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  1. Now buy home, pay EMIs from your PF account deposits; 5 things you need to know

Now buy home, pay EMIs from your PF account deposits; 5 things you need to know

The amended provident fund rules enable subscribers to withdraw up to 90 per cent of their accumulations in their PF account for the purchase of home. (

By: | Updated: April 25, 2017 11:00 AM
The amended provident fund rules enable subscribers to withdraw up to 90 per cent of their accumulations in their PF account for the purchase of home. (PTI)

The government has amended the provident fund rules to benefit over 4 crore subscribers of the retirement body Employees Provident Fund Organisation (EPFO). The amended rules will help the subscribers pay their EMIs and make down payment through their EPF account. It enables subscribers to withdraw up to 90 per cent of their accumulations in their PF account for the purchase of homes. The EPFO has amended the scheme by inserting a new paragraph — 68 BD — to the Employees’ Provident Funds (EPF) Scheme, 1952, to enable a subscriber to make down payment to buy homes and pay EMIs through the EPF account.

However, there are preconditions for availing the 90 per cent of PF accumulations. We take a look at them

1. In simple terms, the new provisions says that an EPF subscriber can withdraw fund for purchase of a dwelling house or flat or construction of a dwelling house and acquisition of site only when he goes to access the PF fund with 10 member. Moreover, the subscriber should be a member of a co-operative or housing society.

2. The EPFO will provide monthly installments for repayments of any outstanding payment or interest to the government, housing agency, primary lending agency and banks concerned.

3. Another condition is that the member applying for the withdrawal from PF fund should have contributed to the fund for at least three years.

4. The funds can be withdrawn only once by every member during his or her lifetime.

5. The amendment applies to all those who together with their subscriber spouse have at least Rs 20,000 in their accounts.

ALSO READShould you withdraw 90% from EPF account or take a home loan for buying your dream home?

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