More than Rs 10 Lakhs from PF for Housing Scheme, Apply Online
Last year in May, the government announced that EPFO members can use their retirement funds to purchase their own home. And recently the Employees’ Provident Fund Organisation (EPFO) has made it necessary to file claims online for withdrawing provident fund that is more than Rs 10 lakhs. This step has been taken in line with promoting the Centre’s mission of digitisation while becoming a paperless organisation. This implies that those who want to withdraw a huge sum of money (more than Rs 10 lakhs) to purchase a home from their PF account will have to claim it online.
Here are some insights about EPFO housing scheme that was introduced for its subscribers.
The Ministry of Labour & Employment in April 2017 revised the law for the EPFO subscribers allowing the subscribers to withdraw up to 90 percent of their savings in order to buy their own house. In addition, the subscribers can also use their PF savings to pay equated monthly instalments (EMIs). However, those who want to buy a home under this scheme need to form a group of 10 members. Only then the buyers can buy houses from a developer. In order to avail benefit under this scheme, the subscriber must have a minimum of Rs 20,000 accumulated in his or her account and must have contributed for at least three years.
As per the rules, the subscribers cannot use the PF fund to buy a secondary or resale property. The EPFO will make direct payments to the promoter or builder, cooperative society, state or central government or any housing agency eligible under any housing scheme. The payment can make in one go or in parts.
Withdrawing money from EPFO has its own benefits.
• Taking money from EPFO account could be an easy option to arrange down payment rather than taking a long time to save money to arrange for the down payment amount. The subscribers can easily use their saved money (which automatically gets deducted) for the same purpose.
• Instead of deducting the EMI amount from the take home salary, the subscribers can pay their EMIs with the help of their accumulated provident funds.
Hence if you are also planning to buy your own home and thinking of different ways to arrange money then EPFO could be a lucrative option as it is your own money which you can use easily without taking a loan from anyone else. At least you can easily arrange the amount of down payment.