GNAT Mutual Fund Loan Chart, Interest Rates & Other Benefits. Apply for GNAT Mutual Fund, Check Loan Chart, GNAT Interest Rates, Benefits of GNAT Mutual Fund
The GNAT Mutual Fund Loan was set up in 1998 as a solidarity and retirement supplement scheme for members of the Ghana National Association of Teachers (GNAT). With current total membership of about two hundred thousand (200,000), the Fund was valued at approximately GHC1,527,527,821.74 Billion as at December 2019 represented by investments in treasury bills, listed equities, private placements, loans and facilities to members, real estate projects and other assets.
Each member is required to contribute a minimum of Fifty Ghana Cedis (GHC 50.00). This is referred to as basic contribution. Members are, however, encouraged to contribute in excess of the minimum amount and such contributors are called optional contributors. Both types of contributions are subject to change from time to time if the members agree.
Purpose of GNAT Mutual Fund Loan
- To provide retirement supplement to members.To provide lifestyle enhancing facilities to members in the form of loans.
- To facilitate access to credit purchases.
- To engage in property development and real estate activities by way of investment.
Other Benefits of GNAT Mutual Fund Loan
Members of the Fund are entitled to :
• Retirement benefit (exit package)
• Death/Permanent disability benefit under the Group Solidarity Scheme
• Loan facilities (Personal Loan, Investment Capital Loan, Habitat Loan and Vehicle Loan)
• Credit purchases of household consumer items from Credit Mall Limited on credit basis
GNAT Mutual Fund Loan Chart, Interest Rates & Other Benefits
GNAT Mutual Fund Loan Interest Rates
The loans constitute a key investment of the Fund. Therefore, there is the need to ensure that this investment yields significant and impressive returns. The interest realized on loans are distributed to members (including loan beneficiaries) as returns on their investments. Less than fifty percent of members access loans from the Fund.
This implies that majority of members contribute purposely towards retirement. Therefore if the Fund earns nothing or insignificant returns on the loans, exit packages for members will be negatively affected.
Currently, the GNAT Mutual Fund charges an interest rate of 1.33 % monthly or 16% per annum on loans using the reducing balance method. This implies that interest is charged on the remaining principal.
What is Teachers Fund Investment Capital Loan?
This a facility intended to support members to purposely undertake income generating or investment activities. The facility currently has a ceiling of GHC 40,000.
What is Habitat Loan?
With a current ceiling of GHC 50,000, this facility is designed to support members undertake housing projects.
What is Teachers Fund Vehicle Loan?
This facility is a lifeline to members for the acquisition of non-commercial vehicles. As part of the application process, the applicant is expected to submit an invoice from a vehicle vendor to whom the approved loan amount is disbursed. It has a ceiling of GHC 70,000.