The biggest advantage of EPFO- PF account is that the account holders get the money back with interest only after a few years of depositing money in it. Apart from this, if needed, you can also take a loan from the PF account. Loan can be taken from this PF account only after two years of opening.
New Delhi. If you are employed then you must have deposited money in PF account. The biggest advantage of the PF account is that the account holders get the money back with interest only after a few years of depositing money in it. But do you know that along with insurance on PF account, you also get loan facility.
Let us tell you that if needed, you can also take a loan from the PF account. So let’s know how to get loan on EPF and what are the rules regarding loan on PF account?
Know how to get loan?
The loan received on the money deposited in PF is called PPF Loan. You cannot take money in this loan like a personal loan, for this you get money on the basis of the deposit amount. Keep in mind that if your PPF account is not active then you cannot take a loan against it. Apart from this, until the first loan taken against PPF is not repaid, the second loan cannot be taken on it.
Know how much loan is available up to Rs.
Let us tell you that you get this loan only on the basis of the amount deposited in PF. Loan can be taken from this PF account only after two years of opening. If you have been depositing money for one year, then you cannot take a loan. In the third year, you can take a loan of only 25 percent of the deposited amount in two years. At the same time, if the PF account is there for a long time, then you can also complete it withdrawal.
Know how much interest is charged?
Earlier, to take a loan on PPF, the account holder had to pay 2 percent interest, but the government has reduced it to one percent for 2020. Although this interest is percentage, but after deducting the interest on PF, this amount remains only 1 percent. However, for the number of days you take this loan, you do not get the interest from the government on the PF account.
Learn how to apply?
If you want to apply for this then you will need Form D for this. You can take it from your bank or download it from the bank’s website. After this you have to deposit it in your bank, after which the loan process starts.
