PF Amount Withdrawal: Now you can withdraw PF amount to repay home loan, know details

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Employees’ Provident Fund Organization or EPFO ​​is a scheme issued by the Government of India where employers and employees contribute a specific amount every month which allows subscribers to make partial withdrawals or ‘advance’ withdrawals from the PF corpus under certain circumstances.

Home loan interest rates have increased recently after the RBI repo rate hike. For both new and existing customers, some banks have increased their interest rates. As a result of rising interest rates on home loans, what should borrowers do to reduce their interest payments against their outstanding loan amount? They can consider repaying their home loan fully or partially with their Employees’ Provident Fund (EPF) money.

EPF balance can be withdrawn to repay home loan:
You can withdraw the EPF amount for home loan repayment as per section 68BB of the EPF scheme. The household should be registered in the name of the PF member either individually or jointly. For home loan, the candidate must have made PF contribution for at least ten years. There will be no tax on PF amount withdrawn after five years of uninterrupted service.

How to withdraw your PF savings for home loan repayment:

1. Login to EPFO ​​e-Seva Portal.
2. Enter your UAN, password and captcha code.
3. Go to the section- ‘Online Services’.
4. Enter your bank details.
5.Read and confirm the terms and conditions.
6. Select the reason for EPF savings withdrawal.
7. Enter your address and other details and upload the documents.
8. After uploading, confirm T&C and receive Aadhaar OTP on registered mobile number.
9. Your application will now be submitted.

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