How to get a loan against pension fund in Nigeria

Loan against pension fund – If you have been a civil/public servant with government or public establishment you should be conversant with the fact that there’s a Retirement Savings Account (RSA) running for you with a Pension Fund Administrator (PFA).

The essence behind a pension fund is to see you through the retirement process, with the aid of a pension fund you can fall back to the money and survive having retired from active service.

From the above, you could understand that there’s a predetermined time in which a contributor could access his/her fund, which is usually after retirement or at the age 50 years.

Read also: How to access your fund with Stanbic Ibtc Pension

If by any means you lose your job or wished to access part of your pension fund contribution before 50 years, this is the best guide that will walk you through the requisite process.

What is loan against pension fund?

Loan against pension fund refers to a circumstance that could warrant a contributor to seek out loan from a PFA being part of the sum contribution made by the contributor in his/her Retirement Savings Account (RSA).

This refers to a situation where a contributor will have a need for money before retirement, in a situation like this, a contributor may approach the PFA to grant part of the money being contributed.

While you may think that this is impossible and unattainable, in this guide I will show you how you can borrow from your retirement savings account.

Conditions for accessing a loan against pension fund

Kindly understand that you are required to meet any of the below criteria to qualify for borrowing from the RSA.

1. An arrangement where lump sum has been deposited by you into the RSA, you are at liberty to withdraw part of it before retirement

2. For contributors below 50 years, you have a lifeline to withdraw 25% of such contribution. This is given special consideration where the contributor loses his/her job, couldn’t secure any other job for a period of 120 days.

3. In event where a contributor has a mortgage loan in plans, you can withdraw about 25% of contribution too.

Loan against pension fund acquiring process

While there could be variation on how to secure/borrow from your pension fund among various Pension Fund Administrators, you are however required to meet certain pre-conditions to get a fraction of this fund disbursed, these conditions include,

  • You are mandated to provide letter of resignation or termination of appointment by your immediate past employer.
  • A pay slip as regards your PFA payments for the last three months.
  • A duly written letter of request stating the percentage of contrition you wish to access, max of 25% in this case
  • For public sector workers, kindly provide evidence of accrued pension rights
  • Your bank statement for the last six months at least
  • For private sector workers, you are required to provide a letter from your employer with recourse to full remittance made to your Retirement Savings Account
  • There should be a National Pension Commission retiree indemnity form for public sector workers.
  • A four passport photograph and a form issued by the PFA.

How to borrow from your pension fund for mortgage purpose

This applies to situation where a contributor who is still in active service wishes to access a percentage of his/her contribution for the purpose of buying land, asset, house, or building.

You must meet the following criteria to access this fund

  • You ought to have been an employee
  • Your contribution to your RSA must have been on consistent basis for the last 10 years
  • Debt to income ratio should be less than 33.3% of your monthly income

Documentation for a mortgage loan

  • Officially written application letter to access the RSA account
  • A mortgage loan offer letter, preferably from a mortgage bank
  • Copies of documents to the property by which the mortgage loan is granted
  • A confirmation letter by the mortgage bank aimed at ascertaining the worthiness of such transaction, accompanied by official stamp/seal

Read also: List of licensed PFAs in Nigeria [Pension Fund Administrators]

Frequently asked question

Can I borrow from my pension fund in Nigeria?

Yes you can borrow from your pension fund but under certain conditions which include

  • If you deposited a lump sum into your RSA and wished to have a fraction back
  • If you lose your job/out of regular employment for the past 4 months having lost your job
  • If you wish to obtain a mortgage loan you could have access a certain percent of pension contribution.
  • If you have a voluntary contribution

Can I use my pension as collateral for a loan in Nigeria?

NO, pension contributions are non-assignable, non-transferable and cannot be used as collateral for any loan. It is basically meant to serve you at old age or retirement when you can no longer actively cater for yourself.


The idea is that you cannot access your pension contribution except on retirement or having attained the age of 50 years. However, there are exceptions to this rule like when you make bulk contribution, you are out of employment for at least 4 months, and possibly looking to access a mortgage.

Read also: National Pension Commission (pencom): What you should know about Pension, offices and contacts addresses in Nigeria

It’s advised that you contact your Pension Fund Administrator for necessary guidelines in case you have challenges.

9 comments on “How to get a loan against pension fund in Nigeria

Raphael Orji
Tola Ogunsiku

“The idea is that you cannot access your pension contribution except on retirement or having attained the age of 50 years.”

Where do you place an individual who resigns before 50? Can he access the full pension?

Raphael Orji

Hi Tola,

Like you should have read from the guide, you are only entitled to 25% of your total contribution subject to requisite conditions in the event you are out of employment before 50 years.

Raphael Orji
Onyeke Victor

I found it difficult to get my 25% of my RSA , I have visited the pension office summited all the requirements seems to been avail , what should be my hope now sir? thanks

Raphael Orji

Hi Onyeka,

Having submitted the required documents, kindly confirm if you were advised to wait.

Raphael Orji
Tola Ogunsiku

Yea I read that.

But don’t you think that percentage is a tad too low given the harsh economic climate with people losing jobs almost on a daily??

Raphael Orji

Hi Tola,

That percentage is miserably embarrassing and not encouraging.

However, only the commission and its regulators know the rationale behind this inhuman decision.

It’s time to review that package upward.

Raphael Orji
Abiodun Egbedele

Good morning!
Presently I am over 50years still working, can I use my account to obtain loan and how much can I be giving as loan?

Raphael Orji

Hi Abiodun,

You can access loan against your pension fund.

However, the threshold is pegged at 25% of your contribution.

Kindly reach out to your “Pension Fund Administrator PFA” for the way forward.

Hope that helps?

Warmest regards and look forward to a happy retirement in view.

Raphael Orji

I need a loan wish to use my pension scheme account as to obtain the loan.


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