PF Withdrawal for Home Loans – EPF members can utilize the fund accumulated in their EPF account to facilitate their housing needs after three years of account opening. As per the newly added Para 68-BD in the EPF Scheme, 1952, EPF members can apply for a withdrawal of up to 90% of the accumulated corpus for either making the down payment of the house or for the payment of EMIs or for the construction of a new house.

Earlier, the maximum withdrawal amount was limited to the total contribution of the employee and the employer with the interest of 36 months or the cost of the property, whichever was less. The member was also not required to be a member of the housing scheme to avail this facility. He just had to be a member of the EPF for five years.

After the insertion of Para 68-BD in the EPF Scheme, 1952, the members got more options to utilize their funds. The time limit (from account opening) has also been reduced to 3 years, The minimum PF balance of the member should be more than ₹ 20,000 either individually or including that of the spouse in case he/she is also a member of the EPFO.

• The applicant should be a member of a registered housing society having at least 10 members
• The bank can use the Commissioner’s certificate of PF contributions to calculate EMIs for withdrawal
• Composite claim forms can be used to avail this facility
• The member has to provide the letter of authorization for paying EMI from PF
• The facility can be clubbed with Pradhan Mantri Awas Yojana (PMAY) to avail subsidy on housing

Can I withdraw PPF for construction of a house?

PF withdrawal for construction of house – Those who have completed five years as a member of the EPFO, are eligible to part-withdraw their PPF money to construct their homes. To be able to withdraw the money, the house should be registered either in the name of the member or his/her spouse.

How much PF should I withdraw to buy a house?

PF withdrawal for repayment of housing loan – The provident fund scheme allows you to avail of the withdrawal facility, for repayment of the outstanding balance of a taken by you or your spouse, for any of the above purposes. The amount cannot exceed 36 months’ basic salary and DA.

This withdrawal can only be made for repayment of the home loan taken either by the members and/or by the spouse, from specified entities like governments and state governments, registered cooperative societies, state housing board, nationalised banks, public financial institutions, municipal corporations, or any development authority, for purchase of a house.

This facility can be taken, after you have completed at least 10 years of contribution to the EPF account.

What is the maximum amount I can withdraw from PF?

How to get advance PF Amount Withdrawal / PF money from your EPF Account – An employee can withdraw the PF amount during his service period for medical expenses, marriage or for purchase of house and other such cases. An employee will be allowed to amount of 90% if he decides to withdraw the advance amount from PF account before one year of retirement.

• PF Amount Withdrawal Education: One can withdraw amount for his / her daughter or son’s higher education.
• You are permitted to a withdrawal amount of 50% of his share along with interest.
• You are allowed to make withdrawals up to 3 times under these criteria.
• Purchase/ Construction of House: One can make advance withdrawal of money from their PF account for the purchase or construction of house or flat.

One can withdraw up to 3 years of the basic pay and dearness allowance or may be the total of the employee and the employer contributions along with interest amount. The only condition under this is that the house is to be owned by the employee or the spouse of the employee.

• Marriage: Here are the one more criteria that you can withdraw advance money from PF account.
• All you need to be required to avail the amount under marriage criteria is that you should have been in to service period for a minimum period of 7 years.
• An employee can withdraw up to 50% of his PF amount from his EPF account.

You can make up to 3 withdrawals from these criteria. Retirement: An employee can withdraw up to 90% of the PF amount, after attaining the age of 54 or one year before the age of superannuation whichever is later. Illness: One can withdraw the advance amount from their PF account for their medical issues.

They can also withdraw for their spouse illness, children or also parents. An employee can withdraw up to an amount of 6 months of his basic pay along with dearness allowance or his entire money whichever is lower. One of the advantages of this is that there is no limit on the service period to withdraw amount for illness cause.

Unemployment: An employee is allowed to withdraw an amount of up to 75% of the PF amount in case of loss of job or candidate suffering unemployment. This article is useful to EPF holders for how much amount can withdraw their PF account for various purposes.

What is the maximum amount I can withdraw for home improvements?

PF withdrawal for home renovation – You are also entitled to withdraw money from your provident fund account, for making additions or improvements to a residential house that is already owned by you, or your wife, or jointly by both. This withdrawal can only be availed of, after five years from completion of construction of the house.

It is not necessary that the house for which you want to carry out the improvements should be the same for which you had availed of the withdrawal facility. This withdrawal for improvement of your house can be availed, even if you have not availed of the withdrawal facility for purchase or construction of this house.

The amount that you are eligible to withdraw, for improvement or addition to the existing house, is restricted to 12 months’ basic salary and DA, subject to the cost of such improvement. You can also avail of the withdrawal facility again, only after 10 years from the first withdrawal for addition/improvement of the existing house, subject to the same eligibility criteria, vis-à-vis the amount.