Employee Provident Fund i.e. EPF, which is known as your companion in bad times, can now fulfill your dream of owning a house in a jiffy. Yes, if you are also thinking of buying, building or repairing your own house, then this news is no less than a jackpot for you. Under the new rules, withdrawing money from PF has now become easier than before. Let us know how much benefit you are going to get from this new change.
12 month membership is the biggest passing ticket
If you are thinking that as soon as you get a job, you will withdraw the PF money for your house, then it is not so. According to the new rules, for housing related PF withdrawal, your total EPF membership must be for at least 12 months i.e. one year. As soon as this journey of one year is completed, you become entitled to buy a flat, buy a plot, build a house, repay a home loan or withdraw money for painting and repairing the old house.
How much of the PF balance will you get?
The New Testament is no less than a great gift for you. The withdrawal limit is now linked to your eligible member balance. Under this, you can withdraw up to 100% of your eligible balance, the only condition is that at least 25% of the total balance should be safe in your PF account.
In simple words, you can withdraw up to 75% of your available eligible PF balance, while the remaining 25% will remain safe in the account for your secure old age and retirement.
Which dreams will your PF fulfill?
Your every need has been completely taken care of in this luxurious housing category of EPF. You can feel free to withdraw money for the following purposes:
- Buying any new house, flat or plot of land
- Building a new home of your choice yourself
- Heavy home loan payment looming over the head
- Renovating or renovating an existing home
- Making necessary changes or improvements of any kind in the house
The most interesting thing is that you can avail the facility of this category maximum 5 times during your entire job.
Now not salary, only PF balance will decide your strength
In the old rules, the withdrawal limit was fixed according to the salary, which was quite a headache. But now it is not so at all. In the new structure it is all about your eligible member balance. That means, the stronger the balance in your account, the more money you will be able to withdraw.
For example, suppose you have an eligible PF balance of Rs 10 lakh. In such a situation, after keeping the condition of keeping 25% i.e. Rs 2.5 lakh in the account, you can easily withdraw a huge amount of up to Rs 7.5 lakh. However, the final amount will be decided only on the records and conditions of EPFO.
Your money can get stuck due to these mistakes
Before withdrawing money, definitely check your digital horoscope. Your UAN, KYC, bank account and personal details should be correct and updated. If there is even a slight discrepancy in bank details or KYC failure, your claim may get stuck midway. The government is busy making this entire process superfast, online and automated.
Are both husband and wife PF members? then the benefit will be double
If both you and your spouse have an EPF account and you fulfill both the conditions, then it will be fun. Both husband and wife can make separate withdrawals from their respective PF accounts for the same property for housing expenses. However, the amount of both will be decided according to their personal balance.
conclusion
Overall, the new EPF rules have removed all the obstacles in the way of buying a house. Just complete the one year membership and build the palace of your dreams within the rules. Just remember that 25% of the balance in the account must be kept aside.