GNAT mutual fund: application, loan interest rates, contributions

GNAT mutual fund: application, loan interest rates, contributions

The Ghana National Alliance for Teachers(GNAT) mutual fund is concerned with giving teachers retirement supplements. While working, a certain amount of money is cut from a teacher’s salary to supplement and pay for their teachers mutual fund Ghana. They are given the amount once they retire. The GNAT mutual fund has been very beneficial to teachers as they are able to save money for future use. Additionally, they are able to access loans. The assets owned by the fund have now grown to approximately GHC 745 million from GHC 1.45 million when it was started!

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teachers fund
ghana teachers

This growth has been realized by the commitment of teachers to contribute and the dedication to ensure that there are good returns on investment. Initially, GNAT members were deducted GHC 0.10. This has, however, changed over time since its initiation in 1998 and currently as of February 2017, they make contributions of GHC 50.00. The massive positive change has been clearly outlined in the GNAT website.

Retirement benefits offered by GNAT mutual fund

Once members retire from the service, they are refunded to support themselves. Funds are refunded 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. Valuing of the fund, therefore, takes place periodically. Here are some of the details concerning the retirement benefits.

1. Retirement package

Besides the refunds that a member gets, they are also given an exit package. This package comprises of the total contributions of a person and any other returns earned thereon. If a person dies, their package is given to the next of kin.

2. Death and disability scheme

This is also known as the group solidarity package. Members are only eligible for this scheme in case they or become 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 500.00. Similarly, if a person becomes permanently disabled and they can no longer teach, they are given the total contributions, the returns accumulated and GHC 500.00.

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

Teachers mutual fund Ghana

The grant cycle for 2018-2019 is now open. The grant cycle commenced on August 1, 2018 and will come to an end on April 30, 2019. GNAT members are advised that they can only apply once per year. Another guideline is that the grant requests should be $1,000 and below. The average amount a teacher can get is $200-$500. Teachers are advised to send their grant request at the last day of the month so as to be considered for the next month’s grants.

Teachers fund gives Ghana teachers grants to buy school materials such as stationery, classroom rugs, electronics, storage tools and materials for science and math among others. For one to access funds from GNAT mutual fund, they have to apply. Below are some guidelines on GNAT fund application process.

  1. Visit the website to access the application form.
  2. Fill out your personal details such as your name, email address, mailing address and personal phone number.
  3. Proceed to fill your school details. i.e. the name of the school, its address and the grade that you teach.
  4. Fill information regarding the items that you are requesting, the amount of money and the number of students that the donation will benefit.
  5. At the end of the form, you will briefly describe what you will use the donation for and submit the application form.

The GNAT mutual fund application process is very straightforward and easy to complete!

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GNAT mutual fund loan interest rate

GNAT mutual fund offers four types of loans. These include personal, investment, habitat and vehicle loan. For each of these loans, there are requirements that the loan applicant must fulfill to become eligible.

1. Personal loan

The personal loan allows one to fulfill 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. To qualify for a personal loan

  1. An applicant must have acquired and completed the personal loan application form obtained from a District GNAT Secretariat.
  2. An applicant must have 2 passport size photographs.
  3. An applicant must fill 2 mandate forms that have different serial numbers.
  4. An applicant must be in possession of 2 separate authority notes.
  5. An applicant must have a loan advance form.
  6. An applicant must make a copy of his/her ID and be able to produce the latest payslip.

READ ALSO: Characteristics and qualities of a good teacher

2. Investment capital loan

Investment loans are purely for people who want to pursue investment opportunities such as 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 the monthly repayments. Other requirements include:

  1. An investment capital loan application form.
  2. 2 passport size photographs.
  3. 2 signed mandate forms with different serial numbers.
  4. A loan advance form.
  5. 2 authority notes.
  6. A deduction form.
  7. National ID copy and evidence that the individual owns a business.

3. Habitat loan

The habitat loan is given to GNAT members to cater for housing projects. This loan package particularly helps GNAT members who want to secure accommodation before retiring. A person, however, must own land to access this loan. The maximum amount of money that a person can be granted under this loan package is 30,000 Ghana Cedis. The other requirements include:

  1. A habitat loan application form.
  2. 2 passport size photos.
  3. 2 signed mandate forms with different serial numbers.
  4. A loan advance form.
  5. 2 authority notes and a deduction form.
  6. valid copy of national ID accompanied by the latest payslip.
  7. Evidence of that the applicant owns land in the form of indenture, Yellow Card, land title, building permit etc.

4. Vehicle loan

The vehicle loan, just like the name suggests is to enable members to purchase a car. 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 cars is 84 months.The requirements for one to become eligible for this loan include:

  1. A vehicle loan application form.
  2. 2 passport size photographs.
  3. A signed mandate form.
  4. A loan advance and an authority note.
  5. A valid national ID copy and the latest payslip.
  6. The valuation report of the vehicle.

Before the loan interest rate was changed, it was at 24%. Today however, it is at 18% per annum and this changed was made in July 2017. Below are some of the guidelines associated with GNAT mutual fund interest rates and GNAT mutual fund loan deduction chart.

  1. The issuance charges are at 2% and the processing charges are 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.
  2. The total contributions of the loan applicant should not be less than 10% of the loan amount they request.
  3. When a loan is approved, the GNAT member will be asked to raise their contribution to 1% of the amount of loan that has been approved. For personal loans, the monthly contribution cap is GHS 100. For the investment, habitat and vehicle loans the monthly contribution cap is GHS 200.

How to check GNAT mutual fund contribution

The incorporation of technology has eased the process of transactions in this sector. GNAT members can comfortably check their mutual fund contribution using their phones. They can follow the process below.

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how to check gnat mutual fund contribution

Registering for the service

  1. Dial *718*60# on your phone. This service is applicable to Vodafone, MTN, Glo, Airtel, Tigo and Espresso networks.
  2. Input your staff ID number.
  3. Enter a 6-digit code as prompted.

How to know your fund ID

  1. Dial *718*60# on your phone.
  2. Select the second option to check your ID.
  3. Enter your staff ID number.
  4. Your ID will appear.

Now that you have registered for the mobile service and known your fund ID, you can now check your current contribution and the total contributions.

How to check current contribution

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

How to check for the total contribution

  1. Dial *718*60#.
  2. Select the fourth option to check your total contribution.
  3. Type the Fund ID.
  4. Your total contribution will appear.

In case you do not get the message containing the passcode, contact the GNAT secretary in your district.

GNAT mutual fund contacts

In case you have any issues that you need to communicate to the GNAT mutual funds, you can reach them via the following contacts or visit their office at the address posted. The business hours are 8:00 am - 5:00 pm from Monday to Friday.

GNAT offices

Number 59, 7th Avenue Extension North Ridge, Accra

+233 302 429888

The GNAT mutual fund has experienced tremendous growth since it was established. It works towards its ultimate goal, elevating the lives of teachers. They can now access loans to build homes, buy property and also to cater for personal needs. Additionally, this mutual fund enables them to save money that they can use when they retire. With this mutual fund, a person who suffers from permanent disability does not need to be worried because they will be provided with a package. Due to the commitment of the members and dedication of the leaders, the GNAT mutual fund will experience more growth in future.

READ ALSO: Application letter as a teacher in Ghana


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