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Q.

I have personal loan 2.5 Lakhs, for 5 yrs, and i have so far paid for 18 months, could you please advise if i can repay my loan using my PF money.

About: Should you prepay that costly personal loan?

Asked by srinivas, 19 Dec '12 09:54 pm
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Answers (5)

1.

If it is PF from previous companies you can definitely encash it..but ur current companies PF I don;t think so it is possible,,You can try BankBazaar Personal Loan EMI calculator to check your Monthly EMI
Source: http://www.bankbazaar.com/personal-loan-emi-calculator.html
Answered by Vikram Krishna, 26 Sep 12:46 pm

 
  
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2.

Yes u can
Answered by iqbal seth, 20 Dec '12 07:12 am

 
  
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3.

I think repaying your loan by withdrawing from your PF will be a better option as it will benefit you in the long run. Thus instead of paying interest for for three and half years more, you can repay your loan in lump sum and become free of that and on the monthly subscription of your PF you will keep on earning interest which will be more than you would have paid otherwise.
Answered by Manoj Adwani, 19 Dec '12 10:08 pm

 
  
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4.

If you mean by withdrawing from your PF accumulation - check if the PF withdrawal is allowed on a non refundable basis or on refundable basis. If on refundable basis, check the rate of interest charged on the repayment towards PF Loan. Ascertain the rate difference. Based on this you take a call so that you really benefit.

PF withdrawals on non-refundable basis are available only for specific purposes. Check this too.
Answered by S. Ramesh, 19 Dec '12 09:57 pm

 
  
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5.

Not possible till you have encashed the PF amount after leaving your job - while on job you can't encash PF.

If you have the PF amount - sure you can - contact the bank - pay it with foreclosure charges.

If not - keep paying the EMI'S
Answered by simon waaras, 19 Dec '12 09:57 pm

 
  
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