EPF sets terms for borrowers

The Star Online


Saturday December 15, 2007

EPF sets terms for borrowers

KUALA LUMPUR: The Employees Provident Fund (EPF) announced yesterday that members with a minimum balance of RM600 in their Account 2 will be able to withdraw their savings for payment of their monthly housing loan instalments beginning Jan 1.

EPF senior general manager (organisation development) Hizwani Hassan said the minimum monthly withdrawal that can be made was RM100 for a period of not less than six months, while the maximum amount should not exceed the total monthly housing instalment.
“The savings in Account 2 allocated for this withdrawal cannot be used for other withdrawals,” he said in a statement, adding that members must also be below the age of 55 and not have any housing loan arrears.

The monthly withdrawal facility, announced in the 2008 Budget, allows members to withdraw their savings from Account 2, with the payment being made directly to members’ personal bank accounts on a monthly basis.

Currently, members are allowed to withdraw from their Account 2 for the purpose of building or purchasing a house and settling their housing loan.

Under the conditions for such withdrawals, members must either be the purchaser or builder, and the borrower as well as owner of the house or shophouse with a dwelling unit.

Members should also have an existing housing loan from an approved financial institution, and the house must be mortgaged and fully disbursed by the financial institution.

He said the EPF would revoke the monthly instalment withdrawal if the member had a non-performing loan with a financial institution, the loans have been revoked or redeemed, the house has been sold, auctioned or transferred to another party, or if the member has been convicted of cheating by submitting fraudulent documents or information for the withdrawal. – Bernama