EPF Withdraw for Home – Procedure to Withdraw 90% of Your PF to Buy Home

The EPF India given the chance to EPF Withdraw for Home, Procedure to Withdraw 90% of Your PF to Buy Home Step by step process to withdraw 90% of your PF Amount to buy home…. 
The subscribers of the Employees Provident Fund Organization (EPFO) will be able to EPF 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 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 installments 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.

EPF Withdraw for Home – Can the money be used to buy resale flats or in secondary market?
Unfortunately, no, EPFO will only make payments directly to a co¬operative society, the state government, central government, or any housing agency under any housing scheme, or any promoter or builder, in one or more installments. The rule will not apply to real estate purchases in the secondary market or resale transactions.

EPF Withdraw for Home – How much lump sum can be withdrawn
With respect to tax benefits on the home loan availed, you can claim deduction towards interest payable against the loan under section 24 of the Income-tax Act. The quantum of deduction would depend upon whether the loan has been availed for a self-occupied property or a let-out property. Further, you can claim deduction towards the principal repayment of a home loan under section 80C subject to the overall limit of Rs.1.5 lakh per financial year.

EPF Withdraw for Home – Making EMI payment through PF
With the provision that the amount from the EPF corpus will be debited and credited to the home loan amount, the banks may consider you for higher loan eligibility. For this purpose, banks may ask you to furnish your EPF balance and monthly contributions to them. For this, you can seek certificate from EPF (Refer to Gazette Notification in the Additional Read section for the forms). Alternatively, members can take printout of their passbook from website for submission to lenders. You can give an instruction to EPFO to pay a fixed amount every month to your loan account. You have to fill up a form and get it attested by manager of the bank branch where you took the loan and submit to EPFO.

EPF Withdraw for Home – How to apply

  • Member can apply individually / jointly through housing society in the prescribed format to the Commissioner
  • Commissioner to issue certificate specifying balance in provident fund accounts along with monthly contribution during last 3 months
  • Alternatively, PF members can get print out of their epassbooks from EPFO website
  • Payment directly to agency
  • EPFO – Not to recommend or associate in the agreement with any builder / promoter / housing agency / society
  • EPFO to assist members not having repayment capacity
  • In addition to lump sum withdrawal, members can opt full / part repayment of loans out of monthly PF contributions
  • Provision of Equated Monthly Installments (EMI) facility for repayment of loans to EPF
  • Letter of authorization cum undertaking to be given by member for EMI payment out of PF contributions
  • Facility of Pradhan Mantri Awas Yojna (PMAY)
  • For members whose annual income is less than amount specified in PMAY and do not own house in the name of any family member anywhere IN INDIA

Existing rules for house purchase
You should have completed three years of service.

  • You can withdraw up to 90% of the accumulated corpus for purchase of house or house site.
  • You can avail this partial withdrawal facility only once in your life for housing purposes.
  • If you want to withdraw from EPF for repayment of housing loan, you must have completed 10 years of service. The maximum withdrawal amount is capped at lower of a) 36 months of basic salary & Dearness Allowance (DA) and b) Outstanding loan amount.
  • There are many sub-conditions for EPF withdrawals for house purchase and repayment of home loan, which is not possible to cover in a single post. Please refer to Additional Read section or the EPF scheme for greater details.

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