PENSION BRIDGING LOANS
Up to 10% of your pension payout as a cash advance
Providing Financial Support While You Wait For Your Pension or Provident Payout
Leaving a job often comes with a waiting period before your pension or provident fund payout becomes available. This gap in funds can create significant financial pressure, making it difficult to cover essential expenses, manage debt, or seize new opportunities. Our Pension Bridging Loan service is specifically designed to provide you with quick access to a portion of your pending payout, effectively bridging this financial gap. Get the funds you need now, with repayment typically structured to coincide with the release of your pension or provident fund, allowing for a smooth transition without financial strain.
Common Reasons For Pension Loans Include:
Retirement
Access funds while the administrative process for your retirement withdrawal is being finalised.
Retrenched
Get necessary cash to cover immediate expenses after being retrenched and initiating your fund withdrawal.
Dismissed/Fired
Bridge the financial gap after your employment is terminated and you are claiming your fund benefit.
Divorce
Access liquidity from your share of a pension interest pending the formal payout from the fund.
Deceased Estate
Provide financial support to beneficiaries while they await the final death benefit payout from the fund.
What You Need To Know
Who It’s For
Our Pension Bridging Loan service is designed for individuals who have a verifiable pending payout from a registered pension or provident fund under one of the eligible scenarios listed above. If you are currently in the process of accessing your retirement savings due to retirement, retrenchment, dismissal, divorce, or as a beneficiary awaiting a death benefit, and you are experiencing a delay in receiving your funds, this bridging loan can provide necessary liquidity. It is ideal for those needing immediate cash to cover living costs, manage expenses, settle debts, or handle other financial commitments during this transitional period before their official fund payout is received.
Benefits of Pension Loans
- Rapid access to funds, allowing you to effectively bridge the income gap and cover essential expenses, preventing financial distress.
- Peace of mind knowing that the loan is a short-term solution tied to your pending payout, with repayment typically due upon the successful release and receipt of your funds.
- Flexible solution based on the value of your own retirement savings, allowing you to manage your transition smoothly and focus on your next steps without being held back by administrative delays.
Application Criteria
To be eligible to apply you must meet certain criteria that allow us to verify the validity and estimated value of your pending pension or provident fund payout.
- You must have formally initiated a withdrawal or transfer claim from a registered South African pension or provident fund under one of the eligible scenarios.
- Your claim must be verifiable directly with the fund administrator, and there is typically a requirement for a minimum estimated payout value.
- You must also possess a valid South African ID and have a South African bank account into which the approved funds can be disbursed..
Costs
Loan amounts range from R 2000 to R 50000, catering to a wide spectrum of financial needs.
Loan Terms & Cost Schedule
Loan Term: 65 to 90 days
Minimum Loan: R 2000
Maximum Loan: R 50 000
Interest: 28 %
- Minimum Term – 65 days
- Maximum Term – 90 days
- Minimum APR – 28 %
- Maximum APR – 28 %
Example :
- Loan advance: R10 000
- APR: 28%
- Initiation fee: R1197
- 90 day service fee: R205.20
- 90 day interest: R783.79
- Total repayment at 90 days: R12,185.99
Subject to lenders Terms and Conditions at time of quote
Frequently Asked Questions
What is a pension bridging loan?
A Pension Bridging Loan is a short-term loan designed to provide you with a portion of your pending pension or provident fund payout amount while you wait for the fund administrator to process and release your full withdrawal or transfer.
How much can I borrow?
The amount you can borrow is based on a percentage of your verified pending pension or provident fund payout value. This percentage will be determined during the application process based on our assessment and policies.
How quickly will I get my pension bridging loan?
Generally, payouts happen within 24 hours of approval.
When do I need to repay the loan by?
Repayment of the Pension Bridging Loan is typically due upon the successful release and receipt of your full pension or provident fund payout amount.
How does the repayment process work?
The specific repayment mechanism will be outlined in your loan agreement. It is often structured to be repaid directly from the payout amount when it is received, or repayment is due from you shortly after you receive your fund payout.
What if my pension payout is delayed longer than anticipated?
The loan agreement will outline terms regarding potential delays in your fund payout. Interest will typically continue to accrue on the outstanding balance during any extended waiting period. It is important to communicate any known delays to us.
Do I need to have left my job already to apply?
Yes, this type of bridging loan is generally available to individuals who have already left their employment and have formally initiated the withdrawal or transfer process for their pension or provident fund.
Will taking out a bridging loan affect my final payout amount?
No, taking a bridging loan does not reduce the total amount of your pension or provident fund payout. You receive the full payout from the fund administrator; our bridging loan amount plus agreed fees is then repaid from or upon receipt of that payout.
Are there fees associated with taking out a bridging loan?
Yes, there are typically administration fees and interest charged for the Pension Bridging Loan service. All applicable costs will be clearly outlined in your loan agreement before you accept the offer.
APPLY FOR PENSION BRIDGING
This form applies to the following bridging loan categories:
Endowment Policy Loans | Pension Loans | Provident Fund Loans |
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