Research published in March 2023 by the Financial Inclusion Centre and Swoboda Research Centre, has great benefits for the borrowers finances and wellbeing over all. Deduction lending: Does it add up for low income borrowers? says ‘what we found was overwhelmingly positive.’
The first recommendation of this research is that ‘more employers should partner with credit unions to deliver payroll deduction schemes to their employees’.
Highlights from the research include:
- 95% of payroll borrowers were very satisfied or satisfied with their loan.
- 87% of payroll borrowers felt their credit union loan has helped them a lot.
- Having funds directly transferred to the credit union is the most popular reason for choosing a payroll loan.
- 97% of payroll borrowers either strongly agreed or agreed their loan was affordable.
- Only 7% of payroll borrowers strongly agreed or agreed they struggled to keep up with household finances since their loan repayments were made directly from their wages.
- 54% of payroll loan users said they rarely or never saved before they took out the loan.
- 72% of payroll borrowers agreed the loan helped them save more regularly.
- 70% of payroll borrowers either strongly agreed or agreed that they felt more confidence about managing money.
- 60% of payroll loan users felt less stressed, anxious or depressed since taking out the loan.
If you are an employer that would like to find out more about offering our Chorus Workplace Savings Scheme to your staff team, please contact us by emailing info@wavecb.org.uk.
