ST. LOUIS— Alltru Credit Union said it is offering a free Employer Benefits program with a goal of strengthening the “financial capacity and stability” of local employees.
In announcing its program, Alltru CU cited a study by the Society for Human Resources Management that found “unchecked employee stress is leading to anxiety and depression in employees and financial loss to employers,” and that 61% of human resource professionals reported financial stress as having some effect on employee work performance.
Free Classes
Alltru CU said it offers free financial education classes that offer information to employees of the resources and tools are available to them through their employer and how they can benefit from them in the short-term and long-term.
It said it further offers personalized financial reviews, small dollar emergency loans, fee free health savings accounts, highly unique credit building loans, checking accounts and high yield savings accounts.
Specifically, Alltru CU said that through its Salary Advance Loan employees are offered small dollar loans at a 15.99% APY, regardless of their credit score.
How Program Works
“Affordable payments toward the Salary Advance Loan are taken directly from the employee’s paycheck and help build the borrower’s credit score, unlike a payday loan, which can come with average interest rate of more than 400% in the state of Missouri,” the credit union said. “In addition, the employee can continue sending the payment amount after the balance is satisfied, which will automatically be put into an individual savings account, allowing the employee to save for a future emergency.”
An ‘Added Benefit’
Employees with damaged credit scores can also take advantage of the unique Credit Builder Loan, according to Alltru, though which they can borrow a small amount of money and pay monthly toward the balance with very affordable payments. When the balance is paid off, the money is released to the borrower, resulting in established credit and an improved credit score, and a small savings account balance.
“As an added benefit, if all payments are made on time, Alltru also refunds half of any interest which is accrued back to the borrower,” the credit union added.