Buying your own home is a dream that can now be fulfilled more easily. With the announcement of the schemes such as ‘Houses for all by 2020’ the subscribers of the EPFO scheme can now withdraw up to 90% of the Provident Fund. Now, coming to the other hand, many suburban areas in India are now getting developed as major residential areas. Palakkad in Kerala is also emerging as one of the major residential areas. Many major construction projects are going on in the area where villas and independent houses can be bought. If you are planning to buy Houses in Palakkad then reading the following post will prove beneficial to you.
The following post comprises details on buying the houses with EPF. So, read the following post and find all that you should know about buying homes with EPF.
EPF Housing Scheme – Details:
- EPF housing scheme allows the subscribers of EPFO to use 90% of the Provident Fund for buying homes.
- The EPF amount can be used to pay the EMIs and financing the down payment as well. Hence, buying your own home can be done easily by the Government Employees.
- To withdraw the amount from the EPF account in order to buy the home or to build the home, the employee must have completed at least 5 years of keeping the savings in the EPF Account. The amount of withdrawal can be done by the owner of the account, his wife or by both of them jointly.
- There is a different limit on every kind of withdrawal. If you want to withdraw the amount to purchase a plot for your home, then the limit is decided by your 24 months’ basic salary along with the dearness allowance.
- On the other hand, if the withdrawal is being made to build a new home, the maximum cap is placed at the 36 months of the basic salary and Dearness Allowance. Once you have withdrawn the amount, you have to begin the construction in 6 months. The construction should be completed within 12 months starting from the date of last instalment.
- If, however, you are planning to buy a readymade home using your EPF then the deal should be sealed within 6 months of amount withdrawal. So, this is applicable to the people that wish for using EPF to buy your home in Kerala.
So, the current policies for housing have made it really easier for everyone to own a home. So, when are you buying your own home?