I have contributed to the fund for nearly 12 years. I have joined a new organisation now. I have a Home loan with HDFC bank. Can I withdraw the entire amount lying in PF to adjust the Home Loan? If so what is the procedure? How much can I withdraw? more
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Dear Vinod, 1) Your PF contribution is only for retirement purpose only. Not for other purposes. 2) You can take a home loan benefit in your Income Tax (Interest & Principal amounts) 3) I will suggest not to withdrawal PF, you will transfer PF to your existing employer and make a big fund for your retirement & other necessary needs. more
Sep 08
you cannot withdraw the employers share , Contribution to pension fund . You can only withdraw around 80% of your share . more
Sep 06
1. If you have not transferred PF to new organisation, you can withdraw complete amount. 2. If you have transferred PF to new organisation, you can obtain loan or apply for partial withdrawal for home loan payment. 3. Personally, just look this and decide: A. Hoam loan interest at present is approx 9.5 to 10.00 (if you paying more switch to other bank). B. PF interest given to last year is 8.7 (check exact figure) C. Interest paid to Hoam loan upto 2 lack was directly deducted from income. (5 lac income - 1 lac interest = 4 lac income to calculate tax) D. Principal amount which was part of EMI is consider as investment under 80c. Subject to 1.5 lac investment, it is deducted from income to calculate tax. E. Interest rate for PF loan is interest rate declared by gov. (Eg. Last year 8.7) + 2%(= 10.7). So overall you are making completely financially wrong decision. Note: if you continue PF and not withdraw then interest rate is compounding, which was much more than reducing interest rate in home loan. more
Sep 06
Dear Venugopal, In my opinion as per rule you can withdraw 80% of total amount if rule not changed, but PF is for after retirement. Be cautious. more
Sep 05
