There is plenty of good news for those planning to purchase a home. The Government is in the process of amending the EPF scheme following which 90 per cent of the fund can be withdrawn to make down payments while buying homes. This was announced in the Parliament.
The amendment in the scheme will allow the Employees's Provident Fund Organisation subscribers to use their EPF accounts for paying EMIs for their home loans. The EPFO will have to form a cooperative society with at least 10 members to avail the facility.
"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 in a written reply to Rajya Sabha on a question about Housing Scheme for the members of EPFO.
The new provision provides that "a member of Employees' Provident Fund being a member of a co-operative society or a housing society having at least 10 members of EPF, can withdraw upto 90 per cent from the fund for purchase of dwelling house/flat or construction of dwelling house/acquisition of site.
It also provides for monthly instalments for repayments of any outstanding payments or interest may also be paid from the amount standing to the credit of the member, to the Government/housing agency/primary lending agency or banks concerned.
The withdrawal facility from the Provident Fund (PF) account under the Scheme will be available to only those PF members who fulfill the above conditions.