SSF launches educational loan scheme

 Kathmandu, July 17

The Social Security Fund (SSF) has launched a programme to provide educational borrowing facility of up to Rs. 3.5 million to its contributors.

Educational lending has been arranged for contributors who have deposited at least 36 months of contributions to the fund and who have at least two years left before the mandatory retirement due to age or service.

The programme is implemented with the approval of the Contributors Borrowing Directives, 2022 of the SSF by Minister of Labour, Employment and Social Security, Sher Bahadur Kunwar.

According to the directives, such facility could be given to the contributor or his/her husband, wife, son, daughter for the purpose of higher education in educational institutions within the country or abroad.

Contributors can borrow up to Rs. 3.5 million as per the actual expenses incurred at the concerned educational institution, said the SSF in a statement. The student's admission fee, monthly, exam, hostel or accommodation expenses, other fees specified by the relevant educational institution, educational material expenses, and travel and insurance expenses will be covered in the said amount.

If the contributor repays the educational loan taken, it can be re-granted.

Kapil Mani Gyawali, Executive Director of the SSF, said that from the first month of the current fiscal year 2022/23 which began on Sunday, the social security fund will start providing services to contributors who have contributed regularly for 36 months.

This directive has been prepared in accordance with the provisions of clause (K) of sub-section (1) of Article 32 of the Contribution-based Social Security Act, 2017 and the Social Security Fund Investment Procedure, 2020.

In the directives, under the 'contributor house loan', the fund provides subsidy for new house construction, addition of storeys to the house owned by the contributors, renovation, purchase of unit in joint housing and house purchase.

While approving the house loan, the amount will be approved in such a way that it does not exceed the amount determined by the mortgage appraisal.

For that, financial support will be given according to the method in which the amount is less from the selected three methods. According to the first method, Rs. 7.5 based on the mortgage, as per the second, the salary of the contributor for 15 years, and as per the third, the salary for the remaining period until the contributor reaches the age of 60 years.

Published in The Rising Nepal daily on 18 July 2021.