FNPF members can withdraw from their preserved account from next April to make payments for home loan

Parliament has today unanimously passed the Home Loan Assistance for the payment of mortgage money and related matters Bill which will allow a FNPF member to withdraw an amount from his or her FNPF preserved entitlement after 31st March next year to make payments for home loan.

According to the Act, this withdrawal from the preserved account can only take place after the bank makes every possible effort, and exhausts every available avenue, to provide relief of the mortgagor’s payments, including to assist the mortgagor in having his or her payments deferred to a later time.

This withdrawal from the preserved account can only take place if the mortgaged property is the members principal place of residence and not any other investment.

Minister for Economy, Aiyaz Sayed-Khaiyum says the maximum amount payable from an FNPF member’s preserved entitlement is 50% of the balance and the maximum amount payable from the general account is 100% of the balance.

While contributing to the motion, National Federation Party Leader, Professor Biman Prasad says he thinks the banks can provide enough timeline so that people do not have to go and withdraw funds from FNPF to pay for their home loans.

SODELPA MP, Niko Nawaikula says many bills are now being brought into parliament and this is a sign of laziness and complacency on the part of the government and some Ministers have been doing other things than their primary role as legislators.