Easy Way To Access NHF Loan

THE LEGAL FRAMEWORK OF NHF BY FEDERAL MOTGAGE BANK OF NIGERIA

Act 3 of 1992 established the National Housing Fund (NHF).
Section 2 of the Act outlines the aims and objectives of the fund. Sections 20, 21 and 22 defines the offences and penalties for non-compliance. Act 3 is being amended to bring it in line with new realities aimed at strengthening the National Houding Fund.
Access the abridged version of the NHF Act.

ABOUT THE FUND
AIMS & OBJECTIVES OF NHF

Mobilization of funds for the provision of affordable residential houses for Nigerians.
Commercial and Merchant Banks to invest 10% of their loans and advances portfolio.
Insurance Companies are mandated to invest 20% of non-life and 40% life funds in the housing sector with 50% of these directly in the funds.
Financial contributions of the Federal Government.

FUNDING OF NHF

Mandatory contribution of 2.5% of monthly income of Nigerians earning =N=3000 and above per annum.
Commercial and Merchant Banks to invest 10% of their loans and advances portfolio.
Insurance Companies are mandated to invest 20% of non-life and 40% life funds in the housing sector with 50% of these directly in the funds.
Financial contributions of the Federal Government.

BENEFITS OF NHF

Housing loan of up to 90% of the cost of the house.
Interest on loans remains fixed throughout the life of the mortgage at 6% p.a.
Long period of repayment of up to 30 years.
Contributions can serve as additional old age security.
Up to N15 million can be borrowed.
Refunds with 2% interest on retirement.
Loan repayment is about the same as a typical monthly rent.
Every contributor has: a lifetime registration number, a passbook for personal recording of contributions and the account statement.

ELIGIBILITY OF NHF

Registration via NHF 1 (employer) and NHF 2 (employee) forms.
Deducted monthly contributions remitted to FMBN promptly (At least 6 months contributions should be made)
Passbook to be updated by employer and is transferable from one employment to the other.
Yearly statement of cumulative contributions plus accrued interest
Apply through any accredited Primary Mortgage Bank(PMB)
Applicant must provide satisfactory evidence of regular income.

PROCEDURE FOR REGISTRATION FOR NHF

All Nigerians in employment, whether self-employed or in paid employment, are required by the NHF Act No.3 of 1992 to contribute 2.5% of their basic salary/income to the fund. The Procedure for registration is as follows:
The Federal Mortgage Bank of Nigeria (FMBN) will supply Employer Registration Form (NHF1) to employers.
Employers will complete form NHF1 and return to the nearest branch of the Federal Mortgage bank of Nigeria.
Federal Mortgage Bank of Nigeria will register the Employer and issue an employer’s registration number.
Federal Mortgage Bank of Nigeria will issue form NHF2 to employers for completion by employees or directly to self employed or individual.
Employee will complete the form NHF2 and return to the employer.
The employer or self-employed individuals will return completed form NHF2 to Federal Mortgage Bank of Nigeria.
Federal Mortgage Bank of Nigeria will register Employees on Form NHF2 and allocate employees participation number to each employee/self-employed individual.
Federal Mortgage Bank will issue a passbook to each of the registered employees where the monthly deduction of his/her 2.5% basic salary will be posted by the employer
At this point, an employee is now a registered participant of the National Housing Fund.
Employer will commence deduction of contributions at source. Such deductions/contributions are remitted to Federal Mortgage Bank of Nigeria with schedule of payment indicating the amount contributed by each employee and the period covered.
Self–employed contributors will also commence monthly remittances of contributions to FMBN.
Federal Mortgage Bank of Nigeria will accept contributions and issue receipts for payments.

CONDITIONS FOR REFUND

Refund is made to a contributor who has attained 60 years of age or has put in 35 years in service.
Refund is also made to a contributor that has obtained a loan, liquidated the loan and has attained the age of 60 years or have put in 35 years in service.
Retired from employment and becomes incapable of continuing the contribution to the Fund.
For applicants from the underlisted professions, the retirement ages are as stated below:
– Professors, Judges and Medical Consultants – 70 years of age
– Academic, Non-Academic Staff, Judicial Staff – 65 years of age
– Military Officers – 62 years of age
Refund is made to the next-of-kin of a contributor in case of a deceased contributor.

Documents required for refund of contribution
Application letter requesting for refund of contribution.
Letter of offer of appointment.
Birth certificate or Declaration of age certificate.
Completed NHF Contribution withdrawal forms.
Bank Account details through which refund would be paid.
Medical report of incapability to continue contributions due to failing health
Letter of administration & Death Certificate (in case of a deceased contributor)
Evidence of contribution. (Receipt for self-employed contributor)
Biometric Verification

Source :FMBN

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