Comprehensive Guide to PF Housing Loan: Eligibility, Withdrawal Process, and Repayment Procedures

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?

Please brief me on the loan taking and repayment procedures.

Thanks,
Anantha

Dear Friend,

As per P.F. norms, if any employee has continuous service of five years, he is eligible for taking a loan. The employee receives only a percentage of the amount prescribed by P.F. authorities from his 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%).

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.

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.

Hi Bijoy,

Please let me know what percentage of the deposited amount (12% + 3.675) can be withdrawn against the housing loan. Also, could you inform me about the documents required for this process?

Regards,
Bijoy

Dear All,

One month ago, I had a question about how to surrender my P.F. and ESIC code in the respective departments. However, I have not received any replies to date. Please assist me in this matter.

Best Regards,
Bijoy

Dear Friend,

To my knowledge, PF & ESI codes would be surrendered at the time of company closing. I think the company has to inform the respective departments by writing a formal letter. In order to write a letter, the company has to surrender the original certificates. If you consult the respective department PROs, they will tell you the procedure on how to do the same. My sincere advice is to go to your company's PF and ESI office and meet the aforementioned officials to ask your queries. I am sure they will help you.