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Pension Vs Loan - Investment - Nairaland

Nairaland Forum › Nairaland General › Investment › Pension Vs Loan (388 Views)

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Pension Vs Loan by lammyna(op): 10:27pm On Dec 07, 2020
I will like to ask question here please. Why is it that the pension certificate can't be used as collateral to apply for a loan?

For instance, an employee with over N3million in his pension account and he/she is trying to start a business but needs capital. At least after retirement, he/she is entitled to 25% of whatever contribution he/she has made.

An employee should be able to apply for a loan with a bank using pension certificate for him/her to start the business.

I need a professional advice.
Re: Pension Vs Loan by yomi007k(m): 11:08pm On Dec 07, 2020
Such employees are usually working with the government and you are not allowed to have a business besides your official job. *public service rules*. You can actually get a loan from government co-operatives firms.

Even if you are working with a private company or multinational, do you think they will want you to have your own business?

So, forget the idea.
Re: Pension Vs Loan by lammyna(op): 12:35pm On Dec 08, 2020
yomi007k:
Such employees are usually working with the government and you are not allowed to have a business besides your official job. *public service rules*. You can actually get a loan from government co-operatives firms.

Even if you are working with a private company or multinational, do you think they will want you to have your own business?

So, forget the idea.
My brother, someone can not be an employee forever. What if the money is used to set up someone's wife? At least, the money is his/hers.
Re: Pension Vs Loan by yomi007k(m): 12:36pm On Dec 08, 2020
lammyna:
My brother, someone can not be an employee forever. What if the money is used to set up someone's wife? At least, the money is his/hers.
The money is HIS.

If it's your wife do you think she will mention you ad the owner?

I don tell u wetin I know o.
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