You can withdraw 90% EPF to buy home, pay EMI from account
The withdrawal facility from the PF account will be available to only those PF members who fulfil the conditions prescribed.
Over four crore subscribers of the retirement fund body EPFO can now make down payment and pay EMIs from their EPF accounts to buy homes.
The subscribers of the the Employees Provident Fund Organisation (EPFO) will be able to withdraw up to 90 per cent of their accumulations in their PF account for purchase of homes.
The EPFO has amended the scheme by inserting a new paragraph -- 68 BD -- to the Employees' Provident Funds (EPF) Scheme, 1952, to enable a subscriber to make down payment to buy homes and pay EMIs through the EPF account, a senior official said.
ALSO READ: EPFO Passbook: How to check your balance
The official said, "Since the labour ministry has issued a notification for the purpose, the scheme stands amended."
Under the new provision, an EPF subscriber being a member of a co-operative or housing society with at least 10 members can withdraw up to 90 per cent from the fund for purchase of a dwelling house or flat or construction of a dwelling house and acquisition of site.
It also provides that monthly instalments for repayments of any outstanding payment or interest may also be paid from the amount to the government, housing agency, primary lending agency and banks concerned.
ALSO READ: At 8.65%, investing in EPF a better option than fixed deposits
However, the withdrawal facility from the PF account will be available to only those PF members who fulfil the conditions prescribed. One, the member applying under this window should have contributed to the fund for at least three years.
The facility will be available only once to every member during his or her lifetime. The rule applies to all those who together with their subscriber spouse have at least Rs 20,000 in their accounts.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Senior Citizen Latest FD Rates: Know what major banks like SBI, PNB, Canara Bank, HDFC Bank, ICICI Bank are providing on fixed deposits
Gratuity Calculator: Rs 38,000 as last-drawn basic salary, 5 years and 5 months of service; what will be gratuity amount?
Retirement Planning: In how many years your Rs 25K monthly SIP investment will grow to Rs 8.8 cr | See calculations
Top 5 Small Cap Mutual Funds with best SIP returns in 1 year: See how Rs 25,000 monthly investment has grown in each scheme
Top 7 SBI Mutual Funds With Best SIP Returns in 1 Year: Rs 25,000 monthly SIP investment in No.1 fund has jumped to Rs 3,58,404
SBI 5-Year FD vs MIS: Which can offer higher returns on a Rs 2,00,000 investment over 5 years? See calculations
08:40 PM IST