General Provident Fund: There is good news for the subscribers of General Provident Fund or GPF and the government has given them some relaxation in the rules for withdrawing advance money from GPF. Now these rules have been brought at one place and their information and rules have been combined to make it easier for the subscribers.
What is given in the circular
The Finance Department has issued a circular regarding this in which information has been given about relaxation in some conditions for withdrawing advance money from the General Provident Fund. The department has released information related to this from time to time but now it has been put in one place. With this people will be able to understand them easily.
Permission to withdraw advance money is given for these works
Under General Provident Fund, subscribers i.e. government employees are allowed to withdraw advance money for the following things-
In this, permission is given to withdraw money for primary, secondary and higher education. You can withdraw money for all types of streams and institutions.
2. Mandatory expenses
Engagement, wedding, funeral or other functions for oneself or other dependents of the family.
3. For the treatment of disease
You can withdraw money from GPF for the treatment of illness of yourself or other dependents of the family.
4. To buy consumer durables
If you want to withdraw advance money from GPF for purchasing consumer durables, you can withdraw it.
What are the rules for withdrawing money
Either you can withdraw an advance amount equal to 12 months’ salary or three-fourth of the credit amount i.e. whichever is less. Subscribers must have completed at least 10 years of service. However, for the treatment of illness, permission is given to withdraw up to 90 percent of the credit amount.
Facility to withdraw money even for building a house
You can also withdraw money to build a house or to buy a ready flat which can be a residential property for you. There are some conditions under this such as-
- For repayment of outstanding housing loan
- You can withdraw money to buy land for building a house
- You can take money in advance to build a house on the land
- To reconstruct or carry out some additional construction work in an already existing house
- To renovate, reconstruct or alter the ancestral house
For this work, 90 percent of the amount can be withdrawn from the existing credit, but there is a condition that if advance money has been taken from GPF for the works related to house construction, then it will have to be deposited back again. This money will be received only when the subscriber is in service. It is clear in the rules for withdrawing advance amount of GPF that if money is taken to build a house, then it will not be considered under HBA rules.
To buy two wheeler or 4 wheeler
You can withdraw money to buy a motorcycle, car or scooter or for repayment of the earlier loan related to it. You can withdraw money for overhauling or extensive repairing of the car. You can withdraw money to pay deposit for buying a motor car or bike or scooter. For this, permission is given to withdraw three-fourth of the credit or the cost of the vehicle, whichever is less. Money will be received only if 10 years of service have been completed.
Things to keep in mind
This amount can be sanctioned through the declared Head of Office.
The advance amount can be recovered in a total of 60 installments.
What is GPF
Just like there is Public Provident Fund i.e. PPF scheme, similarly there is GPF but it is only for government employees.
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