It has now become easier to fulfil the dream of buying a new house. Your PF fund can help you achieve this goal. If you’re planning to buy a new house, you can withdraw from your Provident Fund (PF) for this purpose. However, you can only withdraw a part of it.
We will explain how you can withdraw from your PF fund and what the EPFO rules say regarding this.
What Do the Rules Say?
According to EPFO rules, PF holders can make partial withdrawals for buying a house, constructing a house, or for repair work. However, certain conditions must be met:
Eligibility: Only PF holders who have been contributing to EPFO for at least 5 years can apply for partial withdrawal.
Withdrawal Limit:
- To buy a house, you can withdraw up to 24 times your monthly salary and dearness allowance.
- For house repairs, you can withdraw up to 12 times your monthly salary.
How to apply?
You can apply for partial withdrawal from PF both online and offline. The process requires attaching documents related to purchasing or constructing a house. You can apply online via the EPFO portal or the Umang App by filling out Form-31.
Benefits of partial withdrawal
- Partial withdrawal from PF is completely interest-free, meaning you won’t have to take an additional loan.
- You use your savings without needing a guarantor or providing any security, unlike a bank loan.
Important points to remember
- After partial withdrawal, your PF balance will be reduced.
- You must follow EPFO rules and conditions.
- Once you withdraw for this purpose, you cannot withdraw again for similar reasons for the next 5 years.