NSSA loan facility discriminatory
The National Social Security Authority (NSSA) had criticized by pensioners over “discriminatory clauses” on the institution’s US$5 million loan facility meant for retrenches. NSSA recently availed funds to Metropolitan Bank and FBC Bank for asset financing purposes to contributors to the national pension fund and for onward lending as working capital, who would have been retrenched and have viable income generating projects.
A key prerequisite for being eligible to access the loan facility is the applicant must be aged between 18 and 54 years. Loan applications being repayable over periods of 6 to 12 months have to be from US$500 to US$5 000. The money was lent to the banks for on-lending to retrenched contributors at an interest rate to the end borrower of 10% per annum. The banks are liable for repayment of the loans to NSSA. They accordingly take the risk with the end borrower.
The borrowers have to meet the banks’ lending criteria as well as NSSA’s, the authority said. Provided they satisfy the concerned bank’s normal lending criteria it sees no reason if a person from 55 to 60 yet not receiving the NSSA pension. They should not be considered for the loan. Other requirements for consideration to access the loans include a bankable business proposal and proposed security among others.