EPFO : For millions of employees in India, the Employee Provident Fund (EPF) provides a financial security cover after retirement. Commonly known as PF, it is a mandatory savings and retirement plan for employees.
Employees contribute 12% of their basic salary to this scheme, in which employers also contribute. This fund earns interest every year and this interest rate is decided by the government. Did you know that you can take a loan against your PF balance?
Can loan be taken against PF balance?
EPF scheme helps in creating a big fund for retirement. If needed, employees can withdraw up to 50 percent of the money in PF. Employee Provident Fund Organization (EPFO) allows withdrawal of money for personal emergency, buying a house, medical emergency, marriage. This facility is called EPF loan.
How to apply for EPF loan?
The process of applying for EPF advance online is very simple. Employees can apply through the EPFO ​​portal.
- Visit the official website of EPFO ​​(Unified Member Portal) and login by entering UAN, password and captcha.
- Select Online Services > Claim (Form-31, 19, 10C) option.
- Fill in the required information like name, date of birth and bank account details.
- Select the withdrawal reason from the dropdown menu.
- Enter the amount and submit the application.
- Upload the document and verify it with Aadhaar based OTP.
- EPFO will transfer the money within 7-10 working days after reviewing the application.
Who can take PF Advance (EPF Loan)?
- To get EPF advance, some necessary conditions have to be fulfilled.
- The employee must have a valid UAN (Universal Account Number).
- The employee should be an active member of EPFO.
- For withdrawal, it is necessary to fulfill the criteria set by EPFO.
- The withdrawal amount should be within the prescribed limit.
- The minimum service period condition must be fulfilled.
- Under what circumstances can you withdraw money from EPF?
- Medical Emergency
- Withdrawal can be made for treatment of self, parents, spouse or children.
- Withdrawal for marriage
- Withdrawal can be made for the marriage of self, siblings or children.
- Employees can withdraw up to 50% of their PF balance to buy or construct a house.
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