KUALA LUMPUR: EPF today announced that 34,643 applicants have been found to be eligible for RM722 million in personal financing.
This number is nearly half of the 74,392 applications received under MBSB Bank’s Ihsan-i Account 2 support facility (FSA2) as of yesterday.
EPF CEO Amir Hamzah Azizan said they expected the number of applications to continue to rise, especially with a similar scheme launched under Bank Simpanan Nasional’s BSN MyRinggit Insan-i today.
“We are happy to have both MBSB Bank and BSN supporting the FSA2, which we believe would help members with temporary liquidity issues to obtain cash through such personal financing but without causing serious impact to their retirement savings,” he said in a statement today.
Amir said the facility is targeted at EPF members who have sufficient savings in Account 2 and still have a reasonable income.
“This is to ensure they can afford the personal financing and are committed to the monthly repayments (to the bank), without compromising their retirement income.
“We understand that there has been confusion among some EPF members regarding the need for monthly repayments for these personal loans.”
He said the monthly repayments are necessary to ensure that the loan is repaid on time.
The eligibility amount for the personal financing is based on the savings amount in Account 2 — with a minimum financing amount of RM3,000 and a maximum of RM50,000.
Members can apply for the personal financing online through MBSB Bank or BSN.
Once approved, members can submit an advance notice for Age 50 or Age 55 conditional withdrawal to EPF based on the approved financing amount.
“In Phase 1, eligible members who are 40 years of age or older may apply, subject to the bank’s terms and conditions.
“The withdrawal amount, as applied under the Age 50 or Age 55 conditional withdrawal, will be made to the member’s account at the bank when the member reaches the age of between 50 and 55 in accordance with the member’s choice of withdrawal age,” it said.
EPF said the loan facility will remain open for one year.
This is to allow members ample time to apply in advance for the Age 50 or Age 55 conditional withdrawal.
Members can visit http://fsa2.kwsp.gov.my/ to check their eligibility for this facility and the amount they can apply for.
Additionally, frequently asked questions and answers are also provided on the website. - FMT
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