Curious About PF Loans? Here's How to Navigate the Process and Rules

Hi all,

I am working as a Contract Engineer in a Government of India Enterprise Company for the past 4 years. Every month, 12% of my salary has been deducted for PF, and the same amount has been contributed by the employer. Now, I am interested in taking a PF Loan from my PF amount.

What is the procedure and the rules for taking a PF Loan?

Regards,
VIKAS JAIN

Hi,

Before five years, you are not eligible to get a loan from PF. Also, you can get a loan for a specific purpose, mainly for self-marriage, construction, or repair of a house, etc. The loan amount you will get is some % of your contribution. The company's contribution is not paid as a loan.

For details, you can ask in your company's HR dept or the nearest PF office.

Regards,
Harshad

I am working in an MNC. Am I eligible to take a loan for repairing my flat? My job is permanent. How much loan am I eligible for?

Secondly, one of my aunts is a government employee for the last 10 years. Is she eligible for a loan against PF? Please, it's urgent. Thank you.

You will be getting 80% of the loan on your balance, i.e., on the closing balance of your account slip - up to February 2009. The 80% loan is only sanctioned if you apply for renovation, construction, and purchase of a flat.

Dear Vikas,

Please find attachment for your ready reference.

I am working as a Software Engineer in a private limited company for 10 years. Every month, 12% of my salary is deducted for PF, and the same amount is contributed by the employer. Now, I want to take a PF loan from my PF amount. Is it possible? If so, where can I apply?

Yes, you can get your PF amount, but there are some clauses. Please check the following link to know more about those: EPFO

My PF consultant says that there is a court ruling putting a stay on the clause of advance for the purpose of alteration of home. Can someone please confirm the above ..