Housing loans

The Fund does not provide housing loans directly.  However, a member may use up to one-third of her/his Fund Credit (savings balance in the Fund) as a surety in respect of a housing loan by a banking institution with which the Fund has a suitable agreement in place - the Fund will provide a guarantee to the bank for such an amount (up to one-third of the member's Fund Credit).  Rule 13.2 of the Fund Rules refers.  

As of May 2023, the only banking institution with which the Fund has such an agreement in place is Ithala Bank.  (However, as of June 2024, our understanding is that Ithala is not permitted to make new loans.)

Members who want to apply to Ithala for a loan for housing purposes (as defined in the Pension Funds Act) should approach the Fund's administrator, AlexForbes, for details of how to do so.  Members should note that any bank loan is subject to the requirements of the National Credit Act.