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
From India, Mumbai
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1Loan Taking and Repayment Procedures
Please brief me on the loan taking and repayment procedures.
Thanks,
Anantha
From India, Mumbai
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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
From India, Hyderabad
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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
From India, Hyderabad
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Withdrawal of PF for housing loan 5.6.2012.pdf
Procedure for PF Loan.doc