For medical purposes: Medical contingency of yourself or a dependent family member is another legitimate reason for an EPF withdrawal. In times like these, when money is tight for everyone, getting help from friends and family may not be secure.
In case of a job loss: If you have suffered a job loss, it’s going to be very difficult because another job might not be easy to come by in these conditions. Archit Gupta, Founder and CEO — Cleartax says: “In such situations, EPF advance will help them in meeting their expenses. For those who are going through a pay cut, the initial attempt should be to decrease expenses rather than use this money.”
Of course, there would be many other reasons why you might need liquidity. However, some of them need to be managed by being more frugal. For example: While governments have asked landlords to be considerate about rent for the next three months, some landlords might need it for their own sustenance. In these times, try to adjust the rent against the deposit amount. This might help one tide over for a couple of months.
One can look for cheaper accommodation after that. And if you are lucky, there could be plenty available. Of course, there are other options out there.
While experts have recommended avoiding taking an EMI moratorium, it should be considered in an extreme situation. Gold loan or any secured loan is a good alternative. Shop around for a secured loan which charges an interest lower or on a par with EPF rate of interest.
“EPF delivers one of the higher returns among all fixed income instruments covered under the sovereign guarantee. The scheme also enjoys tax-free returns as well as tax-free maturity, says Shetty.