Query ??? EPF -Loan Facility - Financial Institution
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Query ??? EPF -Loan Facility - Financial Institution

samihr Started The Discussion:

Hi,

Please guide with info regarding loan from EPF.

1. Can the employee take loan from PF during his employment?
2. What is the eligibility?
3. How it should be repayed?
4.What are the reasons for which he can avail loan?

Kindly reply.

smile

nilendrachand - Member Since: Aug 2007
Dear Samihr (I hope this is your name),

Withdrawl from PF account is limited to 50% of your own contribution after completion of 5 years of service.

Other provisions for the same is as follows:

(A) Member is entitled to withdraw full amount:

On attaining the age of 55 years at the time of termination of service.

On retirement on account of permanent and total disablement due to bodily or mental infirmity.

On migration from India for permanent settlement abroad or for taking employment abroad

In case of mass or individual retrenchment

(B) A member can withdraw up to 90% of the amount of Provident Fund at credit after attaining the age of 54 years or within one year before actual retirement on superannuating whichever is later.

Partial Withdrawal/Advances

A member of Provident Fund is allowed non-refundable advance for the following contingencies:

For acquiring dwelling site or house

Advances in special cases such as lockout in factory/establishment for a period more than two months

Where a member has challenged the retrenchment/dismissal by the employer in a court of law

For treatment of illness

For marriages or post matriculation education of the children

Under abnormal conditions such as damage to movable or immovable property by calamity of exceptional nature

Financing of memberís Life Insurance Policy

I hope this solves your query.

Regards,
Nilendra

SAKTI PADA GHOSH - Member Since: Nov 2007
.

THE ANSWER OF YOUR QUERY IS AS FOLLOWS:

1.A MEMBER OF PF CAN TAKE LOAN FROM PF AFTER CONTINUE SERVICE OF 7 YEARS.

2.THE LOAN IS GIVEN FROM ONLY MEMBERS SHARE OF CONTRIBUTION.
THE LOAN TAKEN CAN NOT BE REPAYED BUT,IF THE MEMBER WANTS TO REPAY THE SAME HE HAS TO REPAY THE SAME WITH INTEREST.

3.A MEMBER CAN TAKE LOAN FROM PF DUE TO FOLLOWING REASON:

FOR HIS /HER MARRIAGE.
FOR DAUGHTER MARRIAGE
FOR CONSTRUCTION OF HOUSE OR RENOVATION OF HOUSE
FOR HIGHER STUDIES
DURING LAY OFF OR LOCK OUT OF THE FACTORY

vj maruthi - Member Since: May 2009
Re: PF acc transfer

hi recently i joined to one hotel industry as a HR exe, i hvae a doubt regarding PF acc tranfer form exempted employper i e Taj hotel (TATA Group) they are telling they cant give Form 3A wahta are the further steps i need to take please help me.

Maruthi

mohanlal chauhan - Member Since: Aug 2008
this material was earlier sharing by our hr cite member.pls go through it hope it is upto your desire.....

Advances from PF Account

The members are eligible to withdraw monies as advances from their PF Account for purposes like marriage, education, medical treatment etc, subject to the prescribed conditions as mentioned here below. Note that the said advance is totally tax-free and interest-free.

01 Marriage

- only for self, son, daughter, brother & sister
- the member should have completed at least 7 years of service (not necessarily with the same employer, but should have transferred the PF monies from previous employers for consecutive period of 7 years)
- maximum of 3 times in the entire service
- maximum amount is 50% of employee’s share at the time of tendering application.
- the member should apply in Form 31 through employer
- marriage Invitation card should be submitted along with form as proof for marriage through employer.

02 Education

- only for self, son & daughter
- the member should have completed at least 7 years of service (not necessarily with the same employer, but should have transferred the PF monies from previous employers for consecutive period of 7 years)
- maximum of 3 times in the entire service
- maximum amount is 50% of employee share at the time of tendering application
- the member should apply in Form 31 through employer
- Bonafide certificate duly indicating the fees payable from the educational institution.

03 For Medical Treatment

- only for self, spouse, son, daughter, dependent father & mother
- applicable for major surgical operation in a hospital and 1 month or more hospitalization for the operation or suffering from TB, leprosy, paralysis, cancer, mental derangement or heart ailment.
- For this purpose, no minimum service is required.
- The members should obtain certificate from ESI or from employer that E.S.I. facility are not available for the member.
- A doctor (or registered medical practitioner) of the hospital certifies that a surgical operation or hospitalization for 1 month or more is/was necessary.
- Incase of TB or leprosy etc, a specialist doctor should certify
- Maximum amount given is 6 times of wages or full employee share, whichever is less.
- A certified proof for the said decease has to be submitted along with the application in Form 31 through employer.

04 For Purchase of Site and Construction there on

- Should have completed 5 years of services
- members contribution with interest should not be less than 1,000
- Site should be free from encumbrances
- Site should be in the name of the member or spouse of the member or in the joint names of the member and the spouse
- The maximum amount given is least of Basic+DA for 24 months or total contribution & Interest or total cost of site.
Purchase of Flat/House (from agency/promoter)
- Should have completed 5 years of services
- members contribution with interest should not be less than 1,000
- House/Flat should be free from encumbrances
- Flat/house should be in the name of the member or spouse of the member or in the joint names of member & spouse.
- The Agreement with the Flat promoter should be registered under the Indian Registration Act.
- The maximum amount given is least of Basic+DA for 36 months or total contribution & Interest or total cost of site.
Alteration / Modification of House
- Should have completed 5 years of services
- only after 5 years of completion of construction of dwelling house
- the maximum amount given is 12 months Basic+DA or member share of contribution with interest, whichever is less.
Repayment of outstanding principal / Int. of a loan obtained from State Govt, Regd Co-operative Society, State Housing Board, Nationalized Bank and Public Financial Institution.
- Should have completed 10 years of services
- Member contribution with interest should be more than 1,000
- The amount will be paid directly to the agency and not to the member
- The maximum amount paid is 36 Months Basic + Members accumulation with interest or Outstanding Principal plus interest which is sought to be repaid, whichever is less.
regards
mohan

u. arun - Member Since: Nov 2009
Re: Query- EPF Loan

Hi, i need EPF loan for my sister marriage and im in 5 years service 2 years with one organization (EPF amount has claimed) and 3 years with another organization which im working currently.

Am i able to avail loan for my sister marriage?

How long it will take to proceed the loan process?

Pls clarify

Regards
Kumaraguru. R

mdsaleema@ymail.com - Member Since: Oct 2011
Hai kumaraguru Your not eligible to take PF loan Because u are not continuously worked in company those who are worked continuously 5 years there are eligible to take pf loan

mafun - Member Since: Apr 2013
Sir, I got advance from pf amount for site purchasing.. Is i have to pay any interest on this loan or is i have to repay the advance money.. Please help me.. Regards Mafun

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