EPF Loan

A loan against PF, also known as a Provident Fund advance, is a type of loan that you can take out against the balance of your EPFO (Employees' Provident Fund Organisation) account. For a loan on PF you can borrow money from your PF without having to sell your investments or liquidate your savings.

The PF amount is typically based on your number of years of service and your EPF balance. The interest rate of EPF is at which the PF amount has grown, which can be withdrawn for your needs.

Why take a PF Loan?

A PF Loan provides a balance between meeting immediate financial needs and preserving your long-term retirement savings.

Here is why a PF Loan is a good choice for urgent financial needs because it offers:

  • Fast access to funds without liquidating your entire PF savings
  • Lower interest rates than traditional loans
  • Continued participation in potential market gains
  • Flexible repayment options
  • No impact on your credit score

Interest Rates for PF Loan

Interest Rates for EPF (Employees Provident Fund) is at the rate your money has grown in your EPF. Understanding these rates is key to making informed decisions and optimising the benefits of utilising your PF for financial needs.

EPF interest Rate for 2022-2023 8.15%.

Loan Against PF

EPF loans and PF loans are often referred to as loans against PF but they technically represent premature withdrawals from your Employee Provident Fund (EPF) account. Unlike traditional loans that require repayment with interest, EPF loans do not demand explicit interest payments. However, there is an implicit cost associated with these withdrawals.

Eligibility Criteria For PF Loan

To be eligible for a loan against PF, you must meet certain criteria set by the Employees' Provident Fund Organization (EPFO).

These criteria are designed to ensure that the loan facility is utilized responsibly and that members can continue to contribute regularly to their EPF accounts.

  • Should have a minimum service period of at least 5 years with your current employee.
  • EPF account balance must be sufficient to cover the loan amount you are applying for. The EPFO typically allows you to borrow up to 90% of your EPF balance, depending on your specific circumstances and the purpose of the loan.
  • You must have a regular contribution history to your EPF account. This means that you should have been making consistent contributions to your EPF account for at least the past two years.
  • Your employer evaluates your ability to repay based on salary, expenses, and existing debts.
  • Loan must be taken for specific purposes that are considered justifiable by the EPFO. These purposes typically include House purchase/construction, renovation, medical/education expenses, and marriage expenses.
  • You should not have any outstanding defaults on any previous loans taken against your EPF account or any other loans.
  • There is no specific age limit for availing of a loan against PF. However, you must be able to repay the loan within the maximum tenure, which is typically 10 years.
  • Your employer's consent is required for you to take a loan against PF. The employer will need to verify your employment details and EPF contribution history before approving the loan.

Looking for a Personal Loan? Apply now!

Documents Required For Availing PF Loan

Documents Required for Loan Against PF are the essential paperwork needed for a smooth application process.

Find the documents Required for Availing Loan Against PF below:

  • Form 19: It is required for the Final PF Settlement.
  • Form 10-C: It is required for pension withdrawal benefits.
  • Form 31: It is required for partial withdrawal (advance) of EPF in case of an emergency. It can be directly accessed from the Member Interface of EPFO Unified Portal.
  • Self-attested copy of UAN (Universal Account Number) card
  • Original salary slip for the current month
  • Self-attested copy of your bank passbook
  • Proof of address, identity
  • Proof of purpose of loan

Features & Benefits of PF Loan

Loan Against Provident Fund (PF) offers a range of features and benefits tailored to meet the financial needs of individuals. Here are some:


Enjoy convenient application
process for your loan

Low Interest Rate

Provides a cost-effective
borrowing option with lower
interest rates.

Zero Collateral

Enjoy collateral free
EPF loan.

Timely processing and

Ensures quick access
to funds when needed.

Flexible Loan

Flexible loan amount
based on PF balance and
years of service

Loan for Essential Needs

Use your PF loan for specific
needs and emergencies.

Loan Amount for PF Loan

The loan amount for a Loan Against PF is typically determined based on various factors, and it can vary between financial institutions or employers.

Commonly, the loan amount is a percentage of the accumulated Provident Fund balance. The exact percentage and the maximum limit may be specified by the lending institution or governed by the rules of the Provident Fund scheme.

Individuals considering a Loan Against PF should check with their employer or the relevant financial institution. It is important to understand the specific criteria used to calculate the loan amount and any limitations imposed on the borrowing.

Here are some general guidelines for loan amount:

  • For housing: Up to 90% of EPF balance for purchase or construction, and up to 75% for renovation or repair.
  • For medical expenses: Up to 90% of EPF balance, including expenses for yourself or dependents.
  • For education expenses: Up to 90% of EPF balance, including expenses for yourself or dependents.
  • For marriage expenses: Up to 50% of EPF balance.

How to Apply For a PF Loan

Navigating the process of applying for a Loan Against PF is a streamlined experience. This involves a series of simple steps designed to provide you with access to funds while preserving the integrity of your long-term financial plans.

Check the steps below to see how to apply for a PF loan:

  • Check Eligibility:
  • To ensure your eligibility criteria, you must at least be an EPFO member for at least five years, have completed two years of service with your current employer, and not have availed of a PF loan in the past five years.

  • Gather Required Documents:
  • Collect the necessary documents, including your UAN, PAN card copy, Aadhaar card copy, bank account details, employment proof, and residence proof.

  • Choose Application Method:
  • Decide whether to apply online or offline.


    Online Application: Visit the EPFO website, log in with your UAN, navigate to "Member Online Services," select "Claim (Form-31, 19, 10C & 10D)," enter your bank account number, verify, sign the undertaking, review the details, and submit.

    Offline Application: Download Form-31, fill it out, attach the required documents, and submit it to your employer or the EPFO office.

  • Processing and Approval:
  • The EPFO will review and process your application. Upon approval, the loan amount will be credited to your linked bank account.

Looking for a Personal Loan?

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A Loan Against PF is a type of loan that allows you to borrow money from your Provident Fund(PF) account.

Yes, you can avail of a loan against your Employee Provident Fund (EPF) if you meet certain eligibility criteria.

The eligibility criteria for getting a loan against PF are: you must be an active EPFO member for at least five years, have completed two years of service with your current employer, and not have availed of a PF loan in the past five years.

The maximum loan amount you can borrow against your PF account depends on your PF balance and your number of years of service. You can borrow up to 90% of your PF balance if you have completed five years of service, or up to 80% if you have completed less than five years of service.

The interest rate for a loan against your Public Provident Fund (PPF) account is currently 1% per annum. This rate is subject to change periodically based on the decisions of the Central Provident Fund (CPF) Board.

Yes, you can use the loan amount for various purposes, including medical expenses, education expenses, home renovation or construction, home purchase, and other emergencies.

You can apply for a loan against your PF account either online or offline.

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