India continues to be one of the top seven credit-limited nations and this has left almost 89% of employees financially stressed regardless of employment hierarchy, affecting their quality of life. 

Multiple government initiatives are in place but the impacts are still quite low as almost 480 million adult Indians are credit unserved. This amounts to around half the population of the working class in India who have no access to formal credit. Moreover, around 164 million people are classified as credit underserved as they have minimal credit participation despite access to banks and other financial institutions. 

Self sufficiency is another challenge. A 2021 study revealed that 80% of Indian employees are living paycheck to paycheck. The ever-increasing cost of living, fear of missing out lifestyle spending, poor financial planning, and vicious debt cycles are some of the factors that make it difficult for employees to sustain their cash flow every month, irrespective of the industries they serve or the income groups they fall under. 

Access to credit that is appropriate, timely, and inclusive to every type of employee’s needs continues to be a major gap that needs to be filled. On top of that, access to support geared towards building financial knowledge and resilience is also lacking in the country. Without these, Indian workers will remain stuck in a vicious cycle of debt and credit deprivation despite the government’s efforts to boost the national economy.

Financial solutions are available but not inclusive

The digital lending landscape in India is one of the most robust in the world. Industry reports estimate that this market could grow from $100 billion in 2019 to $350 billion in 2023. This industry was built to augment traditional banking and financial services to drive financial inclusion in the country. However, most alternative options lack last mile support and data-driven processes to drive wider adoption among every type of employee and industry. Access to credit has improved over the years thanks to new-age fintechs but there is still room for improvement especially when alternative credit providers use cumbersome loan application processes similar to traditional lending institutions.

For the underbanked population, the credit inaccess is even worse. They have no option but to borrow from informal lenders where they are vulnerable to credit fraud and can get trapped in a vicious cycle of debt and aggressive payment collection practices. 

Such money troubles have a direct impact on employees’ health and well-being. The constant deficiency of cash and not being able to fulfill the basic needs of their families pulls employees into financial stress, anxiety, and depression. Financial stress leads to low morale, absenteeism, lack of motivation, and focus at work.

Solving the credit crisis isn’t the sole responsibility of the government nor should it be the employees’ who are simply looking for a formal credit system that doesn’t discriminate against job role, industry, tenure, and credit history. 

Employers should empower their employees financially

Employees trust their employers the most with their finances. They even believe that you as an employer have a role to play in helping them better manage their finances. 

The trust they have puts you in a unique position to bring change into their financial lives. You can empower your people by giving them access to financial solutions in the form of employee benefits. Having employee wellness as a core value not only helps employees become financially independent but also curbs attrition by boosting productivity and stress management. Additionally, it aids the process of finding and retaining the best talent by building trust.

Helping your employees financially not only puts attrition, disengagement, and absenteeism, at halt but also helps you in building a resilient workforce.

Take a step to help your employees curb credit crunch

Encourage them to maintain a healthy balance of debt to income ratio. Educate them about the power of savings and investment and how they can be on their happy path of financial stability and independence. 

You can also provide your employees with credit solutions to help them in times of need. You can enable financial inclusion at your workplace by providing them with affordable, reliable, and convenient financial solutions as employee benefits programs. 

Employment-linked financial solutions are the safest avenue

The credit underwriting process is complicated, with an extensive approval process and eligibility requirements. What really matters is how appropriate, timely, affordable—and in the modern age, how hassle-free the process of getting funds is.

This puts employment-linked solutions at the forefront of consumer finances since proof of employment is the sole criterion for availing of funds. 

We at SAVii believe that employment is the vehicle to financial empowerment. We use it as the driver of eligibility for employees in need of funds. Our partner companies’ employees enjoy quick, safe, and personalized lending solutions, while our partners enjoy employee engagement and trust. 

Need an employee benefit program that can help with financial inclusion and employee engagement? Leave us a message at to know more about our customized employment-linked solutions.