Personal Finance 101: EPF Account 2 can now be used to obtain personal financing
PM Anwar announced this plan earlier
Article earlier for reference: EPF savings as collaterals for loans Briefly, Prime Minister Datuk Seri Anwar Ibrahim today clarified that the plan to allow Employees’ Provident Fund (KWSP) contributors to use their savings as collateral for loans would not involve any withdrawals from their savings. Now, we have news that the EPF is ready to implement this EPF Account 2 for loans and they have finalised the mechanism and the terms and conditions for EPF members who want to do so.
Article in nst.com.my EPF said that the Account 2 support facility, aimed at helping members apply for personal financing from banking institutions would be implemented in two phases. First, members who meet eligibility criteria may apply through participating banks, including MBSB Bank Bhd and Bank Simpanan Nasional (BSN).
The EPF may consider adding more participating banks in the future. Phase 1, which will begin on April 7, 2023, will remain open for one year. Eligible members who are 40 or older may apply, subject to the readiness of participating banks. EPF said the start date for Phase 2 for members under 40 years of age would be announced in due course. Do read in full here: Article in nst.com.my
Reminder. EPF is really for retirement.
I am not part of those who are asking for EPF withdrawals. Yes, I know MANY who did the withdrawals are because of many other reasons than the fact that they need it for emergency purpose. Just need to remember that the loan we take today would still have to be repaid in the future. IN other words, we are still using our retirement funds well in advance and this is not a good news later on. Well, since this is the case, just have to go on with it and hopefully many would be savvy enough to know why EPF only allowed withdrawal when a member retires.
Property News Malaysia? Sign up for daily investment news updates (FREE since Nov 2013 and FOREVER). Alternatively, Follow me on Telegram here.
Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles. Else, follow me on Twitter here.
Next suggested article: When rates rise, buying falls, financial logic right?
You must log in to post a comment.