Step-by-Step Guide for PF Amount Withdrawal for Home Loan Repayment

EPFO is expanded as an Employee Provident Fund Organization which is a Government run scheme where employees and their employers contribute a monthly instalment in the name of the employee. He or she can use this fund post their retirement and hence it works as a retirement or pension plan. However, the employee can utilise some percentage of this fund before retirement for multiple reasons and we will discuss a similar one in this article. Keep reading this article to learn the step-by-step guide for PF amount withdrawal for home loan repayment.

Step-by-Step Guide for PF Amount Withdrawal for Home Loan Repayment

Home loan interest rates have recently increased after the RBI repo rate increases. For both new and existing customers, some banks have raised their interest rates. Discussions on what borrowers should do to lower their interest payments against their outstanding loan amount arose as a result of the rising interest rates on house loans. They can consider prepaying their house loans in full or in part with the money from their Employees Provident Fund (EPF).

EPF Balance can be withdrawn for repayment of home loan:

According to Section 68BB of the EPF Scheme, an employee can withdraw the EPF amount for the purpose of home loan repayment. However, there are certain conditions attached to this and here are those:

  • The house must be registered under the name of the PF member.
  • If the house has a joint registered name, then the PF member should be one of them.
  • The PF member should be making contributions to his or her account for at least 10 years.
  • After five years of uninterrupted service, the withdrawn PF amount shall not be taxed.

How to withdraw your PF savings for repayment of home loan:

Let us look at the step-by-step process for withdrawing your PF savings for the purpose of home loan repayment:

  • Go to the EPFO e-SEVA portal and log in with your credentials.
  • Use your UAN, password and captcha code available on the screen.
  • Find ‘Online Services’ and click on it.
  • Please enter your correct bank details carefully.
  • Please go through the terms and conditions and confirm them.
  • Select the correct reason for the withdrawal of savings from your EPF.
  • Enter the required details followed by uploading your documents.
  • Use the OTP sent on the mobile number registered with your Aadhaar Card.
  • Submit your application.


In this article, we learnt the step-by-step guide for PF amount withdrawal for home loan repayment. I must mention that if your home loan interest is larger than your EPF interest, then you will be able to reduce your interest outlay by paying off with EPF corpus. However, if your EPF interest is greater or even equal to your home loan interest, then I suggest you preserve your EPF corpus and not use it to pay off your home loan.

Please share this article with people who are planning to get a home or have already bought one on loan.

Also Read:

A Complete Guide to the Process of EPF Withdrawal Online

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