Loans From Provident Fund For New House, Renovation: When Can You Avail?

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Individuals can avail loan or advances from the accumulated amount from the Employee Provident Fund contribution depending on the number of years of services.

Individuals who are planning to apply should apply Form-31 through the employer.

Here is a look at advance which can be availed for home or its construction purpose:

  • Purchase or construction of Dwelling house 
  • Repayment of Housing Loan 
  • Purchase of Plot 
  • Addition/Alteration of House 
  • Repair of House 

Go through the slides to know about the maximum amount and eligibility on each type of advance:

Construction or Purchase of house or flat

This type of loan can be availed only once, for construction or purchase of a house.

Individuals who have completed 5 Years of service are eligible to avail this loan.  Note that property should be in the name of self or spouse or jointly.

Should not be a joint property owned by other than the spouse. The maximum amount which can be availed is 36 times of wages.

Repayment of housing loan

As per the rules. this only should be used only for repayment of housing loan. To avail the same individual should have completed 10 years of service.

The property should be in the name of self or spouse or jointly. Should not be a joint property owned by other than a spouse.

Maximum amount which can be availed is 36 times of wages.

Purchase of site or plot

Individuals can avail this only once for the purchase of site or plot. Individuals should have completed 5 years of service. The maximum amount which can be availed is 24 times of wages.

Addition/alteration of house

Individuals can avail this only once for addition or alteration of the house. To avail this he or she should complete 5 years after construction. The maximum amount is 12 times of wages.

Repair of house

This is very similar to the type of advance which can be availed for alteration of house. Should complete 10 years after construction. The maximum amount is 12 times of wages.

Other Loans

Other loans which can be availed from the provident fund are for the purpose of marriage, education, or for any medical purposes.

Read more about: epf, provident fund, loan, home loan
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