Search for your Fund Name - Eg: "Motor Industry Pension Fund" and the Fund administrators page with contact info will be in the search results
Can I borrow money from my pension fund?

Can I borrow money from my pension fund?

We are often asked if a fund member can borrow from the fund that they contribute to or use the fund as security against a loan from a financial institution.

You cannot use your fund as security under any circumstances. This is specifically laid out in the Pension Funds Act.

If your fund rules permit, you may borrow from the fund but this is restricted to borrowing money for your primary residence and other than that, the only time you have access to your fund is when you retire or resign.

The interest on a loan from your pension fund is determined by the fund administrators.

Be aware, there are very special circumstances under which a loan for property related uses can be made and the funds rules must allow for it. It must also be remembered that a pension fund is not a bank and unless your personal fund has enough value, you will not be able to loan more than that.


22 Responses to “Can I borrow money from my pension fund?”

  1. I like to borrow money in my retirement fund how can I ? Speak to HR or Who must I speak to?

  2. Amanda says:

    One of my clients is going through a divorce and she is entitled to half of the Pension Fund. can she withdraw it from his pension? or how does it work?

    • admin says:

      Hi Amanda, A copy of the settlement or order will need to be sent to the fund administrators and the administrators will then make the arrangements for the payout.

  3. Boitshoko Monchonyane says:

    hey, I would like to know about the new legislation on pension fund act, how is it going to affect my provident fund?

  4. Lorraine says:

    I need to knw , if our divorce is pending can my husband make a loan on his provident fund.and what if he makes 5 he loan and do get the money , will I be in title to get my half share of pension fund .I do need assistance

  5. dimakatso says:

    Can i surender my retirement annuity

    • admin says:

      Hi, no, you cannot surrender a retirement annuity unless you are emigrating or the surrender value is under R7500.

  6. Msebenzi says:

    Hi admin. In pension backed loans, can I borrow money to pay transfer fees, and attorney fees when buying a home.

    • admin says:

      The rules are different for the various funds. Please use the search box to find your fund administrator and make contact with them directly.

  7. Grace says:

    Can it be possible to get my monthly income in a fixed amount may be I get the money of 7 months so that I can pay the fees for my kids

    • admin says:

      Hi Grace, you would need to check with the administrators of your fund. Every fund has a set of rules which may or may not allow the members to make loans. Please use the search box on to search for your fund name and you will find the asministrators information.

  8. Melanie says:

    Good day,

    Please assist. My son’s father still has funds lying in his Pension fund – from a previous employer. He is in arrears with several thousand rands (maintenance of our child). He is currently under Debt review and cannot even make an arrangement to pay-off the arrears. How do I go about getting access to the arrears funds from his Pension Fund value?

    Also, is there a way to obtain a court order for future maintenance?

    • Hycinth says:

      I would like to borrow money from my pension fund,but I’m not willing to resign from my job any time soon,and I want to make long term repauments,is that possible.

      • admin says:

        Hi, it is possible to borrow money from your pension fund but depends on the scheme rules. It is also possible to use your fund as security for a loan if the rules allow. Find out from the fund administrators what the rules say about loans and security.

  9. J says:

    Good day administration

    I got fired a week ago how can i go about getting a loan on my provident or pension fund for my kids school fees please.
    Tx J

  10. Tiny says:

    Hi can i borrow money from my pension to pay of all my debt?

  11. Lie says:

    Can you borrow from your provident fund for house renovations if you are under debt review

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