Can I Get a Non-Refundable EPF Loan for a Plot with Contributions in Two Cities?

Hi,

Is it possible to take a non-refundable loan from EPF for buying a plot? I have completed 5 years in my current job. The first 3 years of PF contributions were made to the EPF office in Mumbai, while the last 2 years' contributions have been to the EPF office in Chennai. This change occurred due to some internal adjustments, where the employer transferred a few cases belonging to a subsidiary company to the Chennai EPF office. I have not transferred the PF balance from my Mumbai account to the Chennai account.

For me to apply for a non-refundable loan from EPF for buying a plot, should I do so in Mumbai since it is more convenient for me? Given that my account is spread across two offices, will I still be eligible for the PF loan, considering that 5 years of service are required to obtain a non-refundable PF loan? I have been with the same subsidiary company since joining 5 years ago.

Regards,
Kumar

Dear Kumar,

Although you have worked in the same subsidiary company, your contributions were deposited in two different account numbers. Please first send Form 13 for the transfer of the funds. After the transfer, apply for an advance through Form 31, as a minimum of five years of service is required for an advance. Please refer to the attached file for information on advance withdrawals.

S. Sethupathy Excellent HR Services.

Thank you very much, Sethupathy. In the document you have shared, it is mentioned that "A declaration from the member that the dwelling site or dwelling house/flat or the house under construction is free from encumbrances and is under the title of the member or the spouse." Does this mean that I can apply for this 'advance' only after buying the plot since until I make the purchase, the title will not be in my name? Also, is there any way I can provide a declaration to the Mumbai/Chennai PF office stating the details of both PF accounts to show that I have more than 5 years of service so that the claim can be entertained (as the balance transfer from one PF office to another may take a lot of time).

Thank you in advance.

Regards,
Kumar

Dear Kumar,

You can make a purchase agreement for a period of not less than 3 months duration with the landowner, with a token advance, and attach a copy of this along with the application. Since this paragraph applies to both purchase and construction, these types of conditions are specified. However, they are subject to the approval of the employer in Form 31.

I don't think you can apply for an advance without demonstrating that you have contributed for five years or more (in your case, due to the merger). Nevertheless, approach the EO at the local PF office with all the details, explain your case, and seek some remedial action.

All the best.

S. Sethupathy, Erode.

Hi Sethupathy, thanks. One challenge I have is regarding the Purchase agreement with the land owner. Eight friends are buying a plot together from the owner (and then dividing it among ourselves), and only one of us (my friend) is making an agreement with the owner. The final sale registration would be done by the owner for all eight folks. So in this case, can I apply for PF withdrawal with a copy of the sale deed in my name after the sale completion as I won't have a purchase agreement earlier?

Regards, Kumar

I am planning to jointly buy a plot along with my brother, and I am looking to withdraw from PF for the same. However, PF rules specify that the land should be in the name of the PF account holder or the Account Holder + Spouse.

Please advise on what to do.

Thanks.

Dear Kumar,

You can attach the sale deed and ask for an advance to construct a dwelling house. Normally, the authorities sanction advance for the expenses to be incurred.

S. Sethupathy, Excellent HR Services, Erode.

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Thanks, Sethupathy, the PF consultant in my organization advised me to withdraw the PF amount from my Mumbai account. According to him, I just need to submit the withdrawal form. He mentioned that the account in Chennai cannot be withdrawn. My worry is that if I withdraw from the Mumbai account, I may lose the chance to include it in my 'total service,' which could potentially affect my 'pension' in the future. Is this assumption correct? What are the pros and cons of such a withdrawal from a pension perspective? If I withdraw the Mumbai account amount, will they also provide the pension fund contribution (Rs. 511/- per month, I suppose, i.e., 8.33% of salary)? What is the best way to get the full 5 years' money? Please help.

Regards, Kumar

I want to withdraw PF for a flat purchase, but now I am working. What is the percentage of the PF amount I can withdraw?

I have been working in an organization for more than 7 years, and last year I applied for a loan against my PF amount to buy a plot. I attached all the necessary documents along with the agreement copy of the land, which was notarized. However, after a long gap, it was rejected by the Maharashtra (Bandra) PF office, stating that I didn't register the land in the registration office.

Unless I pay the amount in full, how will the seller proceed to register the land in my name? Secondly, when I approached the Chennai (Tamil Nadu) PF office Public Relations Officer, they explained that for buying a plot, registration of the land is not required to be sent to the PF office. Registration is necessary only when purchasing a flat. However, when I explained this to the Mumbai PF office, they were not ready to accept it and requested some notification or government order clearly stating that registration is not required for applying for a loan against PF.

Can anyone provide the notification or government order that applies to my case? Please help.

Regards

I am a working professional in Bangalore. I will complete 5 years of service in September 2013 in the same company. I got 2 plots registered in my name in Kolar in late June 2013. However, I still owe the developer money towards one of the plots. The developer was nice enough to register them before I made full payment as there were rumors that the stamp duty would be hiked in July 2013, and many of us got our plots registered to avoid running the risk of having to pay a higher stamp duty.

Questions About PF Withdrawal

I would like to withdraw my PF amount to clear the amount due to the developer. I have the following questions:

1. Can I withdraw my PF by furnishing the registration documents for the plots? Or will the withdrawal request get rejected because the sites are already registered?

2. I have been in service for 13 years in various companies with a 1-year break in between. Am I eligible to withdraw my PF to clear another loan?

3. Can I take a mortgage loan on an existing property and then apply for PF withdrawal to clear the loan?

The status of my PF before 5 years is unclear. I am not sure if the amounts were indeed transferred. Am I eligible to withdraw my PF to clear a mortgage loan (not a housing loan)?

Thanks in advance.

I want to purchase a plot, so I have withdrawn an advance from my provident fund.

Please tell me what documents are required.