It continues to be established through economic research that Nigeria will face a genuine retirement crisis if more and more people are not able to manage to retire comfortably. Stats reveal that only a quarter of South African retirees are expected to be able to maintain their quality lifestyle in retirement. It is also a fact that most people are not even conscious of how bad their situation is and by the time they realise that they have not planned well, it's past too far to create necessary provisions. One institution trying to make a positive change in this regard is Absa. Absa features the pension powered home loan.
Absa pension powered mortgage loan allows your employees to use their pension or provident fund benefit as security against a home loan without eroding their retirement benefit. Under this loan, the amount that the employee borrows is guaranteed against the fund, meaning their pension or provident fund value is just affected in exceptional circumstances. Absa provides you with the various tools you need to manage the borrowed funds.The fund trustees, managers and employers determine the maximum amount that can be borrowed, along with the percentage and payback.
Features of Absa pension powered home loan range from the proven fact that it's limitations around the amount that can be borrowed to some set percentage determined by the pension or provident fund. Repayments are deducted directly from employees salary, making it super easy to handle. Finance costs for the home loan are reduced because there are no bond registration or valuation costs.
This loan also comes with an affordable credit protection plan, that will settle the employees outstanding balance when it comes to death, disability and retrenchment.
