EPF for Home Loan? Think Twice Before You Pay Off Debt

• Salaried individuals often consider using EPF to clear home loans, aiming for debt-free status.
• EPF offers a tax-free 8.25% interest, while home loans average 7-7.5%, but EPF's tax-free nature makes its effective return higher.
• EPF is a long-term, secure, tax-free retirement capital, built through disciplined savings.
• Home loans are decreasing liabilities with potential tax benefits (under old regime), and salaries typically increase over time.
• Withdrawing EPF for a ₹20 lakh loan saves ₹9 lakh interest but depletes a ₹44 lakh tax-free retirement corpus over 10 years.

Why It Matters: Prioritize EPF's tax-free growth for retirement over early home loan repayment, unless near retirement.