Education, development loans available: NSSF

hursday, 21 February 2013 23:07

The NSSF Planning and Investment manager, Mr Mseli Abdallah, talks to Mwananchi Communications Limited (MCL) staff yesterday at the firm’s Tabata Relini headquarters. In the foreground are Bakari Machumu (left) acting MCL group managing editor and NSSF Operations director Crescentius Magori. PHOTO | VENANCE NESTORY

By Sturmius Mtweve
The Citizen Reporter

Dar es Salaam. Members of the National Social Security Fund (NSSF) have not yet fully utilised the loans offered through their respective credit cooperatives due to low awareness, the fund has said.

NSSF offers both education and development loans to its members through their Savings and Credit Cooperatives (Saccos) in the country at lower interest rates compared to market prices.

Education loan which is repaid in two years and a development loan of up to five years are offered at 9.32 per cent and 10.68 per cent respectively but the Saccos add up three per cent to cover their operation costs.
However, up to now, only six Saccos have secured loans worth Sh1.75 billion out of Sh5 billion the pension fund set aside to lend in the year ending June 2013.

“Less than a half of the amount was utilised in the current financial year. We will continue setting aside depending on the demand,” said Mr Mseli Abdalla, NSSF planning and investment manager yesterday.

According to NSSF Operations director Crescentius Magori, the situation has been caused by lack of information and awareness among members of these loan schemes.

He said in order for individuals to access loans from the scheme, they must first be registered members of NSSF and be active Saccos members as well – in which the Saccos will apply for the loan and lend to its members.

The NSSF officials were speaking yesterday to Mwananchi Communications Limited (MCL) workers in a session organised by the firm to appraise its workers on the benefits of joining employee-based Saccos and how the Fund works.

On the other hand Mr Magori said despite the fact that NSSF provides health benefits to its members, most of its members were still spending a lot of money in hospitals -- expenses which NSSF can cover through its benefit programe.