Record PF Loan Definition - A summary of the activity

Through this activity, you can define a Provident Fund (PF) loan.

Defining PF loan: You can specify the following details:

• The name of the loan to be defined. Example "House Building" loan

• The number of times a specific loan can be availed.

• The type of loan; whether withdrawal loan or refundable loan.

• The rate of interest that the employee must pay, above the PF interest rate, for repayment of the PF loan.

•  The PF trust from which you can disburse the amount.

•  Any remarks pertaining to the PF loan definition.

Deleting the PF definition: You can delete the PF loan that is not required.

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Prerequisites

None

What you can do in this activity

Recording PF loan definition

Types of Loan

4      Withdrawal PF Loan: Withdrawal PF loan reduces the PF balance when the amount is disbursed to the employee. This amount need not be returned to the employee’s PF account. The employee can avail another loan after the repayment of the entire withdrawal, amount along with the interest. You have the provision to repay the entire PF loan within one installment. Both the non- managerial staff and managers can avail the withdrawal loan.

4      Refundable PF Loan: Refundable PF loan does not affect the PF balance and the amount must be returned after a specific period. The amount is recovered according to the loan recovery rule. This facility of refundable PF loan is applicable only for managers. The Retirement date is not checked for sanctioning refundable PF loan to managers.