EPF Withdrawal Or Loan: 8 Reasons When You Can Avail Them

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One can avail loan or withdraw from accumulated amount from Employee Provident Fund (EPF). However, there are specific reasons and permissible amount depending on the service provided.

Here is a look at advance or withdrawals which can be availed for the following purposes:

1. Marriage / Education
2. Treatment
3. Purchase or construction of Dwelling house
4. Repayment of Housing Loan
5. Purchase of Plot
6. Addition/Alteration of House
7. Repair of House
8. Withdrawal Prior to Retirement

EPF Withdrawal Or Loan: 8 Reasons When You Can Avail Them

Reason1: For Marriage or Education

Individuals can avail a EPF loan for the purpose of marriage of self, son or daughter, brother or sister. For education purpose one can avail for self, son or daughter.

Eligibility:

Should complete atleast 7 years of service. Loan can be availed 3 times during the entire service.

Maximum amount

The maximum amount that can be vailed is 50 per cent of employee share at the time of tendering the application.

Reason 2: Construction or Purchase of house or flat

Individuals can avail this only once either for construction or purchase of house or repayment of housing loan.

Eligibility:

  • Should complete 5 Years of service. 
  • Property should be in the name of self or spouse or jointly. 
  • Should not be a joint property owned by other than the spouse. 

Maximum Amount is 36 times of Wages. 

Reasons 3: Repayment of housing loan 

Individuals can avail this only once for repayment of housing loan.

Eligibility:

  • The individual should complete 10 years of service. 
  • Property should be in the name of self or spouse or jointly. 
  • Should not be a joint property owned by other than spouse. 

Maximum Amount is 36 times of Wages

Reason 4: For Medical purpose

One can avail withdrawal for the treatment of self where the hospitalisation exceeds one month or more. One can also avail for family members like spouse, son, daughter, dependent father, mother.

Eligibility:

  • No minimum service required
  • Certificate from ESI or from Employer that the ESI facility are not available to the member.
  • A doctor [ or registered medical practitioner] of the hospital certifies that a surgical operation or hospitalisation for 1 month or more is/was necessary.
  • In case of TB, leprosy ...etc., a specialist doctor should certify.

Maximum amount is 6 times of wages or Full of Employee share (whichever is less)

Reason 5: Purchase of site or plot

Individuals can avail this only once for purchase of site or plot.

Eligibility:

  • Should complete 5 years of service.
  • Property should be registered in the name of self or jointly with spouse.
  • Should not be a joint property owned by other than spouse.

Maximum amount is 24 times of Wages

Reason 6: Addition/alteration of house

Individuals can avail this only once for addition or alteration of house.

Eligibility:

  • Should complete 5 Years after construction
  • Annexure III (construction / completion certificate/ utilisation certificate) should be submitted
  • Property should be in the name of self or spouse or jointly
  • Should not be a joint property owned by other than spouse

Maximum amount is 12 times of Wages

Reason 7: Repair of house

Individuals can avail this only once for Repair of house.

Eligibility:

  • Should complete 10 Years after construction
  • Annexure XIII (construction completion certificate) should be submitted
  • Property should be in the name of self or spouse or jointly
  • Should not be a joint property owned by other than spouse

Maximum amount is 12 times of Wages

Reasons 8: Withdrawal prior to retirement

Individuals who looking to withdraw prior to retirement can avail it for only once.

Eligibility:

  • No minimum service
  • Atleast 54 years of age
  • 1 year before retirement
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Read more about: epf, loan
Story first published: Friday, August 14, 2015, 11:19 [IST]
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