In this era of inflation, everyone has to take a loan to fulfill their needs. Whether it is to buy a house or a car, taking a loan has become common nowadays. But do you know that apart from banks and financial companies, loans can also be taken from EPFO (Employees Provident Fund Organization)? Yes, your PF account can help you in your difficult times. Let’s know how.
Helpful not only in retirement but also in emergencies
12% of the salary of every employed person is deducted as PF, which is deposited in their PF account. This money acts as a safety shield after retirement. But if you need money in an emergency, you can also take a loan from this fund.
Safety shield: Financial security after retirement.
Emergency assistance: Loan facility in difficult times.
Regular savings: Savings from salary every month.
Who can take a loan from PF
If you want to take a loan from PF, then you have to fulfill the conditions given below:
You must have an active UAN (Universal Account Number).
You must be a member of EPFO.
You must fulfill the required eligibility to withdraw money.
The loan amount should be within the limit.
How much money can be withdrawn
You can withdraw up to 50% of your PF account from EPFO. This is called a PF loan. You can withdraw this money in certain situations. Money can be withdrawn in the following situations:
For medical emergency.
To buy or build a house.
For a child’s marriage or higher education.
Half of the PF account can be withdrawn.
Withdrawal only in prescribed emergencies.
Financial help in difficult times.
How to apply
To avail PF loan, follow the steps given below:
First of all, visit the official website of EPFO.
Log in by entering UAN, password and captcha code.
Now go to Online Services and click on the Claim (Form-31, 19, 10C) option.
Fill in personal details like your name, date of birth, and bank account details.
After that select the reason for withdrawal.
Upload all the required documents and enter the registered mobile number.
After verifying the OTP, your application will be submitted.
PF loan is an important financial support in difficult times. It helps you meet your needs and makes you financially strong. By understanding the rules, you can avail of this scheme as per your requirements.