I want to partially pay my home loan’s principal amount. Is it right to withdraw from my PF for this?
For part paying your loan, it would be better to use the funds that you have allocated for the short-to-medium term
I want to partially pay my home loan’s principal amount. Is it right to withdraw from my PF for this?
Mallikarjun Pai, Mangalore
While partially paying a home loan principal is a good way of reducing the interest burden of the loan, using funds from the Provident Fund (PF) is not a good idea as these funds are ideally meant to meet your needs during your retirement years. The reason is that in most cases, people withdraw money from their PF accounts but rarely replenish it. As a result, many people fall short of funds during their years in retirement. For part paying your home loan, it would be better to use the funds that you have allocated for the short-to-medium term rather than digging into the PF kitty.