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Now you can use 90% of your EPF to buy a home. Keep these 5 conditions in mind


Labour Ministry has said that an individual can now use their Employee Provident Fund (EPF) account money to finance their home buy.

Subscribers of Employees Provident Fund Organisation (EPFO) will now be able to withdraw 90% of the EPF amount for the down payment and pay EMIs of their home loan through the account.

A senior official on Monday had said that over four crore subscribers of EPFO will be benefitted with this move.

According to a PTI report, the retirement fund has amended this new scheme by inserting a new paragraph — 68 BD — to the Employees’ Provident Funds (EPF) Scheme, 1952.

The section 68BD will come as sub-section under 68B. The 68B talks about the withdrawal from the Fund for the purchase of a dwelling house/flat or for the construction of a dwelling house including the acquisition of a suitable site for the purpose.

However, 68BD benefits come with conditions. Here are five conditions which need to be fulfilled if you want to use the EPF amount for buying a home:

1. An EPF subscriber should be a member of a co-operative or housing society with at least 10 members to withdraw up to 90% from the fund for the purchase of a dwelling house or flat or construction of a dwelling house and acquisition of the site.

2. An EPF subscriber applying under this window should have contributed to the fund for at least three years.

3. The facility will be available only once to every subscriber during his or her lifetime.

4. The rule applies to all those who together with their subscriber spouse have at least Rs 20,000 in their accounts.

5. As per this window, EPFO will provide monthly installments 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, an official told PTI.