Haha Unker senang Kay poh. My thoughts.

If your own investments (outside kwsp forced savings) has consistently demonstrated dividends return > kwsp. Then it suggests, you have good investment skills/instincts.

Otherwise, I think it's pure gamble and/or false hope....poor judgement to execute the kwsp loan.

Open question...there's another category of forumers, to pay off loans first, or invest with the kwsp $$$.

Unker oso not very bright, young days swimming has resulted in dark complexion.

Unker very confused, wouldn't upon a member birthday age #55 akaun 1 & 2 be automatically converted to akaun 55?

Or, the conversion to akaun 55, only happens at 1 Jan following year?

For those FIRE n age b4 50 can actually use this 50k to pay for car purchase cos HP rate is like 3.75% (effective 7%).

Already check?
So fast 🤔

So basically BSN & MBSB need to cough out $$$ for the loan and collect the principal + interest after the person turns 50/55.

Thanks.

let's say you borrow 50k and then put straight back into EPF and gain the 5% dividend and you are only paying say, 4% of interest p.a.

Pay lumpsum directly at the age of 50 or 55. you earn the interest free, arbitrage, no reason not to go for it?

Only risk is when the dividend is actually lower than the interest rate.

thoughts anyone?

It makes perfect sense coz they have guranteed 4-5% interest. It's just 10 years and they will get everything even if a default happens. It's one of the best deal so far with 0 risk. They have no cash flow issue but lack of places to put thier cash to earn title at this current market. Where can you put to earn you 5% a year confirmed and 0 risk of losing money? Think about it. They got no risk at all.

FD is your money and not bank money. And FD rates are going down. FD means every 12 months to 18 months you will lose it. It's not thiers. Mass withdrawal (bank run) = death of bank. In Malaysia it's low probability.. But it's not zero. This loan you cannot run. Lock in period is there and you are guranteed to get your money back. So it's very very profitable. Let's imagine next year FD rates 3% which happened before and can easily happen again. Your kwsp loan still 4.14% (your number up there). What risk is there? If you loan 10 years they are getting FD from you next 10 years. Easy money. Still don't see the picture?

I dont mind giving out loans with such a rock solid guarantee. Compound interest for non payment of schedule payments will be enough for me. Better than buying bonds...

Maybe initial open only to gomen related first...
So naturally BSN first... MBSB is private right???

Nobody said no need payment, and nobody said no compound interest. The devil is in the details.

This was just announced like 2 weeks ago. Probably major banks will.need more time to go through all their bureaucracy.

Probably need more time??

Whatever...
EPF did mention later more banks would also offer it..

So probably for below 40yo groups ☺️

Most major banks wouldn’t wanna go through low profit and high expense venture 🤦‍♀️
In fact if they wanna do it EC should be there as well 🤦‍♀️

It is more rush through job while catering certain ppl 🤦‍♀️

Variable rate applied to all banks or certain banks?

The problem is... I'm not 40 yet...     

https://www.freemalaysiatoday.com/category/...ancial-adviser/

Nothing surprising....
Banks sure profit from this loans thingy