Loan on pf amount

Dear Safia, Provident Fund deducted by employer is protected and no loan can be advanced on that amount. The loan can be advanced on PPF account mantained by any person in any bank / post office. Feel free to contact on the mail id or mobile no.

Rajiv Bhasin Advocate

bhasin.laws@yahoo.com

9811210505

Interest Free Tax Free Advance from PF: Non-refundable advances from the amount standing to the credit of a member in the Fund can be sanctioned for the following purposes:

a.                   purchase of a house, {Para 68B}

Construction or purchase of house or flat/site or plot for self or spouse or joint ownership

- You should have completed at least five years of service.
- The maximum amount you can avail of is 36 times your wages. To buy a site or plot, the amount is 24 times your salary.
- Can be avail of it just once during the entire service.

b.                  repayment of a loan, for housing, {Para 68BB}

Repay a housing loan for a house in the name of self, spouse or owned jointly

- You should have completed at least 10 years of service.
- You are eligible to withdraw an amount that is up to 36 times your wages.

Alterations/repairs to an existing home for house in the name of self, spouse or jointly

- You need a minimum service of five years (10 years for repairs) after the house was built/bought.
- You can draw up to 12 times the wages, only once.

The scheme provides for payment of benefit by the Commissioner within 30 days from the date of receipt of claim application {Para 72(7)}

·  The amount of advance/withdrawal is not required to be refunded under normal circumstances. If the amount is not utilised, the same should be refunded with penal interest

·  A fixed minimum balance in the account will be kept before arriving at the amount of advance admissible subject to the above conditions

·  The RPFC/APFC in charge of the office has discretion to fix the quantum of advance

agreed with experts above.  You can take loan "from PF" and cannot take loan "on PF".  No PF including PPF can be mortaged.