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This Week’s Top Stories About Loan Against NPS | NPS Partial Withdrawal 2022

Loan against NPS | NPS Loan Form | Withdrawal Online and Offline | nps loan | loan facility on nps | loan on nps

Introduction

Central Government of India introduced National Pension System for Central Government Employees joining services w.e.f Jan 2004.
In May 2009, on a voluntary basis, the NPS scheme was made available for all citizens.
NPS aims at creating enough corpus, to permit subscribers for purchasing Annuity post-retirement.
This account can be operated from anywhere irrespective of employment and geography.
NPS is liquid and allows for early withdrawal.
At present, there is no guideline on Loan Against NPS. but NPS subscribers may get home loans at the lowest interest rates.
The PFRDA (Pension fund regulatory and development authority) has set up a committee to look into the proposal.

National Pension System: A Complete Guide for Retirement Plan

Top Stories About Loan Against NPS

Two very important retirement assets are Pensions and Housing. NPS’s loan committee members are from the SBI, PNB Housing Finance, HDFC Ltd, and authorized bank.

The committee will examine the eligibility, need for offering and facilitating funding for homeownership for the NPS subscribers,
including direct lending, with special reference to government employees.
The panel will also examine in detail the advantage and disadvantages of such a scheme and its implications for the NPS,
with particular reference to the impact on pension wealth and the retirement pension amount.

PFRDA Statement About Loan Against NPS

We are exploring housing options for NPS subscribers and we have set up a committee to study the proposal.

We are looking at possibility of extending housing loans at affordable terms to NPS subscribers.
This will be a win-win for all stakeholders and a big support to the NPS members, apart from giving fillip to the government’s vision of housing for all.

Pension Fund Regulatory and Development Authority (PFRDA) Source – Economic Times

NPS Partial Withdrawal Rules

NPS subscriber on completion of three years in NPS is permitted to partially withdraw from his/her account,
subject to a maximum of 25% of the contributions made by the subscriber for the below purposes.

  • Higher education of children.
  • Marriage of children.
  • For the purchase or construction of house or flat in his/her own name.
    OR
    In a joint name with his/her legally wedded spouse.
  • In a condition, the Subscriber already owns either individually or in the joint name a residential house or flat.
    Other than ancestral property, no Withdrawal under these regulations shall be permitted.
  • Treatment of specified illnesses only.
    Suffered by NPS Subscriber, his legally wedded spouse, children including a legally adopted child and dependent parents.
  • Treatment of specified illnesses List
  1. Stroke
  2. Multiple Sclerosis
  3. Cancer
  4. Kidney Failure (End Stage Renal Failure)
  5. Heart Valve Surgery
  6. Primary Pulmonary Arterial Hypertension
  7. Aorta Graft Surgery
  8. Major Organ Transplant
  9. Coronary Artery Bypass Graft
  10. Paralysis
  11. Coma
  12. Total blindness
  13. Myocardial Infarction
  14. Accident of serious or life-threatening nature

NPS Withdrawal Rules

NPS Partial Withdrawal Online

The steps for withdrawal online from an NPS Tier 1 account are mentioned below.

  • Visit the NSDL-CRA official website.
  • Enter user ID (PRAN) and password to log in.
  • Under the “Transact Online” tab, select the “Withdrawal” option.
  • Select the “Partial withdrawal from Tier-I”.
  • Confirm your PRAN and click “Submit”.
  • Enter the percentage of funds to be withdrawn along with the reason for partial withdrawal.
  • Click “Submit”.
  • A form will be generated which subscribers have to submit to the nodal office along with the below documents
  • Original PRAN card.
  • KYC documents.
  • Advance stamp receipt filled and cross-signed on the revenue stamp by the NPS account holder.
  • Bank letterhead, bank passbook, or a canceled cheque that contains the account holder’s name, bank account number, and bank IFSC code.

NPS Partial Withdrawal Offline

NPS subscribers have to download the below forms for withdrawal (partial withdrawal, exit, or retirement), fill in with relevant details, and attach them with the mandatory documents mentioned above.
They have to submit these forms at the nearest Point of Presence Service Provider (PoP/PoP- SP) or courier to NPS head office.

The bottom Line for Loan Against NPS

The government may introduce of Loan against NPS on the next budget.
For any emergency, subscribers can use the Partial Withdrawal.

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