Easier to withdraw EPF directly, contributors not burdened with loans, interest, says Jo Ghani
09 Apr 2023 12:06pm
Johari Ghani
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SHAH ALAM - It would be easier for contributors to withdraw their Employees' Provident Fund (EPF) savings directly rather than using the support facility to apply for a bank loan, said former deputy finance minister Datuk Seri Johari Ghani.
He said this is to avoid interest charged on the loan, further adding that the scheme requires time as bank carry out credit checks prepare legal agreements.
"If you borrow RM70,000, and say the interest is at five per cent per year, which is RM3,500.
"For 10 years, interest alone would come to RM35,000," he was quoted in Utusan Malaysia.
On March 9, the government introduced a method that allows EPF contributors to use their retirement savings as collateral to banks for financing purposes.
Last Monday, the EPF announced that contributors aged 40 to 54 can apply for a bank loan through the Account Support Facility 2 (FSA2) from 7 April this year.
