Get Loan from EPF Account, Apply EPF Loan from EPF India website, the employee ane employer can follow EPF Rules to getting Loan for Marriage, Education, Medical treatment, Purchase or construction of home and Purchase of plot from your EPF Account Balance…..
There are two types of loans secured (loans provided with security) and unsecured (loans provided with no security). These loans take time and even can be rejected due to some reasons. Financial emergencies come at any time so, as a last resort to help in the time of these financial emergencies which you don’t need to pay back.
Employee Provident Fund (EPF) loan
EPF (employment provident fund) is a nest egg that the government has made mandatory so that after the retirement they have some money to meet their expenses. As if you are a salaried person you must be having PF account. Each month some percentage deducted from your salary by your employer and same amount is added by the employer to the PF account and after retirement his amount is given as fund.
Since government know that an employee meets some financial circumstances which is very hard to meet with his potential and so allowed to take loan from the provident fund.
They say to use it as a last resort because
- As the fund is for the employees to lead a happy life after retirement. If they use it before then they receive a cut amount so they can’t lead a happy life.
- 2Several conditions and rules to be satisfied in order the funds be accessible.
Rules and situations to utilize PF
The government has given different conditions and situations to be satisfied to withdrawl PF funds before retirements. Each situation has its own age and conditions.
- The limit of giving money from each situation may vary to 36 times of wages(Basic+DA). The maximum withdrawl may depend on the situation of withdrawl.
- must fulfill all the circumstances of each situation of category.
The reason for EPF withdrawal and the rules
This reason can be used 3 times in an employee life. The employee must have completed minimum 7years service. 50% of the employee contribution can be withdrawn each time. This can be withdrawn for yourself, daughter, son, brother or sister.
This option can also be used only thrice in employee life time. The employee has to be completed a total service of 7 years. 50% of the employee contribution can be withdrawn each time. This can be withdrawn for yourself or children.
(c) Medical treatment
You can use this option for yourself, wife/husband, children & parents. The patient must be hospitalized more than a month an if the patient is employee then they should have taken leave from organization. You can take 6 times of wages or employee’s share. There is no, limit on no. of times to be taken.
Note: For cases like TB, leprosy, paralysis, cancer, mental derangement or heart ailment advance is given even no hospitalized.
(d) Purchase or construction of home
You can withdraw from PF account for the purchase of a home or construction of the house only once. You must have completed 5 years in service and the property should be registered in the name of self or jointly with spouse where the property should not have any joint owner of property.
(e) Purchase of plot
PF money can be used for buying a plot of land which can be availed only once. The minimum service requirement is at least 5 years
- Remodeling or addition in the house and repairs of house
- The maximum money employee can withdraw is 12 times of his/her monthly wages
- The house should be more than 5 yrs. old after construction completion date.
- Employee should have completed minimum 10 yrs. of service
- Employee can avail this facility only once
- The house should be in the name of self, spouse or jointly with spouse
The benefit of this clause is that one can withdraw the money anytime in his service tenure. The Employee Provident Fund is also considered most reliable retirement corpus. There is no chance of default. Subscribers will get a better interest rate and no one can take away provident Fund corpus.This benefit will mostly help employees to withdraw money from EPF in an easy and short time span.