Ravi Kumar has been employed at XYZ Private Ltd. for the past 12 years and is a member of the Employees' Provident Fund (EPF). Due to financial difficulties, he has taken a personal loan of ₹5,00,000 from a bank. To repa
CS Executive · Setting Up of Business, Industrial and Labour Laws · PYQS · June 2025
Ravi Kumar has been employed at XYZ Private Ltd. for the past 12 years and is a member of the Employees' Provident Fund (EPF). Due to financial difficulties, he has taken a personal loan of ₹5,00,000 from a bank. To repay this loan, he wishes to withdraw a portion of his EPF balance and has submitted an application to the Employees' Provident Fund Organization (EPFO). Based on the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, answer the following questions: Is Ravi Kumar allowed to withdraw his EPF balance to repay a personal loan?
Answer & Explanation:
Answer 6(c) (i) No, the EPF Scheme, 1952 does not allow employees to withdraw funds for repaying personal loans. Withdrawals are permitted only under specific grounds such as medical emergencies, home loan repayment, marriage, higher education, or unemployment.
Topics: Labour Laws
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