Frequently Faced Challenges
Section IV - Funding options when income is lost, or loan default has already occurred
- The first line of funding should be redemption of investments.
- Employees can withdraw up to 75 percent of the account balance or 3 months’ basic salary and dearness allowance, whichever is lower from their EPF (Provident Fund) account. Those who have availed of this advance earlier can avail a similar advance once again.
- Partial withdrawals from the NPS account are allowed to fulfill financial needs towards treatment of the COVID-19 illness of a member, his/her spouse, children (including adopted child), or dependent parents. The following documents must be provided to claim a partial withdrawal:
- Medical certificate; and
- Formal request for partial withdrawal
- If it is a short-term requirement and there is a possibility of repayment in near future, then loans against movable assets such as jewelry, life insurance policies with surrender values, government securities, small savings instruments like national savings certificates, shares, bonds and mutual fund units etc. can be availed.