GNAT mutual fund: application, loan interest rates, contributions

GNAT mutual fund: application, loan interest rates, contributions

Financial independence is everybody’s dream. However, to grow, one has to take advantage of available loan facilities to avoid liquidating their assets or depleting their regular income. GNAT mutual fund is one such lucrative avenues for teachers. Its main aim is to accord teachers great retirement supplements. Teacher's contributions ascertain that they receive a considerable lump sum at maturity. Would you like to now the latest contribution regimen, appropriate loan amounts and interest rates?

GNAT mutual fund
Image:, @wenchignat
Source: Facebook

Teachers are the core of the education system and in most countries, formulate the most significant employed population. Therefore, their associations, like GNAT, are one of the biggest and most prosperous. The primary objective of such associations is to protect the interest of its members.

What is GNAT mutual fund?

GNAT (Ghana National Association of Teachers) is the most prominent teacher's union in Ghana established by a Trust Deed in 1998. The teacher’s fund has a monthly contribution scheme from its members’ salaries implemented through an efficient check-off system.

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The fund has a secretariat whose primary role is to implement the board’s policies and other objectives. The individual in the secretariat’s position is managed by the fund administrator appointed by the Board of Trustees.

Therefore, the union is uniquely created to cater to the needs of its members who might want to access the GNAT habitat loan or any other they would prefer.

GNAT mutual fund contributions

Are you wondering where to check GNAT mutual fund contributions to learn more about the amounts you ought to submit? The union has a well-established system for deducting the appropriate amounts from its members. It is a check-off system that works automatically. How much do members contribute?

The contributions have been frequently revised over time. In the beginning, members had to submit GHC 0.1 only. However, the amount was increased in 2008, 2011, 2014 and 2017. Currently, the lowest amount that members can contribute towards the mutual fund is GHC50.

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Already, plans are underway to increase this contribution amount to GHC70 reliant on the current survey of measuring the policy's practicability. The most significant contributors towards the mutual fund are the biggest gainers. The more a member contributes, the higher the take-home retirement package and the better the loan amount accessible.

GNAT retirement packages for members

GNAT mutual fund
Source: Getty Images

Once members retire from the service, they are refunded to support themselves. Funds are reimbursed to beneficiaries if the member dies. The amount of money refunded and the strategy used depends on the member's proportions of the contribution or the percentage of the current fund's value.

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1. Exit package

The fund assures every member a specific lump sum amount upon retirement referred to as exit package. What amount can a teacher earn as a retirement package?

Every member receives the lump sum of their contribution plus any amount accrued from their fund’s investment. The exit package for members that have deceased is disbursed to their next of kin.

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2. Death and disability scheme

This is also referred to as the group solidarity package. Members benefit from this package when they die or are permanently disabled. When a member dies, the next of kin is given the total contributions with the accumulated returns.

The next of kin is also paid GHC 500. Similarly, if a person becomes permanently disabled and cannot be active in their occupation, they are given the total contributions, the returns accumulated and GHC 500.

At the beginning of every year, teachers are given annual statements. These statements indicate their contribution history and any other relevant financial information.

GNAT mutual fund application

How long does it take to get a GNAT loan? Of course, it depends on the application process. Members of GNAT mutual fund have access to four types of loans. These include personal, investment, habitat and vehicle loan.

All these loans have specific prerequisites demanded from the applicant before approval. Also, you ought to recall that the bigger the contribution made towards the mutual fund, the higher the loan amount.

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1. Personal loan

The personal loan allows one to fulfil personal duties such as paying rent, school fees and emergencies. It can only be accessed by members who have a Unique Fund Identification Number. Personal loans facility has a ceiling of 15,000 Ghana Cedis. What are the requirements for personal loans?

  • A dully filled personal loan application form that one can access from any District GNAT Secretariat.
  • Two passport-sized images.
  • Two properly signed mandate forms possessing different serial numbers.

Additionally, an applicant ought to possess a copy of their identification document and latest payslip. They must also present, to the GNAT mutual fund, two authority notes, a loan advance form and deduction form.

2. GNAT investment loans

Investment loans are purely for people who want to pursue investment opportunities such as the purchase of land, property and any other activity that generates income. For a person to access it, they must have an income that can support monthly repayments. Other requirements include:

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  • Investment capital loan application form.
  • Two passport size photographs.
  • Two signed mandate forms with different serial numbers.
  • A loan advance form.
  • Two authority notes.
  • A deduction form.
  • National ID copy and evidence that the individual owns a business.

