The Secretary to the Public Service Commission (PSC), Ambassador Jonathan Wutawunashe says the Government Employees Mutual Savings Fund (GEMS) loan facility is ready to roll-out from 1 May 2021.
In a statement Ambassador Wutawunashe highlited that qualifying members of the voluntary fund, who have made contributions for three consecutive months can, on 1st of May 2021, apply for loans.
The objective of the fund is to encourage members to accumulate savings through small monthly amounts, provide financial assistance to members and enhance financial flexibility and security for members.
Under this facility, civil Servants make monthly committed deductions from salary into a ring-fenced Pool.
These monthly contributions are be ring-fenced as Capital Contributions which will accumulate and will be held as his or her share of savings in the pool for the account of the member.
The deductions will be tied to one’s grade and con in the civil service. The grading system will then also define the benefit levels/ loan limits.
Upon exiting from the fund on termination of employment, or from voluntary exit through the opt out option, employees will access the full residual capital contributions and all accumulated interest less any loan obligations that they may have.
Meanwhile, loans are short term and medium term. Short term loans will have a tenure of up to 12-months, with members able to apply for five-times their net salary for a maximum of ZWL$100 000.00.
Medium Loans will be a thirty-six-month facility which is for a maximum of eight-times one’s net salary for a maximum amount of ZWL$500 000.00. A minimum interest rate of 10% shall apply per annum.
Wutawashe, said GEMS members are expected to collect and submit application forms at any National Building Society Bank (NBS) branch nationwide or from PSC offices nearest to them.
Applicants should attach copies of Identification Card or valid passport or drivers licence; a Payslip not older than three-months and fill the GEMS Loan Application Form and TY30 deduction form.
ZWL$200.00 application fee is levied on all applications.