Social security fund set to issue business loans to members

20Jan 2018
Beatrice Philemon
The Guardian
Social security fund set to issue business loans to members

THE National Social Security Fund (NSSF) will start issuing loans to its members who have contributed a minimum of 6 months for the purpose of growing their businesses.

THE National Social Security Fund (NSSF)

NSSF Senior Operations Officer - Informal Sector - Abas Cothema said this recently at the just-ended Students Entrepreneurship Day organized by the University of Dar es salaam’s Innovation and Entrepreneurship Centre (UDIEC) in the city.

 

The borrowers will have to adhere to rules and regulations set by NSSF for acquiring the loans so as to ensure that the money will be paid back as per agreement.

 

He said NSSF was doing this for the purpose of empowering people, especially those who are in organized groups such as Savings and Credit Cooperatives (SACCOs) and Agricultural Marketing Co-Operative Societies (AMCOS).

 

According to him, credit extended by NSSF would not exceed Sh20m for personal loans while those offered to SACCOS and AMCOS would be from 50m/- and above.

 

The loans will be issued to NSSF members in accordance with their needs and demands.

 

He called on students to join the scheme in order to benefit from the credit facility and other services it offers.

 

“Students keen to joint NSSF, right now the Fund has offices in all regions across the country and we have now expanded our network to reach more people through mobile technologies and other digital networks,” he said.

 

Also students who join the Fund would enjoy seven benefits that are categorized in short- and long-term categories.

 

Long-term benefits are Retirement Pension, Invalidity Pension and Survivors’ Pension, while short-term ones are Maternity Benefit, Employment Injury Benefit, Health Insurance Benefit and Funeral Grant.

 

“Students who will be ready to become NSSF members will be required to contribute Sh20,000 per month for three months and within two weeks they will start to get services depending on what they need,” he said.

 

This will be under special scheme established for students named ‘AA+ (Akiba na Afya kwa Wanafunzi)’, which allows students to accumulate capital for entrepreneurship after accomplishment of their studies while obtaining free Social health insurance benefit (SHIB) during their courses.

 

The one-day event sought to help students meet with local successful entrepreneurs in a bid to inspire those wishing to become entrepreneurs.

 

It offered them the opportunity to learn from Tanzania’s top business minds and understand what is required to make it big in business.

 

It was organized by the University of Dar es Salaam’s Innovation and Entrepreneurship Centre (UDIEC) with the support from NSSF, ASAS Dairies Ltd, Coca-Cola Company, CRDB Bank Plc and Institute of Management and Entrepreneurship Development (IMED).

 

In July 2017 NSSF extended interest to empower entrepreneurship through issuing loans for the purpose of growing their business.

 

The National Social Security Fund (NSSF) was established by the Act of Parliament No. 28 of 1997 to replace the defunct National Provident Fund (NPF). NSSF is a compulsory scheme providing a wider range of benefits which are based on internationally accepted standards.

 

The scheme is financed through contributions at the rate of 10 per cent of the employee’s while the employer tops up with another 10 per cent.