TANZANIA: PENSIONS FUND STARTS ISSUING EDUCATION LOANS TO MEMBERS

LOCAL Authority Pensions Fund (LAPF) has from Tuesday introduced education loan for both its statutory and voluntary members.

The new loan system will benefit members who have been contributing to the fund for the period of not less than 24 months, LAPF Benefit Officer, Mr Baltazari Mugori told the 'Daily News' at the ongoing 38th Dar es Salaam International Trade Fair (DITF).

He noted that the loan was to be recovered upon completion of studies at a simple rate of between seven and ten per cent. "For members who will get admission at any local college, upon receiving joining instruction and invoice from the respective institution the fund will pay directly to the colleges' account," he said, adding that members who wish to pursue further studies were required to make early applications for the loan.

Mr Mugori noted that the Fund will pay 75 per cent of the tuition fees and the remaining amount would be covered by the member himself or herself. Currently, LAPF has about 150,000 and 500 statutory and voluntary members respectively countrywide.

The fund provides three longterm benefits retirements, validity and survivors and for short term benefit includes withdrawal, maternity, sickness benefit and funeral benefit.