{"id":12407,"date":"2020-10-22T09:57:00","date_gmt":"2020-10-22T09:57:00","guid":{"rendered":"\/blog\/?p=12407"},"modified":"2023-06-23T09:09:42","modified_gmt":"2023-06-23T09:09:42","slug":"epf-advance-v-s-short-term-personal-loan","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/personal-use-loan\/epf-advance-v-s-short-term-personal-loan\/","title":{"rendered":"EPF Advance v\/s Short-Term Personal Loan"},"content":{"rendered":"\n

The COVID-19 pandemic has caused a lot of financial turmoil in the\ncountry. Amidst this meltdown, the requirement for an emergency source of\nfinancial back up has become extremely important. Therefore, there are two\nimportant options for the common citizens of India: an EPF Advance withdrawal\nor a short term personal loan. The differences between the two are both in\nlogistical as well as fundamental terms. <\/p>\n\n\n\n

What is an EPF Advance withdrawal?<\/strong><\/h2>\n\n\n\n

Following the pandemic and the huge amounts of loss in the job market,\nIndia’s Finance Minister Nirmala Sitaraman had declared an added bonus for your\nEPF Advance withdrawal opportunities. You may withdraw from your account 75% of\nyour savings or a sum of your salary (including the basic amount and any\ndearness allowance you might be enjoying) for three months. The amount which\nwould be lesser among these two options would be the maximum that you can\nwithdraw from your EPF account. <\/p>\n\n\n\n

EPF or the Employee Provident fund is a scheme whereby the employee and\nthe employer deposit a part of their monthly earnings so that the amount can be\ngiven back to the employee upon retirement. This scheme has a fund, and it is\nfrom this fund that the employees can now withdraw, according to the revised\nrules. <\/p>\n\n\n\n

However, there are certain terms and conditions to this withdrawal. As\ncompared to the regular EPF rules applicable to any organisation with more than\ntwenty members, this emergency withdrawal can only be done in organisations\nwith more than one hundred employees. If only less than ten percent of them\nearn more than fifteen thousand rupees a month, only then can it be applied. It\nalso takes a huge toll on your retirement savings, as the interest rates on\nyour EPF are very high and would take a hit if you withdraw a huge\namount. <\/p>\n\n\n\n

\"What<\/figure>\n\n\n\n

What is a short term loan?<\/strong><\/h2>\n\n\n\n

A short term personal loan, on the other hand, is a lot different. It is a scheme where you can take a short term\u00a0loan from any bank, showing your consistent source of income at an amicable interest rate. Compared to buying the necessary items using a credit card, this method is far more economically efficient and sound. This is because the personal loan interest rate<\/a> is much lesser than that of a credit card. Given the fact that you have a stable source of income, you would not face any problem getting such a loan from your bank. What is more, you can use it for any purpose, and you would not owe the bank any kind of explanation. You just have to return the money on time, with the due interest.<\/p>\n\n\n\n

The pandemic has caused a lot of people to lose their jobs, or\nexperience some kind of cuts in their salary. Under these circumstances, a\nshort term personal loan would be one of the best decisions you can possibly\ntake. Not only can you invest it smartly at any economic outlet including the\nshare market, but it would also come with a flexible tenure of repayment,\ndepending upon the bank from which you have availed the loan. Depending on when\nyour financial situation gets strong and the larger plan of your expenditure,\nyou can always choose a short term personal loan from the wide range of them\navailable across platforms.<\/p>\n\n\n\n

Additional Read:<\/strong> How to Check Personal Loan\nOverdraft Eligibility<\/a>?<\/p>\n\n\n\n

Why is a personal loan better?<\/strong><\/h2>\n\n\n\n