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How to obtain a Housing Loan by Reaping Employees Provident Fund Balance

Employee can obtain loan for the following purposes from an approved commercial bank Reaping his Employees Provident Fund balance as security.

  • For construction or completing construction of a house.
  • For purchasing a house or land.
  • For construction of a portion of house or for adding a new portion 
With in a period ranging from one to 3 months from the date of having over of the loan application will be required to release the loan.

Basic Eligibility and Requirements

Approval of housing loans to members who possess provident funds will be granted by the Provident Fund Division.
Loans can be obtained from recognized lending institutions up to the following limits only
  • If the applicant is in service, Up to 75% of his Provident Fund deposits
  • If he is not in service, Up to 50% of his Provident Fund deposits

  • Every applicant should submit his housing loan application in duplicate. Necessary forms may be obtained from the District Labour Office or from the Head Office of the Department of Labour.
  • Handing over of the perfected applications form to the District Labour Office of the respective area. (If there is a difference between the name mentioned in form C and the name given in the loan application, the application will be rejected.)
  • Sending the perfected application to the Provident Fund Division of the Central Bank of Sri Lanka.
  • Issuing the certificate on the balance available in the account to the Labour Office by the Provident Fund Division.
  • After processing of the application advising the financial institution / bank to issue the loan.
  • Repayment of loan to the financial institution in installments as prescribed and on completion of repayment, sending a certificate to that effect by the financial institution to the Labour office.
  • The Department of Labour should Inform the Employees Provident Fund Division of the Central Bank that the respective loan has been settled.

Fees & Penalties

Rs. 25.00 will be charged for the application form.
Investigation and institutional fee up to a maximum of Rs.500.00 will be charged
When the loan applicant does not pay loan installments as prescribed fines imposed by the financial institutions will have to be paid.

Note: If the loan is not repaid property, the loan will be deducted from the Provident Fund Balance together with a penalty is addition the normal interest.

Special Circumstances 

These who not in service at present may apply for 50% of the loan.
The spouse or the spouse and the children jointly may apply for the loan.


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