KUALA LUMPUR: A total of 74,392 contributors have applied for the Employees Provident Fund (EPF) Account 2 Support Facility (FSA2) as of Friday (April 14) since it opened on April 7.
However, only 34,643 are eligible, involving a total of RM722mil.
In a statement on Saturday (April 15), its chief executive officer Datuk Seri Amir Hamzah Azizan said they expect the number of applications for FSA2 to continue to rise, especially now that Bank Simpanan Nasional (BSN) has launched its BSN MyRinggit Insan-i.
"We are happy to have both MBSB Bank and BSN supporting the Account 2 Support Facility.
"We believe it will help members with temporary liquidity issues to obtain cash flow through personal financing without causing serious impact to their retirement savings.
“We understand that there has been confusion among some EPF members regarding the need for monthly repayments towards the personal loans.
"We want to clarify that this facility is targeted towards EPF members who have savings in Account 2 and are supported by a reasonable income.
"This is to ensure they can afford the personal financing and are committed to the monthly repayments without compromising their retirement income adequacy and security.
"It is essential to note that the monthly repayments are necessary to ensure that the loan is repaid on time,” he said.
FSA2 is a facility that aims to help EPF members obtain personal financing from banking institutions. So far, two banks are participating in FSA2 - MBSB and BSN.
It involves a maximum financing of RM50,000 (subject to EPF Account 2 balance) and a repayment period of up to 10 years.
Among the stipulated conditions is that the applicant must have a minimum amount of RM3,000 in EPF Account 2.
Members can apply for the personal financing online through MBSB Bank or BSN.
Once the personal financing is approved, members can submit an advance notice for age 50 or age 55 for conditional withdrawal to the EPF based on the approved financing amount.
During Phase 1, eligible members who are 40 and above may apply, subject to the banks’ terms and conditions.
The applications will remain open for one year, allowing EPF 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 the advance application.
For more information on the Account 2 Support Facility, visit the EPF website at www.kwsp.gov.my, or call the EPF contact management centre at 03-8922 6000.
