Planning to Buy a Flat in Navi Mumbai? How Does a PF Loan Work for You?

Hi Friends, I am planning to take a PF loan for a house purchase (a flat in Navi Mumbai). How much can I get, what is the calculation to determine the maximum loan amount, and what is the repayment procedure? Is it similar to a normal loan (like EMI), or is the repayment automatically deducted from the salary? Do we have the option to choose the number of years to repay the amount?

Loan Taking and Repayment Procedures

Please brief me on the loan taking and repayment procedures.

Thanks,

Anantha

Eligibility for PF Loan

As per P.F. norms, if any employee has continuous service of five years, they are eligible for taking a loan. The employee receives only a percentage of the amount prescribed by P.F. authorities from their and the employer's P.F. contributions (12% + 3.67%). Please note that P.F. authorities will not give any loan on the EPF amount (8.33%).

Interest and Loan Repayment

Regarding interest and loan concerns, they will not charge any interest, and the loan amount does not need to be repaid. They simply deduct the same amount at the time of withdrawal, and the balance will be paid to the employee.

Procedure to Apply for a PF Loan

In your case, if you have the above-stipulated service, you can take the loan by using Form No. 31, which can be downloaded from this site http://epfindia.nic, and you have to submit the required documents along with the form.

For more information, please go through the above-mentioned site to get detailed information.

Regards

Hi Bijoy,

Please let me know what percentage of the deposited amount (12% + 3.675) can be withdrawn against the housing loan. Also, could you inform me about the documents required for this process?

Regards,
Bijoy

Dear All,

One month ago, I had a question about how to surrender my P.F. and ESIC code in the respective departments. However, I have not received any replies to date. Please assist me in this matter.

Best Regards,
Bijoy