PF withdrawal: EPFO gives big relief to home buyers, you can withdraw this much money to buy a house..

New PF Withdrawal Rules: The government has recently changed the rules related to EPF (Employees' Provident Fund). This will especially provide relief to those employed people who are going to buy a house for the first time, but it has become difficult for them to arrange for the down payment.

Now, employees can withdraw money from their PF account for down payment, which will make the process of buying a house easier than before. Experts believe that this change will boost the demand in the housing sector.

New PF withdrawal rules for home buyers

Now, those employees who deposit money in EPF can use their funds to buy a house, provided their account has been opened for 3 years. A new rule (Para 68-BD) has been added to the EPF Scheme 1952, under which EPFO members can withdraw up to 90% of the total money deposited in their account. This money can be used to pay a down payment, EMI, or to build a new house.

What was the rule earlier?

According to the earlier rules, you could withdraw money from PF only if you were an EPFO member for at least 5 years. The calculation of the maximum withdrawal limit was based on the total contribution of the employee and the company for 36 months, along with the interest amount or the cost of the property, whichever is less. Also, if a member was a part of any housing scheme, he could not withdraw money from the PF.

What changed with the new rule?

Now, money can be withdrawn from PF only after 3 years. But this facility is given only once, that is, you can withdraw money from PF only once to buy a house.

Other major changes related to PF withdrawal

EPFO has made many other important changes, not only for buying a house:

Instant withdrawal from UPI and ATM

EPFO will now provide such a facility through which members can withdraw up to ₹ 1 lakh instantly through UPI or ATM. This will help in getting instant cash in an emergency.

Auto settlement limit increased.

Earlier, claims up to ₹1 lakh were processed automatically; now this limit has been increased to ₹5 lakh, which has made the process faster and easier than before.

The claim process has been made easier.

Earlier, 27 document verifications were required to withdraw PF, but now only 18 parameters will be checked. In 95% of the cases, the claim is being settled in 3 to 4 days.

Withdrawing money from the PF for these things also became easier.

Now, the process of withdrawing money from PF for important expenses like marriage, treatment and education has also become easier and faster.

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