You can withdraw your Provident Fund amount to repay your home loan. You can withdraw up to 90% of the EPF amount to repay home loans. The Employees Provident fund can be withdrawn at the age of 55 years for retirement purposes. However, it can be withdrawn earlier as well for purposes like home renovation, wedding expenses, education expenses, financial emergencies, home construction or purchase, etc.

How to withdraw Provident Fund Amount for repayment of a home loan?

Step 1: Log into the EPFO e-SEVA portal.

Step 2: Input your UAN, password, and captcha code to login

Step 3: Visit the "Online Services" area.

Step 4: From the dropdown, select “claim form 31”

Step 5: Enter your bank information and click verify

Step 6: Check the terms and conditions once you read

Step 7: Proceed with the online claim, and select the claim settlement.

Step 8: Select the purpose of the advance

Step 9: Enter details such as the amount required and address

Step 10: Upload the documents if required.

Your application will be submitted after duly completing all the steps.

 

To withdraw your Provident Fund (PF) amount to repay a home loan, you can follow these steps:

  1. Check your eligibility - You can withdraw the PF amount for repayment of a home loan only if you have completed five years of continuous service with your employer. If you have not completed five years, you may not be eligible for the withdrawal.
  2. Fill up the form - You need to fill up the Form 31 (Application for Advance from the Fund) to withdraw the PF amount. You can download the form from the website of the Employees' Provident Fund Organisation (EPFO) or get it from your employer.
  3. Attach the required documents - You need to attach the documents such as the copy of the home loan agreement, proof of ownership of the house property, and a letter from the bank or financial institution stating the outstanding loan amount and the interest rate.
  4. Submit the form - You need to submit the filled-up form and the documents to the concerned regional EPFO office or your employer.
  5. Wait for the approval - Once you submit the form, the EPFO will verify the documents and process the withdrawal request. It may take a few days to a few weeks for the approval.
  6. Receive the amount - If your withdrawal request is approved, the PF amount will be credited to your bank account.

Note - It's important to note that the maximum amount that can be withdrawn is limited to a specific percentage of your total PF balance, and this percentage may vary depending on the purpose of withdrawal. Additionally, withdrawing funds from your PF account may impact your retirement savings, so it's advisable to consult with a financial advisor before making any such decisions.

 

Things to check before filing withdrawal from EPF account online

Before filing a withdrawal from an EPF account online, the following eligibility conditions should be checked. 

These conditions are as follows:

A) The UAN or Universal Account Number should be activated

B) Aadhaar number should be linked and verified with UAN

C) Bank account with the correct IFSC should be seeded with UAN

D) EPF account must be KYC-compliant

E) You will receive an OTP on the mobile number that is linked with the Aadhaar card. Please make sure it is active.

F) The accurate date of birth should be updated in the EPFO records, in case of retirement.

Things to know to Withdraw PF Amount to Repay home loan

  1. Eligibility - As mentioned earlier, you can withdraw the PF amount for repayment of a home loan only if you have completed five years of continuous service with your employer. If you have not completed five years, you may not be eligible for the withdrawal.
  2. Maximum withdrawal limit - The maximum amount that can be withdrawn is limited to a specific percentage of your total PF balance, and this percentage may vary depending on the purpose of withdrawal. For home loan repayment, you can withdraw up to a maximum of 90% of your PF balance.
  3. Tax implications - The amount withdrawn from your PF account for home loan repayment is tax-free. However, if you withdraw before completing five years of continuous service, the withdrawn amount will be added to your taxable income and taxed accordingly.
  4. Repayment of the home loan - Withdrawing the PF amount for home loan repayment can reduce the burden of paying EMIs, but you should still ensure that you have enough funds to meet your regular expenses and emergencies.
  5. Impact on retirement savings - Withdrawing funds from your PF account can impact your retirement savings. The PF account is designed to provide a corpus for your post-retirement years, and withdrawing funds can reduce the amount available at the time of retirement. It's advisable to consult with a financial advisor to assess the impact of the withdrawal on your retirement savings.
  6. Application procedure - To withdraw the PF amount, you need to fill the Form 31 (Application for Advance from the Fund) and submit it along with the required documents to the concerned regional EPFO office or your employer.
  7. Verification and processing time - The EPFO will verify the documents and process the withdrawal request. It may take a few days to a few weeks for the approval and credit of the amount to your bank account.

 

FAQ of How to Withdraw PF Amount To Repay Home Loan

1:What is a Provident Fund (PF)?

Provident Fund (PF) is a retirement benefit scheme where a portion of the employee's salary is set aside each month and invested in the fund. The amount accumulated in the fund can be withdrawn by the employee upon retirement or under certain circumstances such as medical emergencies or home loan repayment.

2Who manages the Provident Fund (PF)?

The Provident Fund (PF) is managed by the Employees' Provident Fund Organisation (EPFO) which is a statutory body under the Ministry of Labour and Employment, Government of India.