Here is an article which is useful for employees as well as employers who are often facing this challenge of getting employee’s request for loan requirements due to the current ongoing pandemic. While we are all in the middle of crisis, which has health as well as a financial threat, this article is going to be a good resource. Covid cases are rising rapidly across India as more and more people have started getting infected by the highly contagious Coronavirus. At this juncture, people are worried about treatment cost for Covid.
EPF Withdrawal As an Option
In a relief for salaried class, employees having the Employees’ Provident Fund (EPF) account can withdraw money or take a loan on medical ground. According to norms laid down by the Employees’ Provident Fund Organisation (EPFO), employees can withdraw money for a medical emergency, construction or purchase of a new house, renovation of the house, repayment of home loan, and wedding purposes.
Documents Required For EPF Withdrawal for Covid Treatment
- The employee must show the KYC documents.
- The employee needs to have Universal Account Number (UAN).
- Employee’s bank account details must match with his or her EPF account.
- The Adhaar card should be presented which must have all the details in the correct form. For example one must make sure that father’s name and employee’s date of birth should match clearly with the id proof that the borrower decides to submit.
EPF Withdrawal Rules
Those, who want to withdraw money for the Covid treatment purpose, will be able to withdraw under the ground of medical emergency for a spouse, or member or parent or children.
In fact, if an employee or his/her parent, spouse or children fell sick due to Covid, the member can withdraw amount.
An employee can withdraw six times the monthly salary or employee’s share with interest (whichever amount is lesser) from the EPF for medical treatment including that of Covid.
On this type of EPF withdrawal, no lock-in period or minimum service period is applicable. Always remember the EPF withdrawal fund won’t be transferred to bank account of a third party.