90% Withdrawal Allowed From EPF Accounts For Home Loan

The Central Government has decided to amend the Employee Provident Fund (EPF) scheme which will allow more than 4 crores members of EPFO to make the by withdrawing 90%down payments for buying houses of their funds.

Moreover, this amendment also gives the provision of using their EPF to even pay the Equated Monthly Installments (EMIs) of the home loans.

Under this scheme, all the subscribers will have to make a group housing cooperative society of at least 10 members in each society if they want to avail the facility. This group housing society would then get collaborated with builders, banks or sellers of homes to make the EPFO members buy homes.

Bandaru Dattatrey, Union Labour Minister, told Rajya Sabha that this provision proposal which has to be inserted in the EPF scheme has not been informed yet. Because of this, targets are not fixed under this benefit for giving advances. According to the annual report, the total number of members of EPF as on 31st march, 2016 were 17.14 crore. During the same year, 3.76 crore members made contributions.

All the conditions prescribed under the scheme will have to be fulfilled by the PF members if they want to avail the withdraw facility from their PF accounts.