GIPF's pension-backed home loan scheme kicks off
The Government Institutions Pension Fund (GIPF)–backed Home Loan Scheme (PBHLS) will become effective today.
According to GIPF spokesperson Edwin Tjiramba, the scheme will allow active members to use a portion of their pension savings as collateral to purchase erven, buy or improve existing homes, purchase new houses, or construct homes in both urban and rural areas.
Tjiramba stressed that the facility will not be granted for the purpose of consolidating non–home loan debt. However, the scheme will allow members to transfer existing home loans financed by other financial institutions.
The PBHLS is currently available only to active members and members on disability. Active members may access up to 33.33% of their GIPF pension savings as pension credit, at interest rates set at the prevailing repo rate plus 2.5%. With the current repo rate at 6.5%, this brings the interest rate on the loans to 9%.
The scheme will be administered by First Capital Treasury Solutions (FCTS) and Kuleni Financial Services (Pty) Ltd. Tjiramba urged members not to visit GIPF offices to apply for the loans.
According to GIPF spokesperson Edwin Tjiramba, the scheme will allow active members to use a portion of their pension savings as collateral to purchase erven, buy or improve existing homes, purchase new houses, or construct homes in both urban and rural areas.
Tjiramba stressed that the facility will not be granted for the purpose of consolidating non–home loan debt. However, the scheme will allow members to transfer existing home loans financed by other financial institutions.
The PBHLS is currently available only to active members and members on disability. Active members may access up to 33.33% of their GIPF pension savings as pension credit, at interest rates set at the prevailing repo rate plus 2.5%. With the current repo rate at 6.5%, this brings the interest rate on the loans to 9%.
The scheme will be administered by First Capital Treasury Solutions (FCTS) and Kuleni Financial Services (Pty) Ltd. Tjiramba urged members not to visit GIPF offices to apply for the loans.
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