New Delhi: Government will amend EPF scheme to enable around 4 crore members of retirement fund body EPFO to withdraw up to 90 percent of their fund for making down payments while buying homes.
Here are key things you need to know.
The amendment in the scheme will also allow the Employees' Provident Fund Organisation (EPFO) subscribers to use their EPF accounts for paying equated monthly instalments (EMIs) of home loans.
Under the new proposed provision in the EPF scheme, EPFO subscribers would have to form a cooperative society with at least 10 members for availing the facility.
The new provison 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, can withdraw upto 90 percent from the fund for purchase of dwelling house/flat or construction of dwelling house/acquisition of site.
The proposed provison also provides that 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 proposed paragraph to be inserted in EPF scheme has not been notified, therefore, no targets have been fixed (for giving advances under this facility).
The withdrawal facility from the Provident Fund (PF) account under the Scheme will be available to only those PF members who fulfil the conditions prescribed.
With PTI Inputs