Home funding through EPF account, Home funding through EPF account
Home funding through EPF account. Funding home purchase may soon get easier as the government plans an amendment in EPFO Act. The amendment in the Employee’s Provident Fund Act will enable around 4 crore members of retirement fund body to withdraw up to 90 per cent of their fund. This is for making down payments while buying homes.
Benefits to EPFO Subscribers
Employees’ Provident Fund Organisation (EPFO) subscribers will also be able to use their EPF accounts for paying EMIs of home loans. This is only after the amendment is made. Under the new proposed provision in the EPF scheme, EPFO subscribers would have to form a cooperative society with at least 10 members.
“The Government has taken a decision for modification in the Employees Provident Funds (EPF) Scheme, 1952, to add a new paragraph 68 BD,” Labour Minister Bandaru Dattatreya said.
The new provision provides that – “a member of EPF being a member of a co-operative society or a housing society having at least 10 members of EPF. They can withdraw upto 90 per cent from the fund for purchase of house/flat or construction of house/acquisition of site.”
The total number of EPF member accounts as on March, 31, 2016 is 17.14 crore. On an average, contributions have been received in respect of 3.76 crore members during the year 2015-16. Hence home funding through your EPF account is now easier.