In addition to this, the subscribers of Employees’ Provident Fund Organisation (EPFO) will be able to use their monthly Provident Fund contributions in part or full towards repayment of home loans. These modifications will help four crore EPFO members to fulfil their dream of owning a house, reported The Hindu.
The EPFO has amended the scheme by adding a new paragraph(68 BD) to the Employees’ Provident Funds (EPF) Scheme, 1952, to facilitate a subscriber to make down payment to buy homes and pay EMIs through the EPF account.
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.
However, the facility will be available to only those PF members who 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.