Almost half of 74,392 applicants qualify for MBSB Bank’s FSA2 loans amounting to RM722m

• In a statement on Saturday (April 15), EPF chief executive officer Datuk Seri Amir Hamzah Azizan said the number of applications for FSA2 is expected to increase with the launch of Bank Simpanan Nasional’s (BSN) MyRinggit Insan-i facility on the same day.
• Presently, MBSB Bank and BSN are the only two participating banks offering the FSA2 facility.

KUALA LUMPUR (April 15): The Employees Provident Fund (EPF) said almost half or 34,643 of the 74,392 applications received under MBSB Bank’s Ihsan-i Account 2 Support Facility (FSA2) are qualified to obtain loans amounting to RM722 million.

In a statement on Saturday (April 15), EPF chief executive officer Datuk Seri Amir Hamzah Azizan said the number of applications for FSA2 is expected to increase with the launch of Bank Simpanan Nasional’s (BSN) MyRinggit Insan-i facility on the same day.

Presently, MBSB Bank and BSN are the only two participating banks offering the FSA2 facility.

“We are happy to have both MBSB Bank and BSN supporting the FSA2, which we believe would help members with temporary liquidity issues to obtain cash flow through personal financing but without causing serious impact on their retirement savings,” said Amir.

He noted the confusion among some EPF members regarding the need for monthly repayments towards the personal loans. 

“We want to clarify that this facility is targeted towards EPF members who have savings in Account 2, and are supported by a reasonable income to ensure they can afford the personal financing and 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 loans are repaid on time,” he added.

In the statement, the EPF reiterated that applications will remain open for one year, allowing EPF members ample time to apply in advance for Age 50 or Age 55 conditional withdrawals. 

“Members are required to pay the monthly repayments as per their agreements with the banking institutions,” it added.

The FSA2 was announced by the EPF to enable its members to apply in advance for Age 50 or Age 55 conditional withdrawals in obtaining personal financing from the participating banking institutions, namely MBSB Bank through its shariah-compliant Ihsan-i, and BSN through MyRinggit Insan-i from April 2023.

The eligibility amount for the personal financing is based on the savings amount in Account 2, with a minimum financing amount of RM3,000 and a maximum of RM50,000. Members can apply for the personal financing online through MBSB Bank or BSN.

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

During Phase 1, eligible members who are 40 years of age or older may apply, subject to the banks' terms and conditions. 

The withdrawal amount as applied under the Age 50 or Age 55 conditional withdrawal will be made to the member’s account at the bank when the member reaches the age of 50 or 55 years in accordance with the member’s choice of withdrawal age.

Members can visit http://fsa2.kwsp.gov.my/ to check their eligibility for the advance application for Age 50 or Age 55 conditional withdrawals, and the amount they can apply for under the facility. Additionally, frequently asked questions and corresponding answers related to the facility are also available on the website for members to refer to.

Members are encouraged to register or update their mobile phone number via the self-service terminal available at any EPF branch for the purpose of receiving a transaction authorisation code (TAC) to verify their identity when conducting transactions.

For more information on the FSA2, visit the EPF website at www.kwsp.gov.my, or call the EPF contact management centre at (03) 8922 6000.