26 March 2012
Dear Sir, I am having a query on EPF account.
If I withdraw amount for a Home (Purchase a flat) from my EPF account and at the time i also declare that the house is free of encumbarances. now after that if i take a home loan should there be any issue ? with EPF act.
can i again withdraw the amount to repay the same home loan if from nationalised bank.
29 March 2012
You have a EPF account in which there is balance accumulated since past many years and you have taken a loan for purchase of a house. The materiality is this that you have not taken any loan for the house as against the loan against EPF you have not deposited any title deed. The what you have done? you have withdrawn your deposit before maturity which will be adjusted against your amount payable to you on your retirement hence you are not giving any false statement and you can have the loan against your house from any Bank
Querist :
Anonymous
Querist :
Anonymous
(Querist)
29 March 2012
THanks and appreciated sharing time to resolve my query ,i am briefing further details 1 Jan 2005 I bought House and made agreement for 15 lakhs 1 FEB 2005 i applied to EPF 1 Mar 2005 i took home loan from Nationalised Bank for rupees 10 lakhs
1 April 2005 I recievd amount from EPf around 1 lakh
now again on 1 jan 2008 i applied in epf to withdraw further amount. they replied me that i already declared on 1 feb 2005 that this house is free of encumbarances then you did wrong. because there is a home loan. i answered their queery stating i applied later. and Home loan should not considered as encumbarance. after that no further query made from my end and nor i recieved amount. so is it proper to approach again ? i was totally unware about this declaration at the time of applying first time otherwise i would have not been declared any such thing. please advise it will help me a lot