HOW IT WORKS
A Simple Payroll-Linked Lending Process for Employers and Employees
01
Employer Partnership
The employer authorises payroll deductions for approved employee loans, creating the foundation for a structured payroll-linked lending solution.
This allows employees to access financial support through Low Budget Loans, while the employer remains separate from the lending decision and loan funding process.
This is the correct first step because the process starts with the employer allowing payroll deductions for approved loans.
This allows employees to access financial support through Low Budget Loans, while the employer remains separate from the lending decision and loan funding process.
This is the correct first step because the process starts with the employer allowing payroll deductions for approved loans.
02
Employee Application
Employees apply directly with Low Budget Loans through available application channels such as WhatsApp, online application, QR code, telephone or SMS.
There is no paperwork-heavy process and no HR involvement in the loan application itself.
There is no paperwork-heavy process and no HR involvement in the loan application itself.
03
Assessment and Approval
Low Budget Loans conducts the affordability assessment, verification and approval process directly with the employee.
The employer is not involved in lending decisions, helping keep the process independent, responsible and professionally managed.
The employer is not involved in lending decisions, helping keep the process independent, responsible and professionally managed.
04
Loan Disbursement
Once an application is approved, the loan amount is paid directly to the employee by Low Budget Loans.
The employer does not release funds, provide loan capital or carry the lending risk.
The employer does not release funds, provide loan capital or carry the lending risk.
05
Payroll Deduction
Repayments are deducted through the employer’s payroll system according to the agreed repayment structure.
This creates a clear, predictable repayment process for employees, while Low Budget Loans manages the repayment administration and loan-related queries.
This creates a clear, predictable repayment process for employees, while Low Budget Loans manages the repayment administration and loan-related queries.
The employer does not fund loans, approve applications, collect repayments or manage loan queries. Low Budget Loans manages the lending process from application through to repayment administration.
A fully outsourced payroll-linked lending solution
Typically how an Employee will apply for a payroll linked loan.
READY TO IMPLEMENT A SIMPLE PAYROLL-LINKED PROCESS?