In 2004, a special loan product was introduced by PPF Pensions Fund to assist members to live a comfortable life while still actively working and prepare for life after retirement. The product was structured such that it is easily accessed, very affordable to members and has low risk to the scheme. The loan is disbursed to the SACCOS already established by employees at their working places hence the name Employees-based Saving Credit and Cooperative Society (SACCOS) was given to the product.

 

The use of existing SACCOS already established in the members 19 working places enabled the Fund to reduce administration costs, minimize the credit risks to the Fund and hence provide affordable interest rate to members. Up to 31st July 2014 approximately USD43 million was disbursed to members and the outstanding loan balance was USD22.22 million.

 

PPF Pensions Fund was the first scheme to introduce the product in the market. The product supplements members 19 monthly income, enables members to access medium term loans, encourages members 19 saving culture and helps recruit new members to the scheme.