To help preclude 401(k) participants from taking out loans or hardship withdrawals, MassMutual is making Kashable credit services available through the BeneClick! employee benefits exchange.
Applications can be submitted online. Employees are prequalified for credit based on their employment; Kashable determines their ability to repay and sets the amount of credit they qualify for. Interest rates start at 6% with repayment terms between six and 12 months.
“Access to emergency credit can be a highly valuable benefit for workers and can help protect their retirement savings when financial emergencies arise,” says James Ocampo, assistant vice president, strategic development for MassMutual. “We expect Kashable’s loan program to be a popular voluntary benefit, both with employers and employees.”
MassMutual’s 2015 Employee Benefits Security Study found that 37% of workers find managing their personal finances somewhat or very difficult, and 40% say personal financial problems are a distraction at work. Additionally, Bankrate.com’s 2016 Financial Security Index revealed that 29% of Americans have no emergency savings, and of those that do, 21% do not have enough to cover three months’ expenses.
“In an economy where employees are worried about their finances, providing a loan program that meets the health/wealth challenge head on, is a major competitive edge for employers,” says Einat Steklov, co-founder of Kashable. “We applaud MassMutual for their comprehensive platform and are proud to be included on BeneClick!”