The Minister of State, Prime Minister’s Office, Labor, Youth, Employment and Persons with
Disability had on 8th of March 2024 vide GN No 141/2024 published the Social Security Schemes
(Use of Member’s Benefit Entitlements as Collateral for Home Mortgage) Regulations, 2024. These
Regulations permit a member of a social security scheme, say NSSF, to assign a proportion of
his benefit entitlements from the Fund to be used as collateral for a home mortgage.

Below are some of the notable provisions of the Regulations;

  1. A member of a social security scheme may assign a proportion of his benefit entitlements from the Fund to be used as collateral for a home mortgage granted or to be granted by the institution. The purpose of that mortgage should be to construct a residential house on immovable property in respect of which he obtained ownership, purchase a residential home or improve, alter or carry out repairs to his house.
  2. The portion available to a member as collateral for the home mortgage shall be either an amount not exceeding fifty per cent of the benefit entitlement to an eligible member at the time of the application or the purchase price of the property, which shall not exceed the market value of the property, whichever is less.
  3. Access to collateral by members is upon the member’s fulfilment of certain conditions,
    namely, the applicant must be a Tanzanian citizen, an eligible member, and the validity
    of the collateral shall not go beyond the member’s compulsory retirement age.
  4. Any institution willing to offer loans against social security collateral must obtain
    approval from the Division responsible for social security within the Ministry
    responsible for social security matters.
  5. The house to be constructed or repaired shall be made the first collateral to the secured
    home mortgage.
  6. Enforcement of collateral against the member’s scheme shall only be enforced in cases
    of default where the institution [creditor] has provided adequate evidence that all recovery means, including the use of the first collateral subject to the terms of the agreement, have been thoroughly and reasonably exhausted.
  7. Disputes between members and institution [creditor] are to be mediated by the responsible Fund.


This article is not intended to replace professional advice. No one should rely exclusively on
the information provided as a substitute for seeking professional advice. The writers or the Firm
are not liable for any use of the information contained herein and do not guarantee the
accuracy of its contents from the date of publication to the date of usage.
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Dar es Salaam, Tanzania