Should I withdraw my PF or take loan?

Is it better to withdraw PF or take loan?

As the yield on PF contribution by way of interest is considerably higher than the prevailing home loan rates, it is advisable that withdrawal from PF should be considered as the last resort and only after evaluating the availability of other sources of funding such down payment.

Is it a good idea to withdraw PF?

Experts in the matter say that if the employees leave the job or are fired due to some reason, they can still leave PF for a few years. If they do not need PF money, it is better not to withdraw it immediately.

What are the disadvantages of withdrawing PF amount?


  • The member withdraws amount which is usually blown away by discretionary expenses and retirement savings are back to square one.
  • If the individual withdraws his Provident Fund balance before completing five years then the amount becomes taxable.

Will I get interest on my PF amount if I don’t withdraw?

As per the existing provisions under the Indian Provident Fund (PF) law, an EPF account becomes ‘inoperative account’ and does not earn further interest, once an employee retires from service after attaining the age of 55 years, migrates abroad permanently or dies and does not apply for withdrawal of his accumulated …

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Is PF loan refundable?

Under this provision, non-refundable withdrawal to the extent of the basic wages and dearness allowances for three months or up to 75% of the amount standing to member’s credit in the EPF account, whichever is less, is provided. Members can apply for lesser amount also.

Can I take loan on my PF account?

Loan Against PF. An individual having a PF account can withdraw funds from the account as loan. Partial withdrawal is possible in case the loan is towards buying/repairing a house. The employee should be in service for 5 years to be eligible to get loan against PF.

Can I withdraw 100% PF amount?

As per the new rule, EPFO allows withdrawal of 75% of the EPF corpus after 1 month of unemployment. The remaining 25% can be transferred to a new EPF account after gaining new employment. As per the old rule, 100% EPF withdrawal is allowed after 2 months of unemployment.

Why we should not withdraw PF?

One of the major disadvantages of early PF withdrawal is that if you withdraw the entire amount before contributing for five years, then you won’t be able to claim any tax benefits under section 80C of the income tax act.

Can we withdraw PF full amount?

An individual’s PF amount can be withdrawn either completely or partially. To withdraw said amount completely, the individual needs to be either retired or be unemployed for a period of more than two months. Upon which, the amount can be withdrawn pending an attestation from a gazetted office.

How much is PF loan?

Quantum of COVID-19 Emergency Advance: You can avail the non-refundable advance up to the sum of 3 months’ wages and dearness allowance or up to 75% of the EPF account balance, whichever is less.

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Can I continue my old PF account to new company?

The PF account can be transferred from the old employer to the current employer online only if your Aadhar is linked with your PF account.