KUALA LUMPUR – The Employees Provident Fund (EPF) today announced that 34,643 applications, or nearly half of the 74,392 received under MBSB Bank’s Ihsan-i Account 2 Support Facility (FSA2) as of yesterday (April 14), are eligible applications for a total sum of RM722 million.
Chief executive officer Datuk Seri Amir Hamzah Azizan said the agency is expecting the number of applications for FSA2 to continue to rise, especially with Bank Simpanan Nasional’s (BSN) launch of 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 flow through personal financing but without causing serious impact to their retirement savings,” he said in a statement today.
Amir Hamzah clarified that the facility is targeted towards EPF members who have savings in Account 2 and are supported by a reasonable income to ensure they can afford the personal financing and be committed to the monthly repayments without compromising their retirement income adequacy and security.
“We understand that there has been confusion among some EPF members regarding the need for monthly repayments towards the personal loans,” he said, adding that the monthly repayments are necessary to ensure that the loan is repaid on time.
The retirement fund explained that the eligibility amount for 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 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 the EPF based on the approved financing amount.
“During 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 years and 55 years in accordance with the member’s choice of withdrawal age,” it said.
EPF said applications will remain open for one year, allowing its 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 Age 50 or Age 55 Conditional Withdrawal and the amount they can apply for under the facility.
Additionally, frequently asked questions and corresponding answers related to the facility are also available on the website for members to refer to. – Bernama, April 15, 2023
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