Planning to buy a new home? Perhaps, there couldn’t have been a better time than this! With the central Government planning to allow the provident fund holders to withdraw 90% of their savings at once, it has not only spread a ray of hope to all the home buyers, but has also eased up the home buying process to a significant extent. With this move, the centre will now enable around 4 crore members to use almost the total fund saved in their PF account and make down payment while purchasing flats, apartments, bungalows, lands etc, thereby mellowing down the entire course of making investment.
When every salaried person has to contribute a certain amount in his/her provident fund each month, there also remains an array of terms & conditions which cannot be ignored by the holders at any cost. Apart from showcasing all the relevant documents, one also has to state a valid reason for withdrawing money.
However, by permitting the EPFO subscribers to make the best use of their EPF accounts, the centre has now opened a new gateway for them to pay monthly EMIs of home loans. As a responsible subscriber, all you need to do is craft a cooperative society with having a minimum strength of 10 members, so that the facility is equally availed by each of the associates without any contradiction. Only a housing society having at least 10 members of EPF can take out maximum 90% of the fund for buying residential as well as commercial properties.
According to the new scheme, the total amount signifying the credit of the holder can also be used for the payment of monthly installments which is actually meant to strengthen the buyers’ motif to a significant extent. However, the Rajya Sabha has also been notified about the fact that there would be no target while giving advances under this norm. Besides, the facility of accessing 90% of the fund will be available to only those members who will adhere to all the conditions prescribed in the scheme.