Pension Backed Loan

What is a Pension Backed Loan?

The Pension Backed housing loan can be obtained by an employee who belongs to the KZN Municipal Pension Fund
per the agreement that has been entered with the two banks we are working with. The loan is enabled by Section 19 (5) of the Pensions Fund Act of 1956. The loan is secured by a guarantee or pledge of pension fund benefits.
Purpose of the loan
The loan can be used to build, buy, improve, renovate, extend a house or buy land with an intention of
building a house.