Business - Featured - Local - February 23, 2021

Civil servants to register for GEMS loan fund before deductions

 

Government has finally opted that civil servants will first register for the Government Employees Mutual Savings (GEMS) loan fund as opposed to the initial option of deductions first.

The GEMS loan fund was recently introduced by government to rescue civil servants who have become the target of businesses in Zimbabwe because of their regular payments and have fallen prey to loan sharks and high-interest loans and hire purchase agreements.

The GEMS fund will operate in a way that government will put in seed capital of $100 million dollars and civil servants will contribute 2.5% of their salary to the fund. This will allow them access to low-interest loans from the fund expected to be between 2 and 7% at a time when the market charges as much as 30%.

Public Service Commission Secretary Ambassador Jonathan Wutawunashe said members will now register first as opposed to the initial option which advocated deductions first.

“Civil servants are given up to the end of this month and early March to register for the GEMS loan fund, which aims to improve public workers’ livelihoods through small loans,” he said.

Interested Government employees are required to register at their respective ministries, which will then submit lists to the Salary Service Bureau (SSB) for deductions that will commence in March.

Registered members will access short and medium term loans at a nominal rate of 10 percent per annum after contributing for three months.

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