The Employees’ Provident Fund (EPF), commonly known as PF (Provident Fund), is a mandatory scheme for all employees of eligible organisations.
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As per EPF rules, employees are required to contribute 12 per cent of their basic pay monthly to this fund. Additionally, the employer must contribute an equal amount to the employee’s PF account. The deposited amount in EPF accounts earns interest annually.
Upon retirement, employees have the option to withdraw the entire accumulated sum in their EPF. However, this article elaborates on how individuals can make premature withdrawals from the EPF account, as well as the conditions under which such withdrawals are permitted.
Here’s a step-by-step guide to applying for a loan against EPF
Follow these steps on the EPFO online portal to avail an EPF loan:
1. Log in to the UAN member portal using your credentials.
2. Click on ‘Online services’ from the top menu bar.
3. From the dropdown menu, select the option of ‘Claim (Form-19, 31 & 10C).
4. The next screen that opens will display all the member details.
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5. On this screen, you need to enter the last 4 digits of your bank account number and click on ‘Verify’.
6. Sign the Certificate of Undertaking by clicking on ‘Yes’ and proceed with the steps.
7. Now, to withdraw your funds online, you need to select the ‘PF Advance (Form 31)’ option.
8. This will open a new section of the form, asking you to select the ‘Purpose for which withdrawal advance is required’.
9. In the same section of the form, you will be asked to enter the withdrawal amount along with the employee’s address.
10. After entering the details, ensure to tick mark on the certification to finally submit your EPF withdrawal application.
11. It is important to note that depending on the purpose of your withdrawal, you might also be asked to submit certain scanned documents.
12. After completing all the formalities, click on ‘Get OTP’.
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13. Enter the OTP sent to your registered mobile number and your request will be submitted.
