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How To Use Your EPF To Finance Your Home Purchase?

by admin on March 11, 2019
How To Use Your EPF To Finance Your Home Purchase?

How to arrange a big amount to buy your dream home?

I think this is the vital question arises in everybody’s mind before making this biggest investment. Although people don’t have to pay the whole amount in one go they need to arrange the money for monthly installments.  The home purchase needs a huge sum which is difficult to arrange. Most of the people spend their life-saving money to purchase a home but sometimes they failed to fulfill their dreams.

Well, organizing a big amount is not a cakewalk but there are various ways that can help you to turn your dream into reality. Your EPF is one of them! Salaried people who are contributing their share into the provident fund, have an additional avenue to fund their home buying.

But How?

Before explaining the answer for how I want to describe some norms of EPFO to use the provident fund for housing investment.

You are eligible to use money in your PF account to buy your home only if you have been contributing in EPF from last five years and you have more than 20,000 balance in your PF account. If you satisfy all the above conditions then you can apply to withdraw your provident fund.

How Much amount can be Withdraw?

You are eligible to withdraw up to 90% of your EPF balance. But, the payment amount is not paid to you directly,  payment shall be made direct to Cooperative Society or housing agency or builder as the case may be. This amount can be in multiple installments as per authorization from a member.

I think after reading this most of you are feeling relaxed and anxious simultaneously. Anxious because still not get an answer for How.


Procