There is good news for working people planning to buy a house for the first time! The Employees’ Provident Fund Organization (EPFO) has made significant changes to its withdrawal rules. After this, it has become easier than ever to withdraw more money from the PF to buy a house. Let us tell you that now EPFO members can use PF money to buy a house only after 3 years of opening their PF account. This is a game-changing decision that will help millions of people realize their dreams.
New rule in EPF Scheme, 1952
The recently added Para 68-BD in the EPF Scheme, 1952 allows EPFO shareholders to withdraw up to 90% of the amount deposited in the EPFO account. This 90% withdrawal amount can be used for a down payment or EMI payment to buy a house. Earlier, EPFO members were allowed to withdraw money only after 5 years, but now this period has been reduced to 3 years, which will also give new employees a chance to fulfill their dream of owning a home soon.
Withdrawing money from EPFO is now easier
After the change in the rules of Para 68-BD of EPF Scheme, 1952, EPFO shareholders now have many options to use their money. The biggest change in the new rule is that withdrawal of money is allowed only after 3 years of opening the account. This is a big relief for the youth who want to buy a house at the beginning of their career. However, the facility of withdrawal to buy a house is given to a member only once in a lifetime.
Experts say that this change of EPFO will help lakhs of employed people who are dreaming of a house. They will be able to withdraw money from their PF to make the down payment and buy their own house. This will also fulfill their dream of buying a house. Its effect will also be seen on the real estate market, which will increase the demand for houses.
PF account holders also got these other reliefs
Apart from changing the rules for withdrawal to buy a house, EPFO has also given some more important reliefs to its account holders, which have made their processes even easier. Earlier, there was automatic settlement of claims up to ₹ 1 lakh. Now this limit has been increased to ₹ 5 lakh, which will allow more claims to be settled immediately.
Earlier, 27 document verifications were required; now, the claims will be settled on only 18 parameters. This has made the process even faster. Now, in 95% of the cases, claims are being settled within 3-4 days, providing great convenience to the members.
Reach and Growth of EPFO
EPFO has more than 7.5 crore active members across the country. This organization is growing continuously. EPFO is adding 10 to 12 lakh new members every month through its 147 regional offices spread across the country. This shows how important EPFO is for the working class of the country and how it is securing their future.