NAGRAT Revises Fund Loan Scheme: Interest Rate Reduced, Loan Ceiling Increased.
The National Association of Graduate Teachers (NAGRAT) has announced important updates to its Fund Loan Scheme. The revision is aimed at making loans more accessible, improving repayment flexibility, and strengthening the financial support available to members.
Effective Date
The new loan policy will officially take effect from 1st July 2026, as communicated by the National Secretariat. This means all new loan applications and existing arrangements will be handled under the revised terms from that date onward. The adjustment is part of broader efforts to ensure that members benefit from a more stable and supportive financial system within the association.
Key Changes Under the Revised Loan Policy
1.) Reduced interest rate
The interest rate on all loans has been reduced from 12% to 10%, and it will now be calculated using the reducing balance method. This method ensures that interest is charged only on the remaining loan balance, not the original amount throughout the repayment period. As a result, members are expected to experience lower overall repayment costs and reduced financial pressure over time.
2.) Increased loan ceiling
The maximum loan amount has been increased and capped at GHS 40,000.00. This improvement allows members to access larger sums of money compared to the previous arrangement. The increase is designed to better support teachers who may need funds for personal development, education, business activities, or urgent financial challenges.
3.) Extended repayment duration
The repayment period has been extended to a maximum of five (5) years. This change gives borrowers more time to repay their loans in smaller, more manageable instalments. It is expected to reduce monthly deductions and ease financial stress, making it easier for members to plan their budgets effectively.
4.) Introduction of loan top-up option
A new loan top-up facility has been introduced to give members additional financial flexibility. Under this arrangement, a member can apply for extra funds on an existing loan only after repaying at least 40% of the outstanding balance. This provision is meant to support members who may still have financial needs while already servicing a loan.
Communication and Support
The National Secretariat has instructed all regional offices to ensure that members are fully informed about these changes. This is to guarantee proper understanding and smooth implementation of the revised policy across all levels.
Members who need clarification or further assistance can contact the following numbers:
0597392595
0597302352
0256099737
Conclusion
The revised loan scheme reflects NAGRAT’s continued commitment to improving the welfare of its members. With reduced interest rates, higher loan limits, extended repayment periods, and the introduction of a top-up option, the policy is expected to provide meaningful financial relief and greater flexibility for teachers across the country.