The Provident Fund (PF) is a government-backed retirement savings program designed to ensure financial stability for employees after they retire. In this plan, employees contribute 12% of their basic salary, and the employer matches that contribution. Of this total, 8.33% goes into the Employees’ Pension Scheme (EPS), while 3.67% is allocated to the Employee Provident Fund (EPF), which offers an interest rate of 8.65%.
Most of us are familiar with the Employee Provident Fund (EPF), but did you know you can actually take a loan against your PF balance? That’s right! If you find yourself in need, you can withdraw up to 50% of your PF balance. This can be especially helpful in situations like weddings, medical emergencies, or building a house.
Here are some important points to remember when applying for a PF advance:
1. The employee must have a valid Universal Account Number (UAN) to apply for the EPF loan.
2. The employee should be an active member of the EPFO and meet the eligibility criteria set by them.
3. The loan amount must stay within the specified limits.
Steps to apply for an EPF loan:
1. Visit the official EPFO Unified Member Portal.
2. Log in using your UAN, password, and captcha.
3. Click on Online Services > Claim (Form-31, 19, 10C).
4. Fill in your details, including your name, date of birth, and bank account information.
5. Select the reason for the loan from the dropdown menu.
6. Enter the amount you wish to withdraw and submit your application.
7. Upload the required documents and verify them using an Aadhaar-based OTP.
8. Your application will be reviewed by the EPFO, and the funds should be transferred to your account within 7-10 days.