July 18: Contributors of Social Security Fund (SSF) will now be able to take 'home loan'. The Ministry of Labour, Employment and Social Security has approved the 'Contributors Credit Guidelines 2079' making the contributors eligible to take such loans.

In the guidelines prepared by the fund and approved by the Ministry of Labor, there is a provision that the fund to give loans to the contributors to build a new house, add a floor to the house under their ownership, renovate the house, buy a unit in joint housing and also to buy a new house.

According to the guidelines, the contributors who have contributed to the fund for at least 36 months and have at least 2 years left to retire based on their age and service period will be given a lump sum for this purpose.

While approving the house loan, the amount approved should not exceed the amount determined by the mortgage evaluation.

For this, the loan will be given in accordance to one of the three in which the loan amount is the least.

According to the first method, Rs 7.5 million rupees will be given on the basis of the mortgage value, in the second method, an amount equal to the salary of the contributor for 15 years will be provided and in the third method, an amount equivalent to the salary of the remaining period until the contributor reaches the age of 60 years will be provided.

Likewise, the guidelines also has provision for the contributors’ educational allowance. Educational leave is arranged for contributors who have contributed for at least 36 months to the fund and who have at least two years remaining before compulsory retirement based on age or length of service. It is mentioned in the guidelines that such allowance can be provided to the contributor or his/her husband, wife, son, daughter for the purpose of higher education in educational institutions in the country or abroad. Such amount shall be either Rs 3.5 million or the actual expenditure demanded by the concerned educational institution, whichever is less.

The student's admission fee, monthly, examination, hostel or accommodation expenses, other fees specified by the relevant educational institution, educational material expenses, and travel and insurance expenses will be included in the said amount.

Arrangements have made so that the educational allowance taken by the contributor can be reapplied if he/she repays it.

The executive director of the fund, Kapilmani Gyawali, informed that the contributors who have contributed regularly for 36 months to the fund, will be provided the service via online from mid-July itself.