India has over 300 million blue collar workers with the immediate need for essential benefits. These workers get paid on piecework or hourly basis. Low earnings coupled with unpredictable expenditures make this employee section vulnerable to frequent cash shortfalls and financial shocks while eroding resilience in face of deeper market or health risks.
Since these workers are the lifeblood of enterprises, their employers need to put the best efforts in strengthening their financial health to keep them satisfied which leads to productive workplaces and successful enterprises. That’s one reason behind more and more enlightened employers entering into Fintech partnerships with companies like KarmaLife that offer bundled financial products, like loans and credit for the well-being of the blue-collared workers. Here, we will have a look at how such Fintech partnerships have empowered the blue collar workers through financial services, especially safe lines of credit.
Regular Loans for Blue-Collar Workers Payable over Multiple Installments
Most blue collar workers in India are not a part of the formal credit economy since they are new to credit or because they do not have a credit score. These fintech partnerships bridge this gap between the workers and NBFCs or big banks, with the objective to offer access to formal credit. Blue collar workers can apply for instant personal loans or credit lines that can help them build credit history and avail higher ticket loans at low rates of interest.
Earned Wage Access: A Responsible Financial Solution
In this era of digital transformation, technology possesses the potential to close financial inclusion gaps through solutions, like Earned Wage Access or on-demand payments for the blue collar workers. EWA or Earned Wage Access is a technology-driven employee welfare program that offers employees good control on when to get paid, thus improving their financial health.
KarmaLife is India’s largest Earned Wage Access (EWA) provider that helps the blue collar workers feel less stressed about their personal finance by improving flexibility in their monthly expenditures, especially in times of emergencies. And most importantly, enrolling in on-demand pay enables the blue collar workers to no longer rely on informal financial solutions. With easy smartphone navigation, workers can now access their earned wages as required instead of depending on pawn shops and loan sharks.
Final thoughts
While a large number of Indian blue-collared workers remain vulnerable to financial shocks, not all of them have access to affordable and safe financial solutions. Introducing financial wellness paradigms like credit line, personal loans and Earned Wage Access to these workers is something that can lead to increased retention and better performance. Even for the employers, on-demand payments prove to be beneficial as it enables them to manage human resources more effectively. Earned Wage Access helps businesses improve the financial health of their blue collar workers, connecting them to the workforce and bringing an all-new atmosphere to the work culture.To know more, visit contact@karmalife.ai.
