Kashable is an alternative personal loan lender that markets itself as a benefit to the employees of participating employers. Instead of having to borrow from your retirement plan, credit card or other high-cost lenders, Kashable allows you to get a fast, short-term loan at reasonable rates. The company was founded in 2013 by Einat Steklov and Rishi Kumar and is based in New York City.
Kashable provides employers a product called Group Credit Benefit Program and is linked to TriNet Marketplace, one the biggest employee benefits marketplaces in the United States. The product is free for employers and provides employees a fast, easy and relatively inexpensive source of credit. Instead of having to go to a bank or fill in long and complicated online application forms, Kashable borrowers can take request a loan online. The funds are deposited automatically to their bank account and payments are made directly through payroll deductions for a loan term of six to eighteen months. Loan installments are made automatically so there is no need to worry about missed payments or late fees.
Rates range from 6% APR to the maximum rate for installments of each state. Some states like North Carolina have a 16% APR cap while other states like New Mexico, Delaware and Utah have no cap. However, Kashable loan officers claim rates are usually around the mid-teens APR because Kashable loans are designed to be a better alternative than the next best unsecured loan alternative available to employees, which is usually their credit card.
Maximum loan amounts vary on the income of the borrower. According to Kashable the lowest amount has been $250 and the average is around $1,000. The maximum loan amount is capped at 12% of an employee's net paycheck.
Kashable serves employees in all 50 states. However, borrowers must be eligible for benefits through a participating employer.
Once an employer enrolls in the program, which is free, its employees are eligible to apply for a loan. Borrowers must fill in an online application, which is easy and fast to process. The first step is to verify your identity and ensure your employer is participating in the Group Credit Benefit Program. Then select a loan amount and repayment schedule and sign the online form. Around 95% of applications are approved. The cash is sent directly to your bank account and payments are deducted straight from your wages. No need for checks or remembering to make payments.
Kashable gives people with sub-prime credit a chance of qualifying for rates that are better than what they can expect from their credit card. It also offers an alternative to dipping into your retirement fund or getting a payday loan when you suffer a financial emergency. The equal payroll deductions make repaying the loan manageable. Kashable reports the payments of borrowers to the main credit reporting companies, which can help improve their credit score over time.