What is the minimum holding time before applying for payment of Home Loan EMIs from EPF? For repayment of Principal Amount, the holding time is 10 years old since inception, so what about enrolling for repayment of Home Loan EMIs? And if we sell the home after few years, how do we stop the standing instruction for the same?
1 Answers
Hi,
The eligibility service period is 10 years for payment of home loan EMIs through your EPF account.
You can give an instruction to EPFO to pay a fixed amount every month to your loan account. You have to fill up a form and get it attested by manager of the bank branch where you took the loan and submit to EPFO.
The applicable form is available and can be downloaded from this article ..
You can now use your EPF balance to repay your home loan EMI either fully or partly. You can instruct the EPFO to deduct monthly amount from your PF balanced and the same will be transferred to your Loan account, as long as there is sufficient EPF balance in your account. This transfer will be active as long as you are the member of EPF. Once your membership of EPF ceases, then EPFO will stop to repay the loan.
I believe you can also submit cancellation of Standing instruction to the EPFO. You may submit a grievance request to the EPFO via this link and get more details on this topic.
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