The Member Education Loan was started on march 1st 2006 aimed to help NPPF members finance their children's education or their own education.

Objectives:

• To encourage and assist the members in their education and in educating their children.

Eligibility:

• The member should have been contributing to the NPPF for a period of not less then 3 years.
• The minimum floor of the member's accumulated PF balance should be Nu.30,000/-
• However, spouse can be co-borrower by morgaging the accumulated PF balance as well.

Quantum:

• The maximum loan amount shall not exceed the Provident Fund balances of the members. However, a loan to the maximum amount of Nu.1,000,000/- could be sanctioned with the mortgage of land/buildings

Repayment Capacity:

• repayment capacity is calculated at 60% of your net pay/ 100% if the spouse is also working.

Repayment Due Date:

• 1st day of the month following the next month.E.g.Loan availed on any day of the month of March EMI is due on the 1st of may,payable within the 20th of May.

Interest:

• the rate of interest is 10% p.a. computed at the end of every quarter using daily product method.

Tenure and Repayment:

• the maximum tenure of the loan shall be 15 years/retirement age whichever is earlier.
• repayment shall be on the basis of Equated Monthly Installment (EMI) deducted from member's salary.

Security:

• Primary: member's accumulated PF balance
• Secondary:Land & buildings.