Buying your dream home is probably on each and everyone’s bucket list. If it is on yours and you are facing a fund crunch, you have your EPF to fulfil
Buying your dream home is probably on each and everyone’s bucket list. If it is on yours and you are facing a fund crunch, you have your EPF to fulfill your lifelong dream. Kudos to the Indian government, you can now buy a home by withdrawing from your PPF. Any salaried person who is under the Employee Provident Scheme, who is a part of an establishment, irrespective of it being a government or private sector can do PF withdrawal for the purpose of a home loan. If you are looking forward to buy a home in Hyderabad with the help of EPF here are a few things which you should be aware of
What is the Employee Provident Fund?
Employee Provident Fund is known to be a great investment scheme that has gained a huge prevalence among salaried persons in India for its unmatched benefits like EPFO home loan. Governed by the Employee’s Provident Fund Act 1952, it came into force to provide a promising future to employees at the time of their retirement. It can also help their dependents in case of death of an employee.
New Rules Regarding EPF
Before you go buy a house in Hyderabad you should take a moment to understand the new rules with respect to EPF and how then can help you. According to the new rules, an obligatory requirement for a PF member to withdraw one’s PF money for buying a real estate property is that she or he needs to be a member of any registered housing society having at least 10 members. The employee also needs to have a PF number as only that employee who has been allotted a PF number is considered as a PF member by the EPFO.
As a member, one can always use the PF funds for making an outright purchase, as a down payment for a home loan, for buying plots or for the construction of a house. The members who have completed 3 years as a member of the PF will be eligible for this scheme. These transactions can be made through state government central government or even from a private builder, promoters or developers. BBG India is a great option if you are looking forward to making this purchase. They will help you throughout the journey of buying a house.
Secondary Market Deals Not Available
If you want to use the EPF to buy a house in Hyderabad you need to make sure that this deal is a primary deal. You cannot buy a home using EPF as a secondary market deal as the EPFO makes the payment directly to the government or the builder. BBG India can help you find the greatest homes in Hyderabad as they are one of the best in the market.
How Much Lump Sum to Withdraw?
The maximum amount which can be withdrawn is up to 90 percent of the balance which is present in the PF account or the cost of acquiring the property, whichever is less. The balance will include the employer’s share of contribution plus interest and members’ own share of contribution along with the interest. If it is a case of construction of the house and if it happens at a lower cost or the member doesn’t get an allotment of the house (where it was applied for), the amount has to be refunded back to EPFO within 30 days.
Pay EMI through PF
As stated in the new rules, a PF member who is also a member of any housing society is allowed to withdraw from the PF to pay full or part EMI for a loan in member’s name, after furnishing the details in a prescribed format. In addition to this, there is now an option to repay the installments which are pending to the society on a monthly basis from the future PF contribution of the member which was not available before. BBG India can guide you in finding the best home suitable for your requirements.
BBG India is your perfect partner for buying a house in Hyderabad. They have great projects which will definitely fulfill your lifelong dream of buying a dream home. Get in touch with them for a great deal!