How Can You Withdraw Your Public Provident Fund for Your Home Loan Repayment?

How Can You Withdraw Your Public Provident Fund for Your Home Loan Repayment?

While availing a home loan is a prudent measure that comes with an affordable home loan interest rate making your goal of becoming a homeowner easy, it is even important for you to timely repay your outstanding dues on the loan in full? The best home loan interest rates range anywhere between 8 per cent and 16 per cent per annum. In the case you are unable to repay your home loan EMI, or you think that you may miss out on your home loan, then you can consider pulling out some funds from your employee provident fund to make the repayment on time. Here’s how you can withdraw the funds from your provident fund.

How can you withdraw provident funds for home loan repayment?

You can withdraw the provident fund proceeds to make repayment of your home loan. You may withdraw the EPF (employee provident fund) of an amount of up to 90 per cent to repay the home loan. Employee provident fund can simply be withdrawn at 55 years of age for the retirement purposes. But you can withdraw the same earlier and even for purposes like wedding expenses, home renovation, financial exigencies, education expenditures, home purchase or construction, etc.

What are the steps you must follow to withdraw your provident fund?

Step no. 1 – Sign into the portal of EPFO e-SEVA.

Step no. 2 – Place in your UAN, passcode and captcha code as mentioned to sign in.

Step no. 3 – Click on the online services option.

Step no. 4 – Choose the claim form 31 from the dropdown.

Step no. 5 – Input your bank info and hit on verify.

Step no. 6 – Check terms & conditions after you read.

Step no. 7 – Go ahead with online claims and choose the claim settlement option.

Step no. 8 – Choose the purpose of advance.

Step no. 9 – Input details like amount required as well as address.

Step no. 10 – Upload the required documents.

Your application is submitted after completing all your measures.

To withdraw your PF (provident fund) amount to repay your home loan EMI, you must follow the listed steps – 

  • Review your eligibility – You can withdraw your provident fund amount for home loan repayment if you have completed 5 years of constant service with your company or employer. In case you have not finished 5 years, you might not qualify for the withdrawal.
  • Fill out the form – You require filling out the form 31 to withdraw your provident fund amount. The EPF withdrawal form can be downloaded from the EPFO (Employees’ Provident Fund Organisation) or avail it from your organisation or employer.
  • Attach the documents required – You require to attach the documents like the home loan agreement copy, ownership proof of the home property and letter from financial institution or bank mentioning the outstanding loan proceeds and rate of interest.
  • Submit the form – You require submitting the filled-out form as well as documents to the regional office or the employer.
  • Wait for approval – After you have submitted the form, EPFO will authenticate the documents as well as process the request for withdrawal. It might take just a few days to some weeks to receive the approval.
  • Receive the funds – Once your request for withdrawal is approved, the provident fund proceeds are credited to your savings account.

Remember that it is crucial to remember that the highest amount that you can withdraw is limited to a particular percentage of the overall provident fund balance and this percentage might differ based on the withdrawal purpose. Moreover, withdrawing funds from provident fund accounts might affect your savings for retirement so it is recommended to consult an advisor before you make any such decision.

What are the things you must check before filing withdrawal requests from your EPF account through the online route?

Before filling out the EPF withdrawal application on the EPF account through the online route, ensure to go through the listed eligibility conditions. These conditions include –

  • The UAN (Universal Account Number) must be activated.
  • Aadhaar number must be linked as well as authenticated with UAN.
  • Bank account with correct IFSC must be seeded with the UAN.
  • EPF accounts should be KYC compliant.
  • You will get an OTP on your phone that is attached with your Aadhaar card. Ensure it is activated.
  • Accurate DOB or date of birth must be updated in your EPFO record, in the case of retirement.

What are the things you must consider before withdrawing your provident fund amount?


As stated previously, you can make PF amount withdrawal for repayment of your home loan just if you have finished your 5 years of constant service with your organisation or employer. In case you have finished five years, you might not be eligible to make the withdrawal.

Also Check: Best Home Loan Interest Rates

Maximum withdrawal limit 

The highest amount that can be withdrawn depends on a particular percentage of your overall provident fund balance and the percentage might differ based on withdrawal purpose. For repayment of the home loan, you may withdraw a maximum amount of 90 per cent of your provident fund balance.

Tax implication

The amount that you withdraw from your provident fund account for repayment of your home loan is free of tax. But if you withdraw before finishing 5 years of constant service, the amount withdrawn is added to your taxable income and is accordingly taxed.

Home loan repayment 

Withdrawing the provident fund amount for the home loan EMI repayment can lower the burden of making the EMI repayment, but you must still make sure that you have sufficient funds to mitigate your periodic expenses as well as exigencies.

Impact on the retirement amount 

Withdrawing funds through your provident fund account may affect your retirement savings. The provident fund account is formed to offer an adequate corpus to your post retirement years and taking out funds from this account can lower the amount available at the retirement time. It is recommended for you to consult with the financial advisor to evaluate the impact of withdrawal of your retirement savings from your EPF.