Use of EPF funds as loan collateral


TO address the issue of liquidity without compromising the social protection net in the long run, the Malaysian government has decided not to allow further unconditional withdrawals from the Employees Provident Fund (EPF).

Instead, a new mechanism has been introduced that enables eligible EPF members to obtain a loan with their EPF Account 2 serving as collateral. This move allows individuals above 40 years of age to get a loan at a lower rate because it is secured with lower risks.

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