Windhoek: The Government Institutions Pension Fund (GIPF) announced on Friday that its Pension-Backed Home Loan Scheme (PBHLS) will officially launch on Monday. The scheme will allow active members to use a portion of their pension savings as collateral for purchasing an erven, making improvements to existing homes, buying new homes, or constructing new homes in both urban and rural areas.

According to Namibia Press Agency, GIPF's General Manager for Marketing and Stakeholders Engagement, Edwin Tjiramba, stated that the scheme will be administered by First Capital Treasury Solutions (FCTS) and Kuleni Financial Services (PTY) Ltd. He advised members to apply directly through these administrators rather than submitting applications at GIPF offices.

Tjiramba emphasized that the pension-backed housing loan will not be available for consolidating debts unrelated to home loans. The loan cannot be used to acquire immovable property such as stoves, fridges, washing machines, livestock, and vehicles.

The scheme is currently limited to government-employed members and those on disability, with plans to include other participating members in the future. Tjiramba mentioned that GIPF will inform other participating employers like State-Owned Enterprises and Mission Hospitals once relevant agreements are finalized.

Members are encouraged to use their service provider's HR offices and online platforms, along with the necessary documents, for submitting applications.