3. Habitat loan

The GNAT habitat loan is for people that are looking to embark on housing projects. The loan is designed to assist GNAT members to solve their housing problem and have superb living conditions. It is mostly for those looking to have a good house before retiring.

Anyone interested in accessing the loan ought to fulfil particular stringent requirements and be comfortable with a ceiling of GHC30,000. Other application requirements are:

  • A habitat loan application form.
  • Two passport size photos.
  • Two signed mandate forms with different serial numbers.
  • A loan advance form.
  • Two authority notes and a deduction form.
  • A valid copy of national ID accompanied by the latest payslip.
  • Evidence that the applicant owns land in the form of indenture, yellow card, land title, building permits etc.

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4. Vehicle loan

A GNAT car loan is meant to allow members to buy automobiles. The maximum amount of money that a loan applicant can get under the vehicle loan package is GHC 40,000. The maximum tenor for used cars is 60 months while that of new vehicles is 84 months. The requirements for one to become eligible for this loan include:

  • A vehicle loan application form.
  • Two passport size photographs.
  • A signed mandate form.
  • A loan advance and an authority note.
  • A valid national ID copy and the latest payslip.
  • The vehicle valuation report.

What is the chargeable interest on GNAT loans?

GNAT mutual fund
Source: Getty Images

GNAT was created to serve the interests of its members. Therefore, by disbursing loans, teachers can invest and buy property. The mutual fund has one of the lowest interest rates in Ghana at 18%. You can access other data from the GNAT loan chart.

  • The issuance charge is 2%, and the processing charge stands at 4%. Even though these charges are one-off, they are paid as part of the loan repayment. This is done to cater for the cost of paying the Controller and Account Generals' Department which carries out deductions on behalf of the mutual fund. This is part of the loan calculator Ghana.
  • The total contributions of the loan applicant should not be less than 10% of the loan amount they request.
  • A GNAT member is required to raise their contribution to 1% of the amount of approved loan. For personal loans, the monthly contribution cap is GHS 100. For the investment, habitat and vehicle loans, the monthly contribution cap is GHS 200.

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How to check GNAT mutual fund contribution

Would you like to know how to check GNAT mutual fund contributions? GNAT has incorporated technology in service delivery, allowing its members to check their mutual fund contribution quickly.

Registering process

One can register for the service using the availed shortcodes. You can do so using the following procedure:

  • Dial *718*60# on your phone. The service is available for Vodafone, MTN, Tigo, Glo, and Espresso networks.
  • Enter your staff ID number.
  • Write the requested six-digit code.

How to check GNAT mutual fund number

If you are not aware of your mutual find number, you can easily access it using a USSD code on your phone in the following way.

  • Dial *718*60#.
  • After selecting the second option, write your ID number.
  • Input your staff ID as well.
  • Once done, your mutual fund number will appear.

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How to check current contribution

Once you are registered for the service and know your mutual fund number, you can proceed to verify your contribution amount using the following steps.

  • Dial *718*60#.
  • Select the third option to check your current contribution.
  • Enter your fund ID.
  • Your current contribution will appear.

You can check for your total contribution in the following way:

  • Dial *718*60#.
  • Select the fourth option to check your total contribution.
  • Type the Fund ID.
  • You will get a notification with the total contribution amount.

If, after doing all the above processes correctly, you do not get the desired results. Get in touch with the GNAT Secretary for follow up.

How to exit from GNAT mutual fund

Are you looking for the appropriate way of leaving GNAT mutual fund? Most members leave the fund for various reasons, and it can happen through the following ways:

  • After retirement.
  • Death while in service.
  • Voluntary.

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What documentation should one provide to leave GNAT mutual fund other than the GNAT mutual fund exit form?

  • One passport-sized photograph.
  • The current payslip.

Members are given all accumulated contributions in the mutual fund. Suppose an individual dies while still a member of the mutual fund, their beneficiary processes all the paperwork. In case one desires to exit and has an outstanding loan, they are not allowed to leave until full repayment.

Accessing Teachers Fund CRM

GNAT mutual fund
Image:, @GNAT - Ashanti Region
Source: Facebook

GNAT mutual fund has made it easier to interreact with the union via their functional customer relationship management portal. You can easily access the platform from their website.

  • Visit the website and click on the members portal.
  • Log in or register by filling all the relevant information to access the system.
  • Once logged in, you access all the information about your account from a single platform. These are things like loan calculator, live chat and much more.

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If you are a teacher and have amassed a sizeable contribution over time, you are probably wondering about GNAT investment loans. Like other unions that protect members' interests and accumulate savings, GNAT mutual fund has experienced tremendous growth in assets over time. And the members, of course, are to benefit in loans disbursement and many more.

DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!

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