If you are using EPF to repay the arrears of a home loan, then you should keep some things in mind.
EPF is the best way of saving people. Actually, the money is deducted every month from his salary and a considerable amount accumulates for retirement. But, it is not that you can use the money deposited in EPF only at the time of retirement. You can also use it on many occasions before, including home loan repair, marriage, education, medical emergency, buying a home or renovating, etc.
In such a situation, if you are using EPF to repay your home loan, then you should keep some things in mind. First of all, you have to understand that if you are withdrawing money to pay a home loan, then what are the conditions of it, as well as you will know that it is right for you to withdraw money for a home loan…
What are the conditions for withdrawing money for home loan payment?
If you want to withdraw money from a PF account for home loan repayment (PF Account Wothdrawal), then you can withdraw money in the same situation when you have been working for more than 10 years. Also, if you or your wife have a home loan on your property, then you can withdraw this money. You can withdraw at least 36 months basic salary and dearness allowance and this includes the amount of interest.
How much is this decision correct?
Many people have questions that they are withdrawing money from PF and repaying their home loan and whether this is the right decision. However, this decision depends on your loan amount and PF amount. If your home loan is still a long way and you have to pay a lot of interest from it, then you can give it through a PF account. If the loan is left for one year, then you have already given interest to the bank, then you will not benefit much. Actually, the bank charges interest first. Also, you should compare on the interest charged on your loan and on the interest received on the PF account whether you are really benefiting from doing so or not.
When can I withdraw money?
If you want to get treatment for yourself or any member in your family and you need money for this, then you can easily withdraw money. However, in this, you have to give information about the history of the disease for more than a month and some important facts have to be given. Also, you can withdraw PF money for the wedding of someone in your family. Apart from this, when you are planning to buy a plot, you can withdraw money from provident funds. Not only this, you can also withdraw money while building a house and during this time you can withdraw money 36 times of salary.