What is an EiLoan and how does it work?

An EiLoan, often understood as an acronym for Employee Income Loan, is a financial product typically offered to employees by either their employers or through third-party lenders who work in conjunction with the employer. It functions as a short-term loan mechanism that allows employees to access funds based on their earned but unpaid wages before their official payday. The working principle is relatively simple: based on the amount the employee has already earned during the pay period, they can request a loan up to that amount which is then repaid automatically when the paycheck is disbursed. This service helps mitigate short-term cash flow issues for employees without resorting to more expensive credit options like payday loans, hence providing a lower-cost borrowing option and reducing financial stress for employees.