Hi,
I would be completing my 5 years in an MNC company on 10th Nov 2012 and I would be in need of funds during the year 2012 as I have taken a flat and would need to give payments for the demands that would be coming up in 2012.For that I want to use my PF next year when I would be completing 5 years .Now to use PF I have two options :
1) Take Loan on PF amount - Can I take loan for my flat on Nov 2012 which has been booked 1 year back . Please note that Bank is also financing the partial amount of my Home.
2) Withdraw PF Amount after leaving the company - I have read the rules that you can withdraw but you should be unemployed fro 2 months which I will not going to be . So, does it happen in practice as I have heard that may people withdraw money on changing jobs . I have asked my present company and they say they fill the withdraw forms and submit to PF office whenever employee wants to leave the company.
Please help me what option should I take as I want to use my PF amount at its fullest.
From India, Mumbai
I would be completing my 5 years in an MNC company on 10th Nov 2012 and I would be in need of funds during the year 2012 as I have taken a flat and would need to give payments for the demands that would be coming up in 2012.For that I want to use my PF next year when I would be completing 5 years .Now to use PF I have two options :
1) Take Loan on PF amount - Can I take loan for my flat on Nov 2012 which has been booked 1 year back . Please note that Bank is also financing the partial amount of my Home.
2) Withdraw PF Amount after leaving the company - I have read the rules that you can withdraw but you should be unemployed fro 2 months which I will not going to be . So, does it happen in practice as I have heard that may people withdraw money on changing jobs . I have asked my present company and they say they fill the withdraw forms and submit to PF office whenever employee wants to leave the company.
Please help me what option should I take as I want to use my PF amount at its fullest.
From India, Mumbai
First you must understand that if you took the 2nd option then you have to be unemployed for 2 months but when you apply for withdraw then both of your funds i.e. EPF and EPS will be withdrawn. In legal way you must be unemployed for 2 months.
And in case of 1st option you will be given loan which is given from EPF only and not from pension account. only 90% of the total EPF amount will be given (as in your case loan for purchase of land or house).
Choice is yours.
Stay Cool,
Atom
From India, Phagwara
19And in case of 1st option you will be given loan which is given from EPF only and not from pension account. only 90% of the total EPF amount will be given (as in your case loan for purchase of land or house).
Choice is yours.
Stay Cool,
Atom
From India, Phagwara
In 2nd option , there is a reqt of encumberance certificate which I believe says that the property should not be mortgaged with anyone . Since I have taken home loan its mortgaged with bank ? So would it be possible to take loan on PF ?
Also, about 1st option I agree there is a legal reqt for 2 months but just wanted to know that is it practically followed as people withdraw their PF amount and I came to know this rule only after surfing the else no one has ever told me so.
From India, Mumbai
Also, about 1st option I agree there is a legal reqt for 2 months but just wanted to know that is it practically followed as people withdraw their PF amount and I came to know this rule only after surfing the else no one has ever told me so.
From India, Mumbai
There is no problem of taking Home loan even the bank funds for the same. The necessary documents needs to be produced and take the home loan including the copy of the mortgaged property
Reg the withdrawal, you need to submit the form in such a way that the 2 months break is there, even though if the person joined in the new company, he will be treated as afresh employee with a new code number.
From India, Madras
Reg the withdrawal, you need to submit the form in such a way that the 2 months break is there, even though if the person joined in the new company, he will be treated as afresh employee with a new code number.
From India, Madras
So that means I have both the options to take the PF loan or withdraw the PF amount.
About 2 months unemployment , is there any cross check by the EPFO that the employee was unemployed for 2 months i.e. I am just worrying about what happen if they know ? What charges then the person would be entitled for ?
From India, Mumbai
About 2 months unemployment , is there any cross check by the EPFO that the employee was unemployed for 2 months i.e. I am just worrying about what happen if they know ? What charges then the person would be entitled for ?
From India, Mumbai
Unemployed in EPF sense i.e., you must not be employed where EPF is applicable.
Now about the cross check, EPFO does not cross check but it can check the condition if some information is given to the EPFO in this regard.
Charges means if they "found out". than you must bribe the officer and it is over.
Seriously if they know about, the liability will be yours and the employer.
From India, Phagwara
Now about the cross check, EPFO does not cross check but it can check the condition if some information is given to the EPFO in this regard.
Charges means if they "found out". than you must bribe the officer and it is over.
Seriously if they know about, the liability will be yours and the employer.
From India, Phagwara
Its not possible to Withdraw while in service as per my knowledge. Along with Withdrawing application (Form10C & 19)there are other supporting documents that has to be enclosed like Form3A,Form5/10 from the employer which will give the clear picture on when you joined and when you relieved from company. After that you can not continue PF contribution from same company. But you can withdraw if you are changing the employer means you go to another job.
From India, Bangalore
From India, Bangalore
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PF Withdrawl.doc
Online PF Withdrawl Process.pdf