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Central government permission to take 90 percent PF for buying plot/house
Posted on: 23/Apr/2017 12:57:42 PM
Permission has been granted by the central government to withdraw up to 90 percent of the PF amount when the PF subscriber intends to buy a plot or house.
In a press report regarding this approval and rules and regulations for the same, EPF subscribers can withdraw money once in order to buy a plot.house or to pay an installment for the same purpose.
However, if you are planning to buy through a cooperative union, a minimum of 9 additional persons having PF accounts will have to join you. Also, this cooperative society should be legally registered. As per the press release dated 12th April by the central ministry of Employees and employment opportunities.
The Central Minister for Labour, Mr. Bandaru Dattatreya explained that this decision is one of the 1st few steps towards realising the Prime Minister’s dream project of a House for all by 2022.
Around 4 Crores EPF subscribers will benefit by this. They can for a cooperative society themselves and should be able to buy/build their own house from the funds available.
Earlier, EPF subscribers who had completed 5 tears of service, could withdraw an amount equivalent to their 36 months salaries (Basic + DA) from the PF amount.
Now, this has been amended. EPF subscribers who have completed 3 years of service can withdraw up to 90 percent of the PF savings for buying the plot/house. Apart from this, they will also be allowed to utilise their monthly PF payment to pay in full or part as a housing loan instalment.
This circular has been sent to all EPF branch offices. An important feature is that EPFO will pay this amount directly to the relevant cooperative society or the Housing Agency or the concerned builder. The EPF subscriber will not be given any money in this process.
In case the EPF subscribers are not in a position to complete the construction due to any reason, the EPF subscriber will have to confirm paying back the entire 90 percent amount taken as a housing loan from the PF accrued.
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