Only 50% of applicants qualify for EPF FSA2 financing

KUALA LUMPUR: A total of 74,392 contributors have applied for the Employees Provident Fund (EPF) Account 2 Support Facility (FSA2) since it opened on April 7.However, only 34,643 applicants are eligible, involving a total of RM722mil, as of Friday.

In a statement yesterday, EPF chief executive officer Datuk Seri Amir Hamzah Azizan said the number of applications for FSA2 is expected to continue to rise, especially now that Bank Simpanan Nasional (BSN) has launched its BSN MyRinggit Insan-i.

“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,” he added.

While there had been confusion among some EPF members regarding the need for monthly repayments, Amir Hamzah clarified that the facility is targeted at 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 added.

FSA2 is a facility that aims to help EPF members obtain personal financing from banking institutions. So far, two banks – MBSB and BSN – are participating in the programme. It involves a maximum financing of RM50,000 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.

Once the personal financing is approved, members can submit an advance notice for age 50 or age 55 for conditional withdrawal to EPF based on the approved financing amount.

Members can visit http://fsa2.kwsp.gov.my/ to check their eligibility.