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Life Line Loans

About Life Line Loans

Step Up Savannah and Consumer Credit Counseling Service are now partnering with Georgia Heritage Federal Credit Union (GHFCU) on a new employer-based loan program called the Life Line Loan. Employees gain access to an affordable small-dollar loan ($300-$1500) through their employer which helps them to meet emergency needs while building credit at the same time. The loan program is also being coupled with on-site financial education to assist employees to develop a better understanding of how to manage credit and debt.

How it works

Employers sign a simple MOU with GHFCU to offer the program to employees. Employees access the loan through human resources staff, who verify that the employee has been working for the company for at least 6 months and is in good standing. GHFCU then quickly processes the loan which is repaid through payroll deduction. Credit score is not an issue in loan determination, though the employee’s ability to repay is assessed.

GHFCU reports loan payments to the credit bureaus so that the employee is also establishing a positive credit history, which works to improve their credit score. Once the loan is paid in full, the loan payment amount continues to be withdrawn from payroll and deposited into the employee’s savings account until they opt out. This feature of the program allows employees to build up an emergency savings fund after they have become used to the payroll deduction.

Six employers have signed on to participate thus far including Chatham County, City of Savannah, Chatham Area Transit, Goose Feathers Café, Hospice Savannah,  Fullfillment.com and Senior Citizens, Inc.

Are you an employer interested in offering the Life Line Loan?