive an advance against their earnings. The product is aimed at services like ride-hailing, food delivery, and edutech platforms, which employ freelance teachers and tutors.
With the new offering, PerkFinance widens its audience base to include these contractual and demand-based workers who get paid at varying times, which makes it difficult for them to obtain loans. PerkFinance partners with the aggregator platforms that employ these workers to enable loan repayments through deductions from their wages.
“Contractual workers like drivers and delivery professionals find it hard to obtain loans from mainstream financial institutions due to the complex documentation involved and their lack of credit history. Workers on these platforms also do not have access to instant cash for personal expenses including emergencies as their wages, although steady, are irregular. We aim to change that by offering them the facility of availing advances against their earnings,” said Vikas Kothari, Founder, PerkFinance.
PerkFinance’s new offering is an extension of their salary-advance product for salaried employees, which was launched in January 2019.
A report titled ‘Gig Economy What We Know and What We Don’t’ from human resources solutions company PeopleStrong estimates that 56% of new employment in India is generated via gig work and is growing at the rate of 25% to 30% per annum.
PerkFinance partners with employers to provide affordable loans to their employees at no cost to the company. The loans are reported to the credit bureau enabling the borrowers to improve their credit score, which in turn betters their future loan prospects. PerkFinance’s financial products aim to improve employee well-being, thereby boosting productivity and reducing attrition.
Yogesh Keswani, Co-Founder, PerkFinance