There are over 4 crore subscribers of the retirement fund body EPFO in the country at present. EPF has announced all the members/ subscribers can now make down payments and pay EMIs from their EPF accounts to buy homes.
Inserting the paragraph 68 BD to the existing set of laws Employees' Provident Funds (EPF) Scheme, 1952, EPF confirmed that subscribers of EPF arrange down payments to buy their residential assets and pay EMIs through EPF account.
The labor ministry has issued a notification highlighting this intention, the scheme stands amended. Under the amended provision, being a member of a co-operative or housing society an EPF subscriber with at least 10 members can extract up to 90 per cent from the fund to buy a personal residential property or apartment or construction of a dwelling house and acquirement of the property site.
It additionally offers monthly installments for repayments of any outstanding payment or interest may also be paid from the amount to the government, housing agency, major debt agency and banks concerned. However, PF subscribers who carry out the prescribed terms and conditions will be benefitted under this revised scheme of EPFO. This new rule applies to all those who jointly with their subscriber maintain at least RS. 20000 in their PF accounts. Besides, the member applying under this window should have contributed to the fund for at least three years in a row. The facility will be accessible no more than one time to every member during his/her lifetime.
The fact of matter is housing is an obvious cost of living. HFCs are expecting more homebuyers after retirement. Nothing better than a home investment, can generate more cash inflow. Sidestepping all difficulties buying a home gets easier for a retired person now.
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