New requirements for the different GNAT loans

Revised Conditions for Accessing GNAT Teachers Fund Loans

The GNAT Teachers Fund has introduced new requirements governing members’ access to its various loan facilities. The review of these conditions has become necessary to promote responsible borrowing practices, safeguard the sustainability of the fund, and address emerging concerns related to members’ loan activities.

One major concern identified by the fund is the practice where some members obtain loans, withdraw from the scheme, and later return to access additional loans before exiting again. The introduction of the new requirements is therefore aimed at promoting commitment among contributors and protecting the resources of the fund.

The fund has also raised concerns about members who secure large loans shortly before leaving the teaching profession permanently. Some contributors reportedly obtain substantial loans to support relocation abroad, which may later create repayment challenges for the scheme.

About the Teachers Fund

The Teachers Fund is a retirement support scheme established for members of the Ghana National Association of Teachers (GNAT). The scheme was created through a Trust Deed in May 1998 to provide additional financial benefits and support for contributors.

The fund has grown significantly over the years and is currently valued at more than GH¢3 trillion. A large portion of its resources has been provided to members through different loan facilities, while other funds have been invested in various investment portfolios.

Requirements to Qualify for a Loan Under the Scheme

Members seeking to access loans from the Teachers Fund must meet specific eligibility requirements. These include:

•Membership status

•Minimum contribution period

•Minimum contribution amount

•Required documentation

•Guarantor requirements

1.) Membership Status

A teacher must be an active contributor to the GNAT Teachers Fund before he or she can qualify for a loan under the scheme.

Membership of GNAT alone does not automatically make a teacher eligible to access loans from the Teachers Fund. While joining GNAT is voluntary, participation in the Teachers Fund is also a separate decision.

Therefore, a GNAT member who does not contribute to the Teachers Fund cannot apply for a loan from the fund.

Members of the Teachers Fund are required to make a minimum monthly contribution of GH¢120.

2.) Minimum Contribution Period

New members of the Teachers Fund must contribute continuously for six (6) months before they can qualify for a loan under the scheme.

However, members who previously exited the fund and later rejoined are required to make continuous contributions for a minimum period of one (1) year before becoming eligible.

This condition is intended to discourage repeated withdrawal and re-entry into the scheme.

3.) Minimum Contribution Amount

First-time members applying for loans must have accumulated contributions equivalent to at least 15% of the loan amount they intend to access.

For members who withdrew from the fund previously and later returned, the minimum contribution requirement is increased to 20% of the requested loan amount.

This requirement ensures that loans granted are supported by sufficient member contributions and helps maintain the financial stability of the fund.

4.) Documentation Required

Members applying for personal loans do not need additional supporting documents.

However, applicants seeking investment loans must provide relevant business documentation, such as registration certificates. Where formal registration documents are unavailable, invoices may be accepted.

Members applying for habitat loans are required to provide valid land documents, including indentures and site plans.

For vehicle loans, applicants must submit vehicle documents or an invoice covering the purchase of the vehicle.

5.) Guarantor Requirements

Members applying for loans below GH¢10,000 do not require guarantors.

However, applicants seeking loans above GH¢10,000 must provide two guarantors before the loan can be processed.

The revised requirements are expected to encourage responsible borrowing practices and ensure the continued strength of the Teachers Fund for the benefit of members.