EPF withdrawal for Home Loan Repayment: Due to the skyrocketing interest rates, if your home loan tenure is increasing instead of decreasing and it has become a cause of tension for you, then you can consider repaying the home loan ahead of time. To do this, you will need a lump sum amount. If you are employed and have a substantial amount deposited in your EPF account (Employees' Provident Fund account), then you can also use it to get rid of the expensive home loan. Let us know, what you have to do to repay the home loan from the amount deposited in the EPF account.
What do the rules of EPF say?
According to the rules of the EPF scheme, you can withdraw some part of the amount deposited in your EPF account even before retirement, provided it is to be used for certain purposes. The good thing is that these include purposes such as the marriage of children, education, and loss of job, as well as purposes such as buying a house, building it, repairing a house, and repaying a home loan. Up to 90 percent of the amount deposited in the PF account can be withdrawn for buying a house or repaying a home loan.
What to do to withdraw money from the EPF account?
If you want to withdraw money from your EPF account to repay your housing loan, buy a new house, buy land for a house, construct a house, or modify or repair an existing house, then the process is not very difficult. For this, you only have to give New Declaration Form and Utilization Certificate.
The withdrawal process for home loan repayment
What will be the complete process of withdrawing money from the EPF accountfor the purpose of repaying the home loan, we explain to you step-by-step:
First login to EPFO e-SEVA portal
To log in to the portal, you will need to enter your UAN number, password, and the captcha code displayed on the login page.
After login in, go to the Online Services section of the website.
Click on claim form 31 in the dropdown menu there.
After filling in the information related to your bank account, click on Verify.
Check the terms and conditions present there.
After reading and understanding the terms and conditions properly, go to the online claim and select claim settlement.
Select the purpose for taking advance from EPF.
Fill in the requested information like the amount to be withdrawn and your address.
Upload the requested documents.
Now you can submit your application.
