Absa Pension Powered Home Loan

Absa Pension Powered Home Loan


It has been established through economic research that South Africa will face a real retirement crisis if more and more people are not able to afford to retire comfortably. Stats show that only a quarter of South African retirees are expected to be able to maintain their standard of living in retirement. It is also a fact that most people are not even aware of how bad their situation is and by the time they realise that they have not planned well, it is too late to make necessary provisions. One institution trying to make a difference in this regard is Absa. Absa has introduced the pension powered home loan.

Absa pension powered home 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 only affected in exceptional circumstances. Absa gives you the tools you need to manage the loan.The fund trustees, managers and employers determine the maximum amount that can be borrowed, as well as the percentage and payback.

Features of Absa pension powered home loan include the fact that it has limitations on the amount that can be borrowed to a set percentage determined by the pension or provident fund. Repayments are deducted directly from employees salary, making it very easy to manage. 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, which will settle your employees outstanding balance in the case of death, disability and retrenchment.

Categories: Loans

Write a Comment

Your e-mail address will not be published.
Required fields are marked*