PF Withdrawal Rules for House Construction: Your dream of building your own home can now come true from your PF funds. Under the new EPFO rules, employees can withdraw up to 90% of their PF balance for home purchase or construction. Learn the conditions under which this money can be credited to your account and how quickly this money can be credited to your account.
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PF Withdrawal Rules for House Construction: Every employed person dreams of owning their own home. Your Provident Fund (PF) can prove to be a great help in fulfilling this dream. EPFO offers its subscribers the special facility to withdraw a large portion of their funds before retirement to purchase a house, acquire land, or renovate a house.
What is required for withdrawal?
- Withdrawing money from your PF account for a home isn’t a one-click process; it requires adherence to certain rules. First, the property you’re claiming must be owned by you or your spouse.
- A minimum membership period of 5 years is required for building or purchasing a home. If you want to repay a home loan, this period must be 10 years.
- Your UAN must be linked to your Aadhaar and bank account (KYC) on the portal so that the money can be credited directly to your account without any hassle.
How much can you withdraw?
The EPFO has established a strict but convenient withdrawal framework. You can withdraw the following amounts based on your needs:
- You can withdraw up to 90% of your PF funds or your 36 months’ basic salary + DA (whichever is lower).
- If you want to reduce the burden of an existing home loan, you are also allowed to withdraw up to 90% of the balance.
- To renovate your old house, you can withdraw an amount equal to 12 months’ basic salary.
EPFO 3.0: No more waiting for weeks
Technological changes have made the PF claim process super fast. Under the EPFO’s new system, if your documents are in order, the funds are transferred to your bank account within 72 hours (3 working days) of submitting your online application. This facility is a boon for those who need immediate funds for home registration or construction work.
