Is there any possibility of withdrawing money from EPF to pay back the home loan?

I am 41 years married and reside in Chikkamagaluru. I have been working with an MNC Company for the last 7 years. I have availed a joint home loan with my spouse a year ago and pay EMI's regularly. I have heard that I can withdraw money from my EPF to pay back the home loan? If yes, then how much? Kindly advise?

Asked by : Kiran - Chikkamagaluru | 41 Views

The EPFO allows you to withdraw money from your EPF account to fund the purchase or construction of house or flat or to buy land. EPFO members will be able to withdraw up to 90% of their accumulation (employer's as well as employee's contributions, including interest) in the PF account or the cost of the property, whichever is less to provide for the purchase or construction of house/flat or for buying land. Monthly installments can be made from the PF money against any outstanding loan in the name of the EPFO member or even your wife, provided both are EPFO members.For payment of equated monthly installment (EMI) through your EPF account, banks or lending institutions will consider the contributions made to an your PF account over the past three months to calculate the EMI. For withdrawals 3 conditions must be met: 1. You need to be a member of EPFO for at least three years. 2. The accumulation in your PF account (or together with the spouse), including the interest, has to be more than Rs 20,000. 3. It can be withdrawn only once. To withdraw money under this scheme, you have to be a member of the co-operative society or a society registered under any law for housing purpose and should have at least 10 members.