Using EPF savings as collateral for loans is risky

PRIME Minister Datuk Seri Anwar Ibrahim announced in the Dewan Rakyat on Thursday that contributors who are in dire straits would be allowed to take up loans from a bank with collateral from their Account 2 Employees Provident Fund savings, “EPF-guaranteed bank loans for those in bad financial standing, says PM” (The Star, March 9; online at

Using EPF savings as collateral for a bank loan is risky and should not be considered. What would happen if the borrower failed to make the required repayments? His EPF savings will still be reduced because the sum owed will eventually be taken out of his account.

Start your ads-free experience now!

Monthly Plan


Annual Plan


Billed as RM148.00/year

1 month

Free Trial

For new subscribers only

Cancel anytime. No ads. Auto-renewal. Unlimited access to the web and app. Personalised features. Members rewards.
Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Letters

Poor experience at RTD branch
Specialists issue solution in sight
Train our teachers, don’t hire outsiders
Don’t ignore their human rights
Viral video on secret conversion concerning
Stop assaulting our ears
ART is not all it’s hyped up to be
Stay the course with subsidy rationalisation
DLP upholds Bahasa Malaysia
Complexities of urban poverty

Others Also Read