I’m planning to take a home loan and heard that EPF can be used for it — how much of my EPF balance can I withdraw to support a home loan?
When I was planning to buy my first home, I was surprised to learn that EPF savings can actually help fund a home loan. This can be a great way to reduce the loan burden or pay off part of it early.
1. Eligibility for EPF Withdrawal for Home Loan:
• You need to have at least 5 years of continuous service.
• The EPF account should be active and linked to your UAN.
• Partial withdrawal can be made for construction, purchase, or repayment of a house.
2. How Much Can Be Withdrawn:
• You can withdraw up to 90% of your EPF balance (employee + employer contribution excluding the EPS portion) for repayment of a home loan.
• The withdrawal limit also depends on the actual cost of the house and the outstanding loan amount.
• Multiple withdrawals are allowed, but the total cannot exceed the required amount for the home loan.
3. Process Tips:
• Apply online through the EPFO Unified Portal for faster processing.
• Ensure your bank account, UAN, and Aadhaar are updated to avoid delays.
• Using EPF for a home loan can significantly ease the financial burden if planned wisely. From my experience, it’s worth exploring this option before taking additional loans.
For official details, you can check the EPFO website: