About 40 million subscribers of the Employees´ Provident Fund Organisation (EPFO) can now make down payment and pay the equated monthly instalments from their EPF accounts to buy houses.
The subscribers will be able to withdraw up to 90 per cent of their accumulations in their PF account to purchase homes.
The EPFO has amended the scheme by insertinganew paragraph —68 BD —to the EPF Scheme, 1952
Over four crore subscribers of the retirement fund body Employees Provident Fund Organisation (EPFO) can now make down payment and pay EMIs from their EPF accounts to buy homes.
The subscribers of the EPFO will be able to withdraw up to 90 per cent of their accumulations in their PF account for purchasing homes.
The EPFO has amended the scheme by insertinganew paragraph —68 BD —to the Employees´ Provident Funds (EPF) Scheme, 1952, to enableasubscriber to make down payment to buy homes and pay EMIs through the EPF account,asenior official said.
The official said, “Since the labour ministry has issuedanotification for the purpose, the scheme stands amended.” Under the new provision, an EPF subscriber being a member of a cooperative or housing society with at least 10 members can withdraw up to 90 per cent from the fund for purchase ofadwelling house or flat or construction ofadwelling house and acquisition of site. It also provides that monthly instalments for repayments of any outstanding payment or interest may also be paid from the amount to the government, housing agency, primary lending agency and banks concerned.
However, the withdrawal facility from the PF account will be available to only those PF members who fulfil the conditions prescribed.
One, the member applying under this window should have contributed to the fund for at least three years.
The facility will be available only once to every member during his or her lifetime.
The rule applies to all those who together with their subscriber spouse have at least Rs 20,000 in their accounts.
The Business Standard New Delhi, 25th April 2017
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