In case you need any kind of financial aid you always think to get a loan, whether it is a personal loan or mortgage loan. But if you are a government employee then you can get a loan against your PF too. PF stands for the provident fund; it is a part of your monthly income that gets deducted every month and it is given to you when you leave the company or the organization.
You can get this loan for the study of your son or your daughter. EPFO allows you to get money for the higher education of your children. It can be for the study of your brother, sister for yourself even.
The wedding is also a common reason to get this loan. Just like the education, you can get this loan for the wedding of your son, daughter, brother, sister, or your own marriage.
- Medical Purpose
A medical emergency can come at any time. It is very unpredictable you don’t know when you need urgent money for yourself or for any of your family members. And we all know that medical facilities are so costly in India. So in case you have a lack of funds and your savings are not being enough to pay the medical bills then you can get a loan against your provident funds.
- To Buy a Home
You can get this loan to buy a new home too. Because buying a home is not that easy nowadays.
- To Return Home Loan
Besides buying a home you can get this loan for the repayment of your already running home loan.
In case of the lockout also you can get this loan. The lockout is a situation in which the employee is terminated temporarily by the employer until some terms and conditions are agreed to.
Sometimes you want to get this loan before retirement for corpus purpose.
Sometimes in calamity, you need instant funds. Then you can also get this loan. calamity is a situation of sudden disaster.
- To Remodel Home
You can get this loan to remodel or to renovate your home as well.
These are some reasons that you can get a loan against the PF.