Why involve employers in the loop at all? If automation is the goal, you could (presumably, not sure if it's actually legally/technically possible) connect someone's bank account to loan repayment.

How much of a pain it is for people to make those payments. Is it manual process now?

What's in it for the employer? Taking a significant headache of managing such system on behalf of the employee. There are probably legal ramifications for this scheme.

Presumably this would have to integrate with payroll systems. Which systems can you already integrate with?

Wouldn't employee be reluctant to disclose his loan repayment status? That doesn't sound like something employer should know.

Did you study potential legal ramifications of being intermediary between a person and loan provider?