Avoid withdrawing money from PF if you need money, these 5 methods will get you money at a lower interest and retirement money will also be safe.

Withdrawing Rs 1 lakh, you will get Rs 11.5 lakhs less at the time of retirement.
SBI is giving loans up to Rs 20 lakhs at an annual interest rate of 7.50.

New Delhi. Due to Corona Crisis, people are facing money related problems. People are resorting to their PF fund to deal with this. But doing so without thinking can cause a big loss to your retirement fund. Instead of withdrawing money from PF, you can arrange for money by raising money in other ways. We are telling you how much money will come out of the PF fund and it will hurt your retirement fund. Apart from this, we are giving 5 such measures by which you can raise money for yourself.

Also Read: Top 10 Banks Offering Lower Interest Rates On Personal Loan

How much will your fund impact PF is getting interest at the rate of 8.5 percent. According to an estimated calculation, if you have 30 years left in your retirement and now you withdraw Rs 1 lakh from the PF account, then it will affect your retirement fund by Rs 11.55 lakh. Know here how much money you withdraw will affect the retirement fund.

On withdrawing	How much will you get after 20 years (Rs)	How much will you get after 30 years (Rs)
50 thousand	2 lakh 5 thousand	5 lakh 27 thousand
1 Lac	5 lakh 11 thousand	11 lakh 55 thousand
2 lakhs	10 lakh 22 thousand	23 lakh 11 thousand
3 million	15 lakh 33 thousand	34 lakh 67 thousand

 

Note: This table is given according to a rough estimate as the interest on PF is reviewed every 3 months. Apart from this, in the table given here, the interest was calculated annually.

These 5 ways you can arrange money

Gold loans Most banks, including the country’s largest bank State Bank of India (SBI), have introduced the facility of personal gold loans. Under this, the customer can take a loan by keeping gold. SBI is offering loans up to Rs 20 lakhs at an annual interest rate of 7.50. Apart from SBI, banks including Bank of India, Punjab National Bank and Bank Baroda are also offering gold loans.

You can take a loan on FD if you have a fixed deposit (FD). To get loan on this easily and at low interest rate. There are many banks which are giving loans at less than 6% interest on FD. If you take a loan on FD, then you will have to pay 1-2% more than the interest on fixed deposits. For example, if you are getting 4% interest on your FD, then you can get a loan at 6% interest rate. You can take a loan up to 90% of the value of FD. Suppose your FD is worth 1.5 lakh rupees, then you can get a loan of 1 lakh 35 thousand rupees.

Top-up home loan To meet your money requirement, you can also take a top-up home loan from the bank. This loan provides you money at a low interest rate. If you have taken a home loan, you can easily talk to the bank and get it top-up on that loan. The interest rates of top up loans are slightly higher than home loans but lower than personal loans.

Loans on Credit Cards Financial institutions that issue credit cards give credit to cardholders based on their card type, expense and repayment. Once a cardholder avails this loan, his credit limit will be reduced by that amount. However, some lenders give more than the sanctioned credit limit and loan against the credit card. If you also use a credit card, then you can take a loan on it.

People with Jan Dhan account can avail the facility of overdraft, Jan Dhan Yojana was launched by the Central Government to connect the poor to the bank. Under this scheme many benefits are provided to the poor. Which includes overdraft facility up to Rs 5000. That is, you can withdraw up to Rs 5000 from your Jan Dhan account as and when required. To take advantage of this facility, your Aadhar card is required to be linked to a bank account. The overdraft facility can be availed when there is no money in your account. However, interest is charged on it. To avail this facility you have to go to the bank.

The post Avoid withdrawing money from PF if you need money, these 5 methods will get you money at a lower interest and retirement money will also be safe. appeared first on informalnewz.