Borrowing in retirement in Congo-Kinshasa

Two separate Congolese pension funds

The National Social Security Fund pays the pensions of former private sector employees, while the National Social Security Fund for State Public Employees manages those of civil servants. The lender checks where the payments come from and how regularly they arrive.

Often modest pensions

For many Congolese retirees, the pension covers only part of the household's needs. Banks therefore sharply limit the amount lent, because the monthly payment must remain affordable without compromising spending on health care and food.

Having the pension paid into the bank

As with employees, having the pension paid into a bank account allows the instalment to be debited automatically. Without this, a bank in Kinshasa or Lubumbashi rarely agrees to lend to a retiree, whatever the amount requested.

How age caps the length of a Congolese loan

Each bank sets a maximum age at the end of repayment, often linked to the insurer. A 65-year-old retiree will get a shorter term than a young employee, which increases the monthly payment for the same amount borrowed.

More expensive death and disability insurance

Borrower insurance, required from an ARCA-licensed insurer, costs more with age. Some policies exclude borrowers above a certain age, making the loan impossible unless an alternative form of guarantee can be offered to the bank.

Former executives and mining sector retirees

Former executives of large companies, of Gécamines or of foreign firms sometimes have supplementary pensions. This higher income makes access to credit easier when it is paid regularly, documented and received into a bank account.

Pension advances for small needs

For a one-off expense such as medical care, a funeral or house repairs, some Congolese banks grant an advance repayable over a few months of pension. It works very much like the personal loan in the DRC.

Using titled property

A retiree who owns a house with a registration certificate can offer it as collateral. This allows a larger amount, but puts the family home at risk in case of default, a decision best thought through together with the heirs.

Retirees and small trading

Many Kinshasa retirees supplement their pension with a small shop or livestock rearing. A microloan based on this activity is sometimes easier to obtain than a bank loan, with modest amounts and frequent instalments.

Late pension payments

Delays in pension payments, reported on several occasions in the public sector, worry lenders. An instalment debited from an account without funds triggers penalties, which is why it makes sense to keep a small cash reserve on the account.

Brazzaville pensioners and the CFA franc

In Congo-Brazzaville, retirees belong to other pension funds and receive their income in CFA francs. The guide to the retiree loan in Congo-Brazzaville shows how neighbouring banks actually handle these applications in practice.

A commitment to fit into the household budget

Before borrowing, a retiree should add up the pension, rents received, family support and fixed household expenses, then keep a reserve for emergencies. The general guide to credit in the DRC recalls the rules of prudence and the licensed institutions to favour.

Applying for credit as a pensioner in the DRC

1. Have your CNSS or CNSSAP pension paid into an account at the bank you are targeting.
2. Work out an affordable monthly payment while protecting health and housing expenses.
3. Ask about the maximum age and the death insurance conditions that apply to the loan.
4. Gather your pension certificate, payment statements and identity document, then submit the application.
5. Sign the offer only after checking the total cost, insurance included.

What a loan to a retiree costs in the Democratic Republic of the Congo

Papers a retired borrower must provide in the Congo

• Valid identity document
• Pension certificate issued by the CNSS or the CNSSAP
• Bank statements showing pension payments
• Certificate of residence
• Insurer's health questionnaire, if requested
• Registration certificate of the property if it is offered as collateral

Credit pitfalls for Congolese retirees

• Borrowing on behalf of a relative by pledging your own pension, then bearing the unpaid instalments alone.
• Mortgaging the family home without telling the heirs, a source of conflict after death.
• Ignoring the possible months-long delays in pension payments and incurring penalties on the account.
• Handing your card and PIN to a middleman who promises to get a loan released.
• Responding to a call claiming to come from the CNSS and asking for fees to update a file.

Lenders to contact

• Rawbank: Congolese commercial bank offering banking services to individuals and professionals, with dedicated credit lines for financing micro, small and medium enterprises.
• Rawbank: Major Congolese commercial bank allowing customers to submit an online credit application, for individuals as well as businesses and organisations.
• Trust Merchant Bank (TMB): Congolese commercial bank with a presence across many provinces, active in lending to individuals, small businesses and micro-entrepreneurs.
• Advans Banque Congo: Microfinance bank of the Advans network in the Democratic Republic of Congo, financing micro, small and medium enterprises, notably in Greater Katanga.

Credit and pensions in Congo-Kinshasa: your questions