Now the government itself is going to help you buy a house. Yes, the government will help you under the scheme PF run by the Central Government. EPFO has changed the rules for withdrawing money from PF, under which now up to 90% of the total deposit can be withdrawn for down payment and EMI to buy a house.
Under Para 68-BD of EPF Scheme, 1952, now EPFO subscribers can withdraw up to 90% of the funds on completion of 3 years of their PF account. This amount can be used to buy a house, construct a house, or pay EMI. Earlier, this facility was available only after 5 years, and the withdrawal was calculated on the basis of 36 months of contribution of the employee and employer, and the interest received on it. In the old rules, members enrolled in any housing scheme were not allowed to withdraw funds.
What are the major changes?
Facility of instant withdrawal - From June 2025, EPFO members will be able to withdraw up to Rs 1 lakh immediately in an emergency through UPI and ATM.
Auto settlement limit increased- The limit of claim settlement has been increased from Rs 1 lakh to Rs 5 lakh.
Easy claim process- Earlier claims were examined on 27 parameters, now document verification will be done on only 18 points. In 95% of the cases, the claim is being settled in 3-4 days.
Increased liquidity- The process of PF withdrawal for essential expenses has been simplified, which will give financial flexibility to the employees.
Purpose of change
The purpose of these new rules is to provide ease of buying a house to EPFO members, reduce the challenges of down payment, activate passive savings, and make the rules more flexible. However, this withdrawal facility will be available only once in a lifetime. Apart from this, many other important changes have also been made to make PF withdrawal simpler.
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