The government is going to help you itself to buy a house. Yes, the government will help you under the scheme PF run by the Central Government. EPFO has changed the rules for withdrawing money from PF, under which up to 90% of total deposits for EMI to buy a house can be extracted up to 90% of the total deposit.
Under the Para 68-BD of EPF Scheme, 1952, now EPFO subscribers can extract up to 90% funds on completion of 3 years of their PF account. This amount can be used to buy a house, build or repay EMI. Earlier this facility was available only after 5 years, and the withdrawal of 36 months of the withdrawal of the withdrawal and interest on it was based on the interest. In the old rules, the members enrolled in a housing scheme were not allowed to withdraw funds.
What are the major changes?
Immediate withdrawal facility- From June 2025, EPFO members will be able to withdraw up to Rs 1 lakh in Emergency through UPI and ATM.
Auto settlement limit increased- The limit of claim settlement has been increased from 1 lakh to 5 lakh rupees.
Easy claim process- Earlier, claims were examined on 27 parameters, now there will be a document verification at only 18 points. In 95% of cases, claim is being set in 3-4 days.
Increased liquidity- The process of PF withdrawal for necessary expenses has been simplified, which will give the employees financial flexibility.
Purpose of change
The aim of these new rules is EPFO members to provide ease of purchasing homes, reducing the challenges of down payment, activating passive savings and making rules more flexible. However, this withdrawal facility will be available only once in life. Apart from this, many other important changes have also been made to simplify PF withdrawal.