Purpose | Eligibility | Limit |
Purchase/ Construction of New Home | The Employee must have served minimum of 5 years | 90 percent of the PF Balance |
Constructing a home is a dream of many because staying in one’s own home is a great feeling. Since over 70% of people contribute to the working population of our country, the central government offers several schemes to make it easier for people to purchase a home. One such measure is the PF (Provident Fund) scheme. Salaried people can use the PF balance to buy a home. However, there are some withdrawal documents and construction of house EPF withdrawal limit that you need to know about.
Avail NoBroker’s Home Loan Services if You Want to Buy Your Dream Home
Since Surbhij and Renu have already told you about the documents required for PF withdrawal for purchase of land and construction of the home, I will tell you about the withdrawal limit.
If you are an EPF member, then you can use the fund accumulated in your EPF account to facilitate your housing requirements after 3 years of opening the account. You can apply for a withdrawal of up to 90 percent of the accumulated corpus for either the construction of a new home, for the payment of EMIs, or for making the down payment of the home.
Earlier, the max. withdrawal amount was limited to the total contribution of the employer and the employee with the interest of thirty-six months or the property cost, whichever was less. The member wasn’t needed to be a member of the housing scheme for availing this facility. They just had to be an EPF member for 5 years.
Now, the members have more options to use their funds. The time limit (from account opening) has also been reduced to three years. The member’s minimum PF balance needs to be more than Rs. 20000 either individually or including that of the spouse in case she/he is also the EPFO member. However, a member can withdraw the PF balance only once in a lifetime for paying for the home.
As mentioned above, you can refer to the answers of Surbhij and Renu to know about the PF withdrawal for home purchase documents required.
Read more:
How to withdraw PF for home loan repayment?
How to withdraw PF for House Construction?
Is It good to withdraw PF for home loan?
How to withdraw PF for home purchase?
This is all about the construction of house EPF withdrawal limit.
We all are well aware that a down payment and other lump sum payments are necessary for the purchase of a home. Even though you depend on provident funds (PF) for your retirement, you sometimes are unaware of the requirements to use PF to purchase a home. So let me first tell you about the documents required for PF withdrawal for house purchase.
Check your eligibility to get a home loan from NoBroker at very effective interest rates. Know how much EMI you will have to pay for home loan with NoBroker EMI Calculator.You should make a PF withdrawal request to the relevant EPFO office in order to start the withdrawal process. You should also provide the above-mentioned supporting documentation with the PF withdrawal application. It is necessary to use a new declaration form or utilisation certificate PF claim for house construction.
It might be acceptable to withdraw PF funds in order to buy a home, but experts advise against it. It is recommended to use this fund solely for its primary objective, which is to give some security during retirement. Because it will benefit you during your working years if you continue to add funds to this sum and do not take any from it during the gap. As a result, you will have a sizable capital that may be difficult for many salaried people to build.
This is all from my end about the documents required for PF withdrawal for house purchase.
Read More: How to withdraw PF for house construction? How much PF can be withdrawn for house construction?Last year, I withdrew some amount from my PF for the construction of my new house. There are some rules for PF withdrawal in case of house renovation, construction, and purchase. To initiate PF withdrawal, the employee must submit the PF withdrawal application at the concerned EPFO office. Along with the PF withdrawal application, the PF withdrawal for construction of house documents required must also be submitted by the employee. Let me share the details with you all;
The employee is permitted to take money out of his EPF account for renovation and construction.
The property must be held either in his or her name or jointly with the spouse.
The employee must have at least five years of experience.
The member can withdraw 12 times his monthly salary from his provident fund account
In addition to the withdrawal form 15g for PF withdrawal, the employee must include a new Declaration Form/Utilisation Certificate
A PF member may take a partial withdrawal from his employee provident fund in order to buy and/or build a plot of land.
The property must be held jointly with his or her spouse or in their name when it is registered.
A minimum of five years of continuous service is required for an employee.
You can withdraw up to 24 times your monthly payment for buying a plot, 36 times your monthly salary for buying or building a house, the cost of the property, the sum of your employer's and employee's shares, plus the interest amount, whichever is smaller.
Withdrawal is permitted only after five years of service are completed.
An updated Declaration Form/Utilisation Certificate must be submitted by the employee along with the withdrawal form 15g for PF withdrawal.
After understanding the PF withdrawal for construction of house documents required, along with the documents required for house renovation, and purchase. I’d like to say that before the money is taken out of your EPF account and transferred to your bank account, your employer must approve your withdrawal request.
Get home loans without hefty paperwork through NoBroker
Read More:
How to withdraw PF for house construction? How to check the APF number online? How to withdraw pension contributions in EPF?
What are the documents required for PF withdrawal for house construction?
Manohar
✔In Progress
👁16936
Views
July 26, 2021
2021-07-26T17:09:26+00:00 2023-06-26T16:19:23+00:00Comment
5
Answers
Banking
Share