Owning a home is the dream of almost all the people on this globe. But, financial crisis prevailing across the world have made it a lot difficult. Thus, people are turning to banks and other investment companies to take loans to fulfill their dreams. Recently, a notification from Indian Labor Ministry has proved a ray of hope for many people. It is beneficial for those who are thinking of either buying or constructing a home.
The Ministry has introduced an amendment in the Employees Provident Fund Scheme 1952. It has given permission to the members of Employees Provident Fund Organization (EPFO) to withdraw 90% of their saved funds to buy a home. This notification has amended the old rule and is applicable from 12th April to onward.
There are some conditions set on this process. The first is that the applicant should be a member of any registered housing society or cooperative housing society. This society with at least 10 members can apply for a withdrawal. The period of being an EPF member should be at least 3 years. This is only a one-time facility for members whose share in the interest is not less than 20,000.
So far as the repayment is concerned, it will be through society account or lending bank. A person can also use his EPF account for the payment of small installment amount. Here, one thing to keep in mind is that the person is not going to receive the amount. Instead, the construction company will receive the funds in easy installments.
Starting the process requires the filling up and submission of specific forms signed by PF Commissioner. This commissioner issues the certificate of the personâ€™s contribution to EPF. After this, the person can withdraw 90% of his total EPF balance.