The Ghana National Association of Teachers (GNAT) has recently announced significant changes to the loan requirements for the Teachers’ Mutual Fund, effective February 2024.
In a letter addressed to the Regional & District Secretaries, the General Secretary of GNAT outlined the modifications aimed at streamlining the loan application process and ensuring the financial sustainability of the fund.
Under the new guidelines, contributors, both existing and new, will now need to fulfill a minimum contribution period of six months to qualify for a loan. However, members reinstated after exiting will be subject to a more extended minimum contribution period of twelve months.
The contribution to loan ratio has also been adjusted. New and existing members will be required to have a total fund contribution equivalent to at least 15% of every loan request, while reinstated members will need to meet a higher threshold of 20%.
Loan beneficiaries will be mandated to maintain a monthly fund contribution equivalent to 1% of the loan request, with specific maximum ceilings for different loan types. Personal loans are capped at GHC200, Investment Capital loans at GHC250, and Habitat loans at GHC300. Additionally, for certain loan requests falling within overlapping thresholds, the applicable ceiling will be determined based on the specific loan type.
Members seeking loans will now be required to observe a six-month interval between loan applications, promoting responsible borrowing and financial planning.
In terms of the application process, the number of witnesses required has been streamlined. For loan requests up to GHC10,000, only one witness is necessary. However, for loan amounts exceeding GH¢10,000, members must provide at least one guarantor, introducing a more secure layer to the lending process.
To qualify as a guarantor, members must meet specific conditions, including being a registered and active Fund member with a minimum contribution period of six months. Furthermore, a guarantor can only guarantee for a maximum of two qualified loan applicants simultaneously.
The authenticity of the guarantor will be verified by submitting a color copy of the Ghana Card (Front and Back). Importantly, the remaining active service period of the guarantor must not be shorter than the duration of the loan being requested.
The association believes that these adjustments will contribute to the responsible use of the fund and the long-term financial well-being of its members.
Source: GESHub.org
