Subscribers can now take loans from the savings accumulated in the Universal Pension Scheme. Loan applications must be submitted online. Once approved, the loan amount is transferred directly to the subscriber’s bank account.
The National Pension Authority introduced this service one month ago. Since then, loan applications have started to come in. As of yesterday, Sunday, 92 applications had been submitted, of which 11 were settled, according to sources at the National Pension Authority.
What needs to be done
According to the National Pension Authority, loan applicants must be regular in paying their contributions. The loan must be repaid in 24 installments over two years. A 2 per cent service charge is deducted along with the final installment, but this fee does not go to the Pension Authority. Instead, the service charge is credited back into the subscriber’s account.
It has been learned that to be eligible for a loan, a subscriber must have at least Tk 100,000 deposited in their account. Loans can be taken ranging from 5 to 50 per cent of the total deposited amount. Payment of contributions up to the month prior to applying for the loan is mandatory.
Subscribers can apply for loans by logging into the National Pension Authority’s website (www.upension.gov.bd). After logging in, they need to click on the “Loan Application” button from the menu bar, which opens the application page. At the bottom, clicking on the “Apply” button brings up the loan amount option. After selecting the repayment installment schedule and clicking “Complete Application,” the application process is finalised.
Golam Mostafa, a member of the Pension Authority, told Prothom Alo, “The loan facility was there from the beginning. But after completing all preparations for online applications and approvals, the service was launched one month ago.”
When asked why the number of settled cases is still low compared to the number of applications, Golam Mostafa said, “After an application is submitted, one officer reviews it and another officer approves it. They are currently abroad for a short training programme. Once they return, the approval process will gain momentum.”
The four pension schemes
According to sources at the National Pension Authority, so far, around 375,000 people have enrolled across the four Universal Pension schemes. The currently active schemes are Progoti, Surakkha, Samata, and Probash. Through these, working people, individuals with irregular income, and expatriates are able to come under pension facilities.
According to the Finance Division of the Ministry of Finance, in 2020 the number of people over the age of 60 in Bangladesh was 12 million, which will rise to 31 million by 2041. Keeping their needs in mind, the Universal Pension Scheme was formally launched in Bangladesh on 17 August 2023.
On 13 August this year, interim government finance adviser Salehuddin Ahmed, while inaugurating the “UPension” app, said that efforts must be increased to promote the Universal Pension Scheme.