Financing for different purposes can allow you to organize all the cash yourself. However, expenditures like home purchases, car purchases, weddings, etc., require a significant amount, meaning one must spend all their savings. Those looking to buy a home or spend on such expensive things can easily withdraw through the EPF or Employees Provident Fund.
The employee and employer pay the Employment Provident Fund to help retire. The aim is to offer them a tremendous amount at retirement. However, an individual with a PF account can get funds as a loan, which is an EPF personal loan.
EPF is a government-approved retirement scheme in which both employers and employees contribute equally to this fund, which offers tax-saving benefits. However, employees can make partial withdrawals during their working period, and the money can be used as a loan during a financial crisis. So let’s discuss how and when you can apply for an EPF personal loan online.
EPF Personal Loan – A Primer
EPFO (Employment Provident Fund Organization) offers employees to withdraw a sum from their PF account partially, and they can utilize it as a personal loan to meet financial needs. While it is an EPF personal loan, it is not precisely a loan but an advance amount that employees must repay.
The EPFO oversees this procedure and offers an employee to withdraw a partial amount only after the reason is justified and verified. Usually, a person with an existing 5-year service or above can take a loan from their PF account. However, this condition may vary according to the reason for applying for an EPF loan.
Conditions You Must Fulfill to Avail EPF Personal Loan
There are some conditions that a borrower must fulfill to get an EPF loan. However, you must satisfy these requirements if you plan for an EPF personal loan online apply.
If your child, spouse, or parent is ill, you can easily withdraw your EPF amount for the treatment. However, there is no condition on the employment duration for medical treatment. You can withdraw an amount equal to your share and interest or 6 times your monthly salary.
You can withdraw your EPF amount for your wedding or your children’s wedding. However, you must complete at least 7 years of service.
You can withdraw 50% of the money for your or your children’s education three times. However, you must have a complete minimum of 7 years of service.
- Purchase of Plot or Home
You can easily avail an EPF personal loan to buy a home or plot or for construction purposes. However, you must complete at least 5 years of continuous service.
Any natural calamity can bring a significant loss; thus, you can get your EPF contribution.
An employee can withdraw money if the company has been closed for about 15 days or if they have not received their monthly salary for about 2 months. You can also withdraw an amount equal to unpaid wages. You can withdraw the total contribution if the company is locked out for more than 6 months.
You can withdraw up to 90% of your PF balance one year before your retirement date or after the age of 54 years.
You can withdraw 75% of your EPF contribution if you remain unemployed for about 1 month. However, you can also take the total amount in case of unemployment for more than 2 months.
Steps to Apply for EPF Personal Loan
Due to its hassle-free procedure, getting an EPF personal loan is very simple and effortless. You can get the EPF advance by filling out the online form if your UAN is validated with your identity proof and KYC of your bank account. However, you must follow the steps for EPF personal loan online apply.
- Visit and log in to the UAN member portal using your credentials.
- Click on ‘Online Service’ then select ‘Claim Section.’
- The next screen will show all the details of the member, so enter the last 4 digits of your account to verify.
- Click on the “proceed” option.
- Then choose Form 31 for the PF Advance form from the drop-down menu.
- Fill in the required details and your amount.
- Upload a scanned copy of your cheque and fill in your residential address.
- After that, click on the OTP option.
- Lastly, enter the OTP received on your registered mobile number and submit the request.
Alternatively, you can also use the mobile app known as Unified Mobile Application for New-age Governance (UMANG) to apply for EPF loans online. However, you need to follow the given steps:
- Go to the home screen of the app.
- Navigate to EPFO
- Choose Employee Centric Service, then select raise claim
- Login with the help of UAN and enter the OTP to file the claim.
With the help of an EPF loan, you can easily get a partial amount of your PR contribution to meet your financial needs. However, with the above steps for EPF personal loan online apply, you can easily and quickly file a claim without any hassle.