Teachers’ fund has made available some changes in requirements for teachers’ fund loans come February 2024. Members of the fund should take note of the new requirements so that they act accordingly when applying for loans.
The 6 headings you should look at for are:
1. Minimum Contribution Period
2. Contribution to Loan Ratio
3. Monthly Contribution
4. Loan Frequency
5. Witness
6. Guarantors
The 6 headings have been detailed below:
- Minimum Contribution Period
•Current condition
The current condition is that a member will have to contribute to the fund for a minimum of *6months* before a loan can be granted.
•Changes to come
A new member will have to contribute to the fund for a minimum of 6 months to qualify for a loan.
However, reinstated members, that is, members who exit and come back will have to contribute for a minimum of 12 months before they can pick a loan.
- Contribution to Loan Ratio
•Current condition
New and existing members will have to get a total fund contribution of 10% of the amount they wish to take as loan. Example, If a member wants to apply for an amount of GHc5,000, the member should have a total contribuition of at least GHc500. For a loan of GHc10,000 the member would have get a total contribution of GHc1,000.
•Changes to Come
Existing and new members will have to get a total fund contribution of 15% of the amount he or she wants. But reinstated members will have to get a total fund contribution of 20%. Example, If a new or an existing member wants to apply for say GHc10,000 he or she will be required to have a total contribution of GHc1,500 while a reinstated member for the same amount will have to get a total fund contribution of GHc2,000
- Monthly Contribution
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•Current condition
A member needs to be making a monthly contribution of 1% of any amount he or she decides to take with a maximum monthly contribution of GHc150 for all the types of loans.
•Changes to Come
Members will be required to make a monthly contribution of 1% of the amount to take with a maximum ceiling for the different types of loans as indicated below:
Personal loan – Up to GHc35,000
Up to GHc 35,000 for a maximum period of 4 years has a maximum monthly contribution ceiling of GHc200. Meaning for a monthly contribution of GHc200, a member can take a loan up to GHc 35,000 for 4 years.
Investment Loan – up to 50,000
Up to 50,000 for a period of 5 years. Investment loan has a monthly contribution ceiling of GHc 250. What it means is that for a monthly contribution of GHc250, a member can take a maximum of GHc 50,000 for 5 years
Habitat Loan – up to GHc60,000
Up to 60,000 for a period of 5 years with a monthly contribution ceiling of GHc300. Meaning for a monthly contribution of GHc 300, a member can take a loan up to GHc60,000 for 5 years
- Loan Frequency
•Current condition
Members observe a 6months interval between loans. For instance, if you pick a loan in December 2023 and the deductions start in January, 2024, you will have to wait till July, 2024 to apply for another loan, whether new loan or refinancing.
•Changes to come
With this, same condition applies
- Witness
•Current Condition
The Fund require 2 witnesses for all types of loans.
•Changes to Come
A member will need just 1 witness for loan amount up to GHc10,000.
- Guarantors
•Current condition
No guarantors needed
•Changes to come
For all loan request exceeding GHc10,000, members will have to get one guarantor who will attach his coloured copy of Ghana Card to the application.
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