Housing loans

Housing Loans

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.


Pension Backed Lending unit (PBL) offers an alternative way for your company to help staff to meet their housing needs. With a Pension Backed Lending home loan, employees can finance their homes by leveraging the savings they have built up in their retirement fund.

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.

Maximum Loan

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

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.

Housing loans

Repayment period

Repayment period:

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.

Loan interest rate

Interest Rate

Primeless 0.50% 

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.

Standard Bank PBL Loan application requirements

  1. Members to complete an “Application Form” and “Income & Expenditure” in full
  2. Members to provide copies of the following:
    – Copy of ID document
    – Copy of ID document of spouse if married in community of property
    – Consent letter from spouse if married in community of property
    – Proof of residential address not older than three months
    – 3 months Payslips
    – 3 months Proof of banking details
    – Retirement Fund member benefit statement
    – Quotation of material if improving/renovating/building or
    – Offer to Purchase if buying a house or vacant land
    – All above to be faxed to 011 981 8885 / 011 981 8812 or emailed to PBLLoanorigination@standardbank.co.za

Once Standard Bank PBL receives your application, the process is as follows:

  1. Member applies to Standard Bank PBL for loan.
  2. PBL vets application for affordability and conducts NCA checks.
  3. Application successful – members advised and application handed to Fulfillment Consultants
  4. Fulfillment Consultant meets with member and conducts a member understanding i.t.o. NCA – borrower and member sign the loan agreement
  5. Loan agreement returned to Bank and sent to Fund for authorization and record flagging
  6. Loan agreement returned to Bank – conducts a final check and pays away the loan to member.
  7. If the loan is declined for whatever reason – member advised by SMS
  8. See opportunities to assist with re-habilitation through a borrower education program.
  9. Overall improvement in turnaround times:
    Vetting and work up of applications
    – Loan fulfillment
    – Discussions with Alexander Forbes on flagging of records
    – Loan pay outs
    – Loan settlements on exits etc.

Standard Bank PBL Contact Details

Member Assistance / enquiries – Call Centre:
086 100 9429

Download the PBL Housing Loan Brochure>