Housing Loans are provided in terms of Section 19(5) of the Pension Fund Act, No 24 of 1956 through Standard Bank of South Africa and all applications for housing loans are dealt with by the bank in terms of the National Credit Act (NCA), No 34 of 2005.
With negotiable monthly repayments and a prime linked interest rate, your staff could have access to housing finance that costs the same or even less than mortgage-backed finance, that does not involve bond registration or property valuation costs and does not depend on the market value of the property concerned.
Your company can now improve employee well-being and performance, and build loyalty with no impact on your balance sheet and minimal impact on human resource administration.
It is Members & Municipalities’ responsibility to adhere to the agreement to ensure that the repayments are deducted and paid to Standard Bank.
33% of the member’s member share is furnished as a guarantee by the Fund to Standard Bank. If a member has R100 000 member share this means that the respective member may get a maximum loan of 33% which equates to R33 333 in the indicated scenario. The available 33% of member share will vary in line with individual value of member share
Minimum Loan: R2000.00
This subsequently means that a member needs to accumulate a member share of R15 000 in order to qualify for this benefit.
Maximum 10 years or Normal Retirement Date (age 70)
Minimum : R2000.00
Should a member make use of this facility for example in their second year in office, their loan is still calculated over a 5 year period. The member should make payments for the remaining 3 years in office of that respective term. Should the member be re-elected into office in the new term the remaining payments will be transferred to the first two years of the new term.
Should a member not be re-elected after their initial term and thus only paid 3 years the remaining amount gets deducted from the Member share prior to the members receiving their money.
MCPF has an agreement with Standard Bank Pension Powered Housing Loan (PBL) confirming surety on behalf of all MCPF members.
Each municipality needs to complete an undertaking on behalf of all its Councillors who are part of MCPF confirming that the municipality agrees to deduct the repayments prior to members receiving their salaries. This undertaking must to be returned to Standard Bank Pension Powered Housing Loans prior to its members making use of this facility.
Once the above mentioned undertaking has been received by Standard Bank PBL members can now apply for their housing loans. The completed forms together with the supporting documents should then be sent to your relevant Standard PBL office.
Member Assistance / enquiries – Call Centre:
086 100 9429