Retirement, Dismissal, Resignation, Death or Divorce are traumatic events in a working persons life, but on the positive side, the lucky ones who have had a company pension or provident savings scheme, are able to make their policy paid up and they can draw down a portion of their funds.
That is the good news. The bad news is that it can take months to get the pension funds from the pension administrators. The reasons for these delays are varied and very frustrating for the individual. In most cases
large corporate companies with call-centres that have very little incentive to process claims fast. This leaves the ex-employee, perhaps only drawing minimum benefit from UIF and now unable to meet their financial obligations.
Private pension lenders have recognized this problem and are able to advance pension cash to persons that have given notice to their pension fund, that they require their money to be paid out.
These Pension Bridging companies give pension loans from as little as R3000 up to R50 000 and even more in some circumstances. These funds are made available within 48 Hours of all the paperwork being completed. Yes, you hear right – 48 hours to get your pension payout!
Once the provident or pension fund pays out the investment funds, the provident loan or pension loan plus interest and fees is paid back to the lender and the balance is paid to the fund member.
Provident Bridging loans and Pension Bridging loans, landing rates are governed by the NCA (National Credit Act). Private lending companies are obliged to comply with the NCA or risk having their licences withdrawn. Rates charged for these provident loans are fair considering the risk the lender takes.
Pension bridging does not require any type of security. It is essentially an unsecured personal loan.
There is no risk to the borrower. There is a cost because the pension lender or provident lender charges interest and an administration fee. The borrower does not have worry about their pension money being stolen. The reason that the risk is low, is that the pension and provident money is paid directly into the members bank account, not to the lender.
Credit Bureau Listing
People often ask if they can get a pension loan if they have a poor credit profile. The good news is,
yes they can. This financial solution is designed to assist those in financial difficulty.
Provident Fund Loans and Pension Loans are a useful way for people that have funds saved to access some of their savings to assist them during difficult financial times.