According to the regulation, members saving in retirement schemes licensed by the Uganda Retirement Benefits Regulatory Authority (URBRA) savers will be allowed to secure mortgages and loans using 50 percent of their savings.
Members of
different retirement schemes will be allowed to use part of their savings as collateral
to obtain loans.
According to the regulation, members saving in retirement schemes licensed by
the Uganda Retirement Benefits Regulatory Authority (URBRA) savers will be
allowed to secure mortgages and loans using 50 percent of their savings.
The loan will be tied to the construction of
cost-effective houses and purchasing land for construction and renovation of a
house.
Speaking at
the launch of the Uganda Retirement Benefits Regulatory Authority (assignment
of retirement and loans) on Tuesday at the Media Centre in Kampala, the Minister
of Finance, Planning and Economic Development Matia Kasaijja said that they
realized that when members receive their savings in a lump sum, they spend up to
two-thirds of the savings to construct their homes, which may not get
completed.
//Cue in: “Uganda’s
housing situation…
Cue
out……live in rural areas”. //
Luganda
//Cue in: Tubalabye abantu…
Cue out……sente
zino zeweterekera”. //
Martin
Anthony Nsubuga the Executive Director of URBRA, the regulation will benefit
the three million members who are saving in the different retirement benefits
schemes in the country. He also said that the interest rate will not be high
because they have discussed this with different banks.
//Cue in:
“Abo bonna abaterese…
Cue out….tebaziteekateka
bulungi”.//
According to
the regulation, a member of the retirement benefits scheme is eligible for the
loan if they have saved for not less than ten years. However, a member who has
left employment or a member who has attained the retirement age of 60 years is
not eligible for the loan scheme.
There
are 64 retirement benefits schemes licensed by the Uganda URBRA as of January
2022.
Fred Kayongo Male
Freelancer