Thursday 18 October 2012

Five reasons why employee salary deduction agreements are beneficial for employees

For many South Africans, higher education is out of reach simply because it is not affordable. Even though billions of rands are set aside each year by government for the NSFAS (National Student Financial Aid Scheme) programme to finance students from low-income households, little help is available to students who come from slightly higher-income families.

Eduloan’s employee salary deduction service, initially only available to civil servants, has now been made available to corporate companies as well. Employees whose companies make use of this service will be able to have their study loans deducted straight off their salaries.

So why is this method of paying back loans so beneficial?

  1. There’s no risk of spending too much money before the debit order comes off because the money goes straight towards paying off your study loan without first going into your bank.
  2.  Eduloan’s employee salary deduction agreement for businesses gives you access to an extremely low interest rate on the loan making the repayments affordable. That means the amount will be paid off faster and will cost you less.  
  3. It shows that your employers care about you as an employee. There is an increasing trend towards employers seeing education as an employee benefit, like medical aid or pension funds, and any employee that studies towards a degree or a diploma is contributing positively towards the company’s skills and knowledge base. 
  4. You can also use the employee salary deduction arrangement to fund the education of your dependants or indeed anyone who you would like to sponsor. 
  5. The employee salary deduction arrangement is easier than applying for a loan at a bank because the credit checks are less stringent.

If you would like your employer to consider implementing the employee salary deduction arrangement with Eduloan, more information can be found on our website.

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