EPF members who are eligible to apply for loan from the bank using their EPF Account 2 will still need to make monthly repayments and repay the loan amount based on the chosen repayment period.
According to sources who spoke to Metro Daily via WhatsApp, the loan application process is subject to bank assessment and review and also depends on the bank's lending framework. KWSP does not determine the amount of financing granted or the interest rate levied.
Terms And Condition For Personal Financing Using EPF Account 2
Eligible members can apply from banks and financial institutions that participate in this program, including the Malaysian Building and Construction Bank (MBSB) Bank, National Savings Bank (BSN). KWSP will also consider allowing more banks to participate in the future.
The announcement said that the first phase will start on the 7th of this month and will last for one year. Eligible members aged 40 and above can apply to participating banks, subject to the readiness of the participating banks. The application date for the second phase will be announced later, which is open to members under the age of 40.
As for members under the age of 55, who would have been able to apply earlier at the age of 50 to 55, they can submit a Notice of Withdrawal. But it also depends on the amount in the second account, and they also need to have at least RM3,000 in the account. The maximum loan amount is RM50,000 and the amortization period is up to 10 years.