Pension Powered Home Loans
A Pension Powered Home Loan from Absa allows your employees to use their pension or provident fund benefit as security against the loan without eroding the retirement benefit. The amount borrowed is guaranteed against the fund – meaning that the employee’s pension or provident fund value would only be affected in exceptional circumstances
With Pension Powered Home Loans, we give you all the tools to manage it the way you’d like – fund trustees, managers and employers determine the maximum amount that can be borrowed, as well as the percentage and payback
We offer affordable Credit Protection Plan which will settle the outstanding balance in the case of death, disability or retrenchment.
The Pension Powered Home Loan includes:
- Limitations on the amount that can be borrowed to a set percentage determined by the pension or provident fund
- Repayments are deducted directly from the employee's salary making it very easy to manage
- Finance costs for the home loan are reduced as there is no bond registration or valuation costs