Category: Real-Estates

Author: Srivari

Buy A Home Of Your Own With EPF: Here’s How!

Home is where memories are created with laughter and joy. For any homebuyer purchasing a property is a lifetime investment. While numerous financial schemes can ensure proper funding for real estate investment, the EPFO scheme has gained immense importance. This norm enables members of the Employment Provident Fund Organization (EPFO) to withdraw 90% of their Employment Provident Fund (EPF) Savings to pay the EMI payments for the home or the down payment, and even to buy land. This EPF scheme will enable nearly 4 crore EPF members to buy a dream abode without worrying about the hefty financial burden.

According to the EPF Scheme, members are entitled to withdraw 90% of their savings from their PF account or the cost of the property, whichever option is feasible for purchasing the property. Members can make monthly installments against an outstanding loan in the spouse or the EPFO member’s name. The payment will be directly transferred by the EPFO to the housing society or the lending bank and not to the member. However, homebuyers must remember that the EPF amount can be withdrawn only once if the member has been a part of EPFO for at least 3 years and the total savings, including interest, is more than Rs. 20000. In case a member fails to get the allotted plot of the apartment or the amount withdrawn exceeds the payable amount, the excess amount has to be refunded within 15-30 days.

The process of withdrawing from your EPF account

The EPFO scheme is a part of the Government’s agenda of “Housing for All” under the Pradhan Mantri Awas Yojana (PMAY), under which individuals having an annual income less than the specified income are entitled to receive Rs. 2.20 lakh subsidy. According to the new rules for availing EPF withdrawal for buying a house, a member must be a registered member of a cooperative housing society having a minimum of 10 members. To receive certification from the EPFO, a member can opt for individual application or apply in collaboration with a housing society in a specified format. Members have to fill in a total of 3 annexure forms to avail EPF withdrawal for house purchase.

In the Annexure I form, members need to fill in the details of the bank or housing society they are associated with. Following this, the Annexure-II will showcase the outstanding amount of the last 3 months’ deposit in the EPF account. If any EPF members wish to use EPF savings to pay an EMI, then in addition to Annexure I, a registered member has to fill in Annexure III. This last form will bear the employee details stating their PF number, PF amount, lender name, etc. However, if an employee leaves their job halfway through this payment process, EPFO is no longer entitled to repaying EMIs. It will subsequently be the sole responsibility of the member.

How the EPF amount helps you buy your new home

Before opting for EPF withdrawal for buying a house, home buyers must primarily contribute towards his/her provident fund for 5 years. While the withdrawal amount can vary according to individual needs if the amount is for a land purchase, the maximum cap limit is 24 months basic salary with dearness allowance. But if the member plans on EPF withdrawal for house purchase, the maximum cap limit exceeds 36 months of basic salary with dearness allowance. In this case, the home construction must begin within 6 months from the date of withdrawal and must be completed within a year from the last installment. If a home buyer withdraws the EFP amount for purchasing a ready-to-move-in apartment, the deal must be sealed within 6 months of withdrawal. The withdrawal can be made jointly or individually either in installments or as a one-time payment.

Srivari—a dream abode

One of the most eminent Real Estate developers in Coimbatore, Srivari Group offers a range of exotic residential real estate projects. Armed with six decades of expertise in real estate, the firm has constructed multifarious landmark projects, both in the residential and commercial sectors. Currently, two of their upcoming projects Srivari Ekantham and Srivari Saarang, are categorized under luxurious projects. For those planning to invest in apartments in Coimbatore, Srivari Vaibhav in Kavundampalayam, Mettupalayam road brings forth the happiness of luxury living while staying in proximity to nature. So if you are looking for apartments in Coimbatore, connect with Srivari, the renowned Real Estate developers in Coimbatore, offering ample housing schemes for you to dwell in your dream home.

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