Need money to buy a house, pay hospital bills or fund your child's education? You may not have to rely only on savings or take a loan. If you are an EPF member, you can withdraw part of your Provident Fund (PF) balance before retirement.
These partial withdrawals, known as EPF advances, can be used for specific needs such as buying or building a house, medical treatment, higher education, marriage and home loan repayment.
Medical Emergency
EPF members can withdraw money for medical treatment of themselves, their spouse, parents or children. There is no minimum service requirement for this withdrawal.
The amount allowed is the lower of the employee's contribution with interest or six times the monthly salary (Basic + Dearness Allowance).
There is no lock-in period or minimum service period for this type of withdrawal
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Higher Education
EPF members can also withdraw money to pay for higher education.
The facility is available for your own education or for your children's education. You must have completed at least seven years of EPF membership to be eligible.
Repayment Of Home Loan
PF savings can also be used to repay a home loan. Employees need to complete at least three years of EPF membership to become eligible. Up to 90% of the PF balance can be withdrawn for home loan repayment.
Apart from this, EPF members can withdraw money to buy a plot, purchase a house or construct a home. The property should be in the employee's name or jointly owned with their spouse. The member must have completed at least five years of EPF membership to become eligible.
The house must be registered in the employee's name or jointly owned with their spouse. The employee must have completed at least five years of total EPF service.
A member can withdraw up to 12 times their monthly salary (Basic + Dearness Allowance) from their PF account.
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The withdrawal limit depends on the purpose. For buying a plot, members can withdraw up to 24 times their monthly salary. For buying or constructing a house, the limit can go up to 36 times the monthly salary.
In addition to this, you can withdraw PF money for your own marriage or the marriage of your siblings or children. The member must have completed at least seven years of EPF membership. Up to 50% of the employee's contribution, along with interest, can be withdrawn.
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