Sage-Tips

Is it advisable to withdraw PF for home loan?

As the yield on PF contribution by way of interest is considerably higher than the prevailing home loan rates, it is advisable that withdrawal from PF should be considered as the last resort and only after evaluating the availability of other sources of funding such down payment.

What is GPF withdrawal rules?

A subscriber can withdraw an amount equal to 75\% of the outstanding balance in such PF or his/her 12 months’ emoluments, whichever is lower. It is available for purposes of funding education or any ceremony, like the marriage of self or a dependant family member.

How many times I can withdraw GPF?

One can take GPF Advance any number of times in our career. However, At least 4 months time gap will between two advances and 6 months time gap for withdrawals have to be maintained. The sanctioning authority, may relax this rule in exceptional cases depending on the merits of the application.

Is GPF withdrawal taxable?

Interest earned on the provident fund corpus is tax-free and no tax is levied at the time of withdrawal, making it an attractive investment option. Government employees contribute to the general provident fund (GPF) without any employer contribution.

Can we take loan on GPF?

GPF and PPF loan facility: GPF Advance is a facility offered to the account holder/employee wherein he or she can obtain loan against GPF throughout his or her career. The loan can be repaid in regular instalments. No interest rate is applied to the borrowed sum.

Can I take loan from GPF account?

Should I withdraw my EPF Quora?

As per the latest rules, you cannot withdraw your PF amount. Only if you are not working currently, then you can withdraw your contribution + interest, but not your employers contribution. You can withdraw your whole PF account only once you attain the age of 58 years old.

How much can I withdraw from my GPF account?

3. Government has permitted GPF withdrawal of up to twelve months pay or three-fourth (75 per cent) of the outstanding money in the General Provident Fund, whichever is less. In some cases such as for illness, the withdrawal may be allowed up to 90 per cent of the amount standing at credit of the subscriber.

How much can I withdraw from PF for repaying home loan?

For Repaying Home Loan- For the purpose of repaying the outstanding home loan, the PF member is allowed to withdraw up to 90\% of the corpus if the house is registered in his or her name or held jointly However, to withdraw the amount, at least 3 years of complete service is required

Can I withdraw money from EPF to pay off my home loan?

You are also allowed to withdraw your EPF balance to repay your home loan. 36 months’ basic salary and DA. An employee who has completed at least five years of contribution to his provident fund account, can withdraw money for the purchase of a plot and/or construction or purchase of a house.

Can an employee withdraw money from Provident Fund account for loan repayment?

However, an employee can withdraw money from the Provident Fund account based on a list of reasons provided by the Employees’ Provident Fund Organisation (EPFO). Several PF subscribers want to know about how to withdraw from Provident Fund account for loan repayment.