EPFO: How to contract a mortgage, personal loan from your EPF account online? Step by step guide
The Employee Provident Fund or EPF is a centrally approved scheme providing retirement benefits for the salaried class. In addition to the tax advantages, you can benefit from a personal loan including housing on the EPF account. This option was offered by the Employers’ Provident Organization (EPFO) to employees. Although you are free to benefit from the loan from your EPF account, EPFO verifies the reason for the move.Read also – PF Rules 2021: Your EPF account can be deactivated if you do not follow this PF rule change
Mortgage loan: You can borrow money to buy a house or land. You can also avail the loan for the mortgage payment. Apart from this, you can also avail the loan to renovate or expand your home. Read also – Date of the UPSC EPFO 2021 exam: UPSC will soon publish the EPFO 2020 admission card; Exam on September 5
Apart from these, you can avail the loan for your own wedding, the wedding of your son and daughter. You can benefit from the loan for your studies or those of your daughter, son, brother or sister. You can avail the loan for medical treatment for your wife, daughter, son, parents in case of serious illness. You can take out a loan if there are losses due to a disaster. If there is a situation in which the salary is not withdrawn, the EPFO allows you to take out a loan. Read also – Provident Fund Withdrawal: You Can Benefit From Rs 1 Lakh Instantly Without Any Document | here’s how
Home loan eligibility: EPFO sets a few standards before allowing you to take out a loan.
If you are taking out the loan to buy the house or land, the property must be in the name of the borrower or their spouse or it can be jointly owned. You can receive up to 36 times the monthly salary and cost allowance for the purchase of a home. If you buy land, you will receive up to 24 times the monthly salary and cost allowance (DA). You must be in service for five years to qualify for this loan.
If you take out the loan for the payment of a home loan, you can borrow up to a maximum of 90 percent of the amount deposited by the employer and employee. You have to be in service for 10 years to qualify for the loan.
If you take out the loan for the transformation or renovation of your house, you can benefit from 12 times your salary and you must be in service for 5 years.
To qualify for the loan, you must have a Universal Activated Number (UAN), mobile phone number linked to UAN number, Aadhaar details, bank account details, IFSC code details, PAN number linked to UAN .
EPF loan – Step by step guide
– You must go to the Member e-SEWA website first. Then you need to log in with your UAN and password.
– You must go to the “Manage” section. After that, you need to verify your KYC details. These will include bank details, Aadhaar and PAN.
– After that, you must go to the “Online Services” section. You must select “CLAIM (Form – 31, 19 and 10C).
– Subsequently, you will be able to see the details of the member. You must enter the last 4 digits of your bank account. Once done, please click on “Check”.
– You must sign the commitment certificate by selecting “Yes”.
– You must select the “Make a complaint online”. Then you have to select “I want to apply for”. You must provide the reason you took out the loan, the amount you wish to withdraw and the employee’s address.
– The loan on an EPF account is generally transferred to your account within 15 to 20 days following the filing of the loan application and the employer’s agreement.