About Us

The Armed Forces Endowment and Loan Scheme

The Armed Forces Endowment and Loan Scheme (AFELS) is a provident fund jointly established by mutual consent under the provision of departmental investment. It is based on mandatory contribution and accrued interest. It serves as a combined long-term investment and savings. The future is unknowable. One of the greatest risks after a successful military career is economic insecurity. During our working lifetime sufficient provision must be made for our retirement. As a responsible institution we have the moral obligation to take tangible steps that will address both the immediate and long-term welfare needs of our personnel. In pursuance of this the Armed Forces Endowment and Loan Scheme is established under the provision of Departmental Investment as a mandatory endowment scheme for all serving personnel. 

AFELS

OUR LOAN SCHEME

Membership

Every member of the scheme has the following personal responsibilities:  Complete the personal data capture form AFELS Form F1  Provide accurate information on next of kin and beneficiaries  Communicate any changes in next of kin and beneficiaries  Communicate increase or decrease in their premium contribution  Request for their statement of account to keep track of their contribution

Loan

Loan is granted to an individual member at an interest rate of 10%. The amount of loan granted to any individual member will be determined by their annual salary. All loan applications must be on AFELS Form F4 and must be forwarded through the Chain of Command for approval by the Board of Trustees. Repayment of loan is deduction from source against monthly salary. Duration of repayment of loan is one year after receiving the loan. Old loans must be fully repaid before application for new loans.

Indemnity

Every member of the scheme has indemnity. Indemnity after two years of contribution is accrued interest plus total contribution to the scheme. Accrued interest is 25% of total contribution applicable only after two years of contribution to the scheme. Indemnity below two years of contribution is total contribution to the scheme for the period. Indemnity will be only triggered after a proximate cause has occurred and has been confirmed.

Governance

AFELS is administered by a Board of Trustees responsible for the management, investment and utilization of funds. The Directorate of the scheme is responsible for the day-to-day operations of AFELS. It is answerable to a Board of Trustees. The composition of the Board of Trustees is inclusive and well balanced. The Board of Trustees meet once every quarter. The Directorate of AFELS is audited annually.

Investment

We will maintain a policy of socially responsible and economically viable investment. We will invest in a way that seeks maximum return on investment at the lowest possible risks. All investments must be authorised by the Board of Trustees and safeguarded.

Contribution

Contribution to the scheme is mandatory for all serving personnel with three or more years of remaining length of service. Below three years of remaining length of service contribution to the scheme will be voluntary. The different rates of premium contribution are quoted on AFELS Form F1. Premium is choice based and will be deducted from monthly salary from source.