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Collateral-free loans for pensioners

by Staff reporter
08 Aug 2021 at 06:19hrs | Views
PENSIONERS are set to benefit from collateral-free loans through a new facility that has been developed by the National Social Security Authority (NSSA).

This is the latest in a number of initiatives that the authority has been implementing in recent months to better the livelihoods of its members.

Under the collateral-free loans, deductions will be made against monthly pay-outs, with the loan value pegged at up to 10 times the monthly pay-out.

In an interview with The Sunday Mail, NSSA spokesperson Mr Tendai Mutseyekwa said pensioners are free to choose projects of their choice.

"This is a microfinance scheme, so pensioners are allowed to submit any project proposal that they deem viable. It will be up to the banks to vet the proposals according to their lending criteria. The applicants should be receiving their monthly pension through the People's Own Saving Bank Zimbabwe (POSB) or National Building Society (NBS)."

To date, NSSA has extended US$2 million under the loan facility.

It is, however, subject to review depending on demand. POSB and NBS account for over 70 percent of NSSA's beneficiaries.

Other banks are expected to be added in due course.

Source - sundaymail