News Karnataka
Thursday, November 30 2023
Personal Finance

Top Tips To Unlock the Full Potential of The Provident Fund

EPFO Money
Photo Credit : By Author


Most people often find themselves worrying about the financial security of their family after their retirement. Everyone wishes to enjoy receiving a steady income even after retirement. We have the perfect solution to end all such worries. Investing in a provident fund proves to be an extremely beneficial decision for everyone.

The best part? Anyone can conduct a PF balance check anytime as per their wish.

Want to know more about provident funds and how to unlock their full potential? Continue reading to know all about provident funds and their special perks.

What is a Provident Fund?

Before delving into the topic of the perks of a provident fund and doing a PF balance check, let us first understand what it is.

A provident fund (PF) is a voluntary investment fund that helps people achieve their financial goals. This is a government-managed retirement savings scheme.

Under this retirement-oriented investment scheme, employees contribute a portion of their income towards this fund every month. These monthly contributions grow and are available as a lump sum amount upon retirement or termination of the employment contract conveniently.

Managed by the Employees Provident Fund Organization (EPFO), PF offers a variety of benefits to its members including income tax exemption up to Rs. 1.5 lakh in a financial year, and many more.

How to Unlock the Full Potential of Provident Fund

These days a plethora of people opt for investing in PF. Listed here are some of the tips and perks that one can apply to unleash the full potential of one’s provident fund with ease.

#Tip1: Take a Loan Against PF Balance. Check Now!

As a provident fund account holder, an individual holds many privileges. One, they can take a loan against their PF account balance. The best part? The provident fund loan interest rate levied is just 1% in case of financial emergencies. However, people who are planning to take a loan against their provident fund must remember that they would have to repay the loan within 36 months of loan disbursal. So, don’t wait and do a PF balance check today and take a loan.

#Tip2: Receive Free Insurance

Under the Employees Deposit- Linked Insurance (EDLI) scheme, in case of death during the service period, the PF account holder automatically becomes eligible to receive free insurance up to Rs. 7 lakhs. Earlier the death cover was capped at Rs. 6 lakhs but it has increased now. Moreover, under the EDLI scheme, the provident fund account holder is not required to pay any insurance premium for the death cover.

#Tip3: Partial Withdrawal In Case of an Emergency

Financial insecurity is a cause of concern for many in times of emergency. However, as per the rules, EPFO allows PF account holders to withdraw partially in case of a medical or financial emergency. Please note that the emergency partial withdrawal is subject to some terms and conditions. Make sure to conduct a PF balance check regularly. All in all, a PF can serve as a safety net for people in times of unexpected financial crisis or emergency.

#Tip4: Repay Home Loan With PF

If the date of repaying the home loan is approaching but finances remain short, a PF account can be a great help. As per the EPFO rules, PF account holders can withdraw up to 90% of the PF balance for buying a new home, constructing a home or repaying home loan payments. Each account holder can easily do a PF balance check to know how much amount they can withdraw. Another good news is that a PF account can be used to buy new land as well.

#Tip5: Enjoy a Steady Pension After Retirement

The best part about a provident fund account is that the account holder becomes eligible for a pension even after turning 58 years old. However, as per the eligibility criteria, the individual must have contributed monthly to their PF account for 15 years.


Provident fund is one of the best retirement-oriented investment schemes out there. The PF amount serves as a significant portion of an individual’s assets which can help them in expanding their life after retirement. Invest in PF to grow savings for a brighter tomorrow. Additionally, all PF account holders should make use of the above-mentioned tips to unlock the full potential of their PF account. Don’t forget to run a PF balance check regularly.

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Cover Photo: EPFO

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