Understanding PF Loan Withdrawals: How Often Can You Borrow and What Are the Rules?

I am from Chennai, India, working in a company. I just want to know how many times we can withdraw an amount from PF as a loan. I have already withdrawn once as a loan from PF for marriage. Is there any criteria like the number of years gap required or what are the rules?

Thanks,
Divya

Guidelines for advances are fixed depending upon the purposes for which they are taken. A second time advance for the same matter is not mentioned except in the case of advances for addition/ alteration of a residential house for which a waiting period of five years from the first advance taken for purchasing or construction of a residential house is provided. At the same time, if you have taken an advance for marriage (for which a minimum service of seven years is mandatory), there need not be any more problem for taking an advance for other purposes, say, construction/ purchase of a residential house, meeting expenses in connection with hospitalization, or education of children.

Abbas may be able to put his inputs into this matter. Please help.

Regards, Madhu.T.K

PF Withdrawal Process

For PF withdrawal, you need to fill out Form 19 and Form 10C. Send the completed forms along with a self-cancelled cheque to the PF consultant.

We can take a loan from PF for purposes such as marriage, house construction, children's education, and medical treatment. I think at least a 5-year gap is required to take another loan.

Regards,
Vidyaranya.

Please find the PF withdrawal forms attached.

Dear Sir,

I am Sudhanshu Kumar Singh. I am working as a consultant with a private limited company. I want to know about the PF withdrawal forms such as Form 19, Form 10C, and Form E-5. Could you please guide me on the process of filling them and the documents required to be submitted along with these forms? Additionally, I would appreciate information on their individual uses.

Thanks and regards,
Sudhanshu Kumar Singh

Hi Sudhanshu,

I have attached the forms for PF withdrawal in my previous post. Form 19 and 10c are required, but no E-5 form is needed. Please find the details below which you have to fill in these forms:

FORM 19
1. Start with your name.
2. Father's name.
3. Leave the address column, as your previous company will fill it out.
4. PF account number.
5. Date of leaving.
6. Reason for leaving (just mention RESIGNED).
7. Your postal address.
8. Mode of Remittance (please tick column B and provide your saving bank account details which you want to use for PF amount withdrawal).
- Date of joining.
- Date of birth.
- NEXT PAGE
Sign in two places in the upper half of the page.
Paste a revenue stamp, sign across the revenue stamp, and put signatures below the stamp in the provided space.

FORM 10C
1. Name.
2. Date of Birth.
3. Father's name.
4. Leave the address column.
5. Leave the code column as well.
6. Reason for leaving (RESIGNED).
- Date of leaving.
7. Postal address.
8. Tick mark on column NO.
9. Leave box 9.
10. Leave box 10.
11. Tick mark on option B and provide your savings bank account details for the PF withdrawal.
12. Leave box 12.
- Put your signatures below.

Next Page
ADVANCE STAMPED RECEIPT
Put your signatures in the space provided, paste a revenue stamp at the mentioned place, and sign across the stamp.

It's all done.

IMP - Attach a self-cancelled cheque of the saving bank account mentioned in your form and also include your contact number at the top of the form.

Dear Nimisha,

Your description of how to fill out Form No. 19 and Form 10C of EPF is good. However, as a person with a little experience associated with statutory returns and filing, I have a suggestion. There should be no column, row, or cell left out in any form or return. If you leave out the address column in Form 19, who will fill it?

If you only write "Resigned" as the reason for leaving, won't it be printed on the form itself? The reason for leaving could be resignation, retrenchment of employment, resignation after getting married (for female employees), leaving India for settlement abroad, or death. Each reason requires different treatment; for example, in case of retrenchment, leaving India, or marriage (for women), a waiting period of two months is not required. Therefore, it cannot simply be "resigned"; there should be qualifying words attached to it.

In addition to signing to declare that the employee/member has not been employed in any establishment for two months and another signature for authentication in the presence of an attesting officer/employer, only one signature is required across the revenue stamp. There is no need to sign again below the stamp. Also, the second signature, which declares non-employment, is not necessary if the fund is claimed by the nominee after the employee's death, or if a member (woman) is withdrawing the fund after leaving the establishment due to marriage or settling abroad.

In Form 10C, the address of the establishment where you worked should also be filled in.

Without filling in the code number, how can the person be identified?

Question number 8 is crucial. Are you interested in availing a Scheme Certificate in lieu of withdrawal benefit? Many individuals opt for a scheme certificate, so how can you instruct to write "NO"? If an employee is withdrawing PF after ten years of service, naturally, the answer to question number 8 should be "YES," and even if "NO" is written, the PF Office will correct it to "YES" or send it back.

Column 9 cannot be left blank as it requires details of nominees. Similarly, column 10 is relevant. Column 12 should be filled in if the individual is already receiving a pension, but it cannot be "No" only.

Regards,

Madhu.T.K