PF withdrawal for Property Purchase: If you are thinking of buying a new house and are worried about the funds, then Provident Fund (PF) can be useful for you. PF account holders are given the facility to withdraw a 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Let us understand what conditions are necessary to be followed for withdrawing money from PF and how much money can be withdrawn.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, it is necessary that you have completed at least 5 years as a member of EPFO.
- If you are buying a plot or a house, you can withdraw 24 times your monthly salary
- (including DA) or the total amount deposited in the account, whichever is less.
- This limit for building or buying a house can be up to 36 times the monthly salary.
- Up to 12 times the monthly salary can be withdrawn for house repairs.
Who can avail 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, constructing a house or repairing it.
How to apply for withdrawal of money from PF?
To withdraw money from EPF, you have to apply online. You can fill Form-31 through EPFO’s official website or UMANG app. At the time of application, you will have to provide proof of purchase or construction of property, such as agreement copy or documents related to the builder.
