PF Withdrawal Rules 2024: Can you withdraw money from PF to buy a new house? Know the rules..

PF withdrawal for Property Purchase: If you are thinking of buying a new house and are worried about the fund, then Provident Fund (PF) can be useful for you. PF account holders are given the facility to withdraw part of the amount deposited in their account. This is especially helpful for those who are planning to buy their dream house. Let us understand what conditions are necessary to be followed to withdraw money from PF and how much money can be withdrawn.

Rules for withdrawing money from PF to buy a house

Under the rules of EPFO, PF account holders can make partial withdrawals to buy a house, build a house, or repair it. But some conditions have been fixed for this.

To withdraw money from PF, you must complete at least 5 years as a member of EPFO.

If you are buying a plot or house, you can withdraw 24 times your monthly salary (including DA) or the total amount deposited in the account, whichever is less.

This limit can be up to 36 times the monthly salary for building or buying a house.

Up to 12 times the monthly salary can be withdrawn for house repairs.

Who can avail of this facility?

If you are doing a government or private job and have been contributing to the EPF account for 5 consecutive years, then you can avail this facility. Keep in mind that this withdrawal is completely purpose-based, like buying a house, building a house, or repairing it.

How to apply to withdraw money from PF?

To withdraw money from EPF, you have to apply online. You can fill out Form-31 through the official website of EPFO ​​​​or the UMANG app. At the time of application, you will have to provide proof of buying or constructing the property, such as an agreement copy or documents related to the builder.

Benefits of withdrawing money from PF

The money withdrawn from PF is interest-free, so you do not need to take an additional loan.
This facility allows you to use your own deposited money properly.

Unlike a bank loan, a PF withdrawal does not require any guarantor or security.

Keep these things in mind for PF withdrawal.

After withdrawal, your PF balance will decrease, which may affect the amount received at the time of retirement.

It is important to follow the conditions set by EPFO, otherwise your application may be rejected.

If you fulfill these conditions, then you can fulfill your dream of a house by withdrawing money from PF.

This is a simple and safe method, which gives relief from the problem of finance.