If they cannot repay the loan by age 55, their money in EPF will be used to pay off the loans.
Their savings in EPF will serve as collateral and they will only be charged with interest of between 4% and 5% , instead of the usual 8% to 15%.
“Under Phase 1 of the facility, all Malaysian EPF members below 55 can submit an advance notice for ‘Age 50 or Age 55 Withdrawal’, provided they have a minimum of RM3,000 in their EPF Account 2.The Finance Ministry had announced on March 2 that the facility was aimed at helping EPF members apply for personal loans from banking institutions.
Participating banks include MBSB Bank and Bank Simpanan Nasional , with more banks possibly added in future. It also said if a member makes an advance notice for Age 50 Withdrawal, EPF will pay the principal and accumulated dividend from Account 2 into the member’s financing account with the bank at any age between 50 and 54, as chosen by the member, subject to the maximum tenure of up to 10 years.
The EPF also said members’ savings would remain intact in EPF Account 2, and continue to receive annual EPF dividends, allowing members to take advantage of compounding their retirement nest egg while still addressing their short-term financial needs.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Sekolah menengah terbeban hutang cetak UASAKebanyakan sekolah terpaksa menanggung hutang percetakan itu yang berjumlah antara RM2,000 hingga RM4,000.
Read more »
EPF: Members may tap into Account 2 for loans via advance application for Age 50 or 55 Conditional WithdrawalKUALA LUMPUR, April 3 — The Employees Provident Fund (EPF) today said its members may use savings in EPF Account 2 to apply for personal financing from banking...
Read more »
EPF announces terms for Account 2 support facility programme initiativePETALING JAYA: The mechanism and the terms and conditions for the Employees Provident Fund (EPF) Account 2 Support Facility to obtain personal financing will be implemented in two phases - with Phase 1 opening for members who are 40 and above on April 7.
Read more »
Perikatan MPs stage walkout after EPF withdrawal debate motion deniedKUALA LUMPUR, April 3 — A group of Perikatan Nasional (PN) MPs have walked out of the Dewan Rakyat in protest after Deputy Dewan Rakyat Speaker Alice Lau turned down their...
Read more »
Perikatan MPs stage walkout over EPF withdrawals | The Malaysian InsightGroup argues with deputy speaker over refusal to allow motion to proceed.
Read more »