Big news for EPFO members. If you are trying to buy a home, then this article is for you. Dreaming of buying a new home has become easier now. Actually, now the PF Fund will also help you in fulfilling this dream. Actually, if you are going to buy a new house, then you can withdraw from the Provident Fund (PF) for this work. However, you can only remove some part of it.
We will tell you how you can withdraw from the PF fund and what the EPFO rule is regarding it.
Know about the rules
According to EPFO rules, PF holders can make partial withdrawals to buy a house, build a house, or for repair work. However, for this, they have to meet certain conditions.
1. Partial withdrawals can only be made by PF holders who have been contributing to EPFO for at least 5 years.
2. To buy a house, you can withdraw 24 times your monthly salary and dearness allowance from the PF fund.
3. You can withdraw as much as 12 times the monthly salary for home repair.
How to apply
You can request a partial withdrawal from PF both online and offline. In the application, you will have to attach documents related to buying or constructing a house. You can apply online by visiting the EPFO portal and Umang App. For this, you will also have to fill out Form 31.
Advantages of partial withdrawal
Partial withdrawal from PF is completely interest-free. This means that you do not need to take any extra loan in it. In partial withdrawal, you use only the amount deposited by you. Apart from this, if you take a loan from the bank, then you need a security or guarantor. There is no need for this at the time of partial withdrawal from the PF fund.
Keep these things in mind
Your PF balance will be reduced after partial withdrawal. For partial withdrawal, you have to follow the terms and conditions of EPFO. Let us tell you that once you have withdrawn, you will not be able to withdraw for this work for 5 years.
