So, it’s time to repay your home loan. But it would help to have some extra funds on hands. Maybe you would instead put the money elsewhere? Or it’s just been a few rough months, and any additional help would be appreciated. If so, then there are a variety of ways you can take the weight of a home loan off your shoulders, if only for a short time.
One of the ideal options is withdrawing your provident fund (PF or EPF). Essentially, it is money you and your employer put away for your retirement. However, in case you need to withdraw the money sooner, there is a solution. The EPF Scheme of 1952 allows up to 90% of PF withdrawal for a home loan.
Read on to find out how to withdraw PF for home loan.
Conditions for PF withdrawal
Certain PF home loan rules will determine your conditions for withdrawal:
- You can withdraw PF only once in a lifetime for this purpose.
- They have to be in service for a minimum of 3 years.
- The PF balance must be a minimum of Rs. 20,000.
- Your employer must sign a letter of authorization for PF withdrawal (you can avoid this by verifying your Aadhar Card).
- You should be a member of a housing society with at least ten members in it.
Before you apply for PF withdrawal, there are certain documents and details you must have ready:
- PAN Card
- Aadhar Card (Or LoA by employer)
- Universal Account Number
- Bank account details
- Phone Number
Additional Read: Top Things to keep in mind before prepaying your Home Loan
There is a very straightforward process for online PF withdrawal. However, you must have a UAN (Universal Account Number) and an available phone number. Once these are ready – you can log into the UAN portal.
You will have to verify your details – such as PAN Card, Aadhar, Family details – and approve a certificate of the undertaking. After this, you will choose the “Claim” option in the menu, and fill out another form. In this form, you should specify “Home Loan” as the reason for withdrawal.
Once you apply, the funds should reflect in your account soon.
In case you would like an offline PF withdrawal, the process is simple. All you have to do is log onto the EFPO website, and download a claims form. The details you fill are similar to the ones required on the online portal.
Once filled, you can apply at a physical location, and wait for revert on your home loan.
Easy home loan financing
Are you struggling with financing your home loan? Confused about future steps, or the best course of action? Wondering “how much PF can I withdraw for home loans”? If yes, then reach out to Tata Capital today.
Additional Read: How to Repay Home Loan Faster
Know everything you need to know for a home loan, PF withdrawal for home loan repayment, and any other financial information you need. Whether you are just browsing your options, or want a home loan with a reliable lender, Tata Capital has you covered.
With affordable housing loans, multiple options for financing, flexibility in repayment and many other benefits, we have your back. Give us a call today.