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I have 2Yrs service is current company and 5 Yrs service in the prev. company. I have transferred my PF amount from prev account to current account. Total amount will be arround 4lacs. Now I want to withdraw some amount for construction of my home.
Jan 23 I purcahsed a land in my native as it is done in a very short period, I am not able to apply for Advance withdrawal for land purchase. In the few months, I will start the construction. For the same, I am going to take Home loan from commerical bank also.
Can I withdraw EPF along with Home Loan? Is there any issue? Total construction cost will be more than 20lacks. How much time it will take to process the application of withdrawal? and Will I get all the EPF amount in a single payment ?
Kindly help me, I have to make financial planning before starting the construction.
Thanks & Regards
C. Vairavan

You are eligible to take loan from PF for construction of house. You can apply in form 31 attaching the estimate and plan approval. Also attach a cancelled cheque leave so that they can make NEFT to your bank. Normally it will take maximum 30 days to process the advances but if you visit the office and frequently ask for the status the same can be made faster. The status is available online also but I would recommend that you should visit the PF Office personally in order to get the things move faster.

Hi Madhu
Thanks for your reply. I have few more doubts. I will also apply for home loan as well. Will it create problem? If I want to withdraw 4 lacs from my account, will it be paid in a single payment?
Thanks Once again

Dear C. Vairavan, You also need to attach Non- Encumbrance Certificate with Form No. 31. So you have to apply for home loan after the withdraw of loan from pf. thanks/regards, Amit Kumar
No problem you can take loan from banks also. PF advance is given from your own contribution and therefore, no pledging or other legal documents are required. The approval from the local authorities and the estimate are required just to make sure that the fund is not misused. The PF will make one and single payment.

Dear All
I have learnt that when we take out some amount from our PF contribution then the amount varies for different purposes and it requires a certain years of employment as PF member.In my knowledge the condition for withdrwal of PF amount for construction of house is that the member must have completed 5 years of service as PF member,can avail this benefit just once during entire service and can withdraw 36 times of member's wages.I would like to know that am i correct or wrong??
Seniors please contribute....

Advance for the purpose of construction or purchase of house will be available on completion of five years of service. Similarly, advance for marriage is available only if the member has seven years of membership. A further advance on any ground is also given subject to some conditions even if the member has availed one advance. As such advance for alteration of house can be availed but after five years of completion of the construction. Ten years service is required for taking advance for repayment of a loan taken from an approved body for construction or purchase of house. For other purposes the length of service is not a matter.
Please find the attachment.

Attached Files
File Type: doc PF Advances.doc (43.0 KB, 4103 views)

Dear Mr. Vairavan,
As rightly suggested by Mr. Madhu, you can opt for withdrawal on the grounds of house construction. EC or agreement copy are not required to avail this withdrawal. You need to give a declaration under Form 31A along with form 31 and other documents as narrated by Mr. Madhu to get the benefit. I am enclosing some of the documents for your ready reckon.
P. Vathiraj

Attached Files
File Type: pdf Form31_Declaration.pdf (17.0 KB, 6159 views)
File Type: pdf Form31.pdf (921.8 KB, 2121 views)
File Type: doc Para 68B of Employees PF Scheme.doc (46.5 KB, 1944 views)
File Type: pdf Withdrawal of PF for housing loaN 05.6.2012.pdf (177.1 KB, 2476 views)

Respected All,
As per your conversation i want asked one question:
I have completed my service in my present company more then 3 years.
Is that i am eligible to take advance from PF for my personal business.?
Please suggest me with your valuable feedback.
Biswajit Biswas

For investing in personal business advance from PF is not available and therefore, the question of service does not arise in your case. Obviously, once you complete your service and or decide not to join any employment you can withdraw the PF and invest the money as you wish.

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