Do you know about 5 benefits of EPFO?

 

1st: PF against Loan:

 A PF account holder can take a loan against their PF balance and the PF loan interest rate levied is only 1 percent if there is a financial emergency. Within 36 months of loan disbursal, the loan has to be repaid.

2^nd: Absolutely free Insurance by EPFO:

Under EDLI scheme, in case of death during the service period, a PF account holder by default becomes eligible for free insurance up to Rs 7 lakh. Previously, the death cover was Rs 6 lakh. Under the EDLI scheme, the PF account holder need not pay any insurance premium for the death cover.

3^rd: Repayment of Home Loan:

One can withdraw up to 90 percent of the PF balance for buying a new home or constructing a home, as per EPFO rules. So, PF account can be used for home loan repayment and through PF balance, one can buy land as well.

4^th: Emergency Withdrawal:

Object to some terms and conditions, in case of medical or financial emergency, EPFO allows partial withdrawal.

 

5^th: pension Scheme:

A PF account holder is eligible for pension after 58 years as well. However, to become eligible for the pension, there has to be a minimum of 15 years of regular monthly PF contribution in one's PF account. The pension benefit comes from the employer's contribution as 8.33 percent of its contribution (out of 12 percent) goes to the EPS account of the PF account holder.