Subscribers can now withdraw 90% of EPF for buying a house

Employees’ Provident Fund (EPF) has relaxed its withdrawal norms further to enable its subscribers to use 90 per cent of their EPF funds for purchasing a house or buying a land.

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.

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the NBFCs and Insurance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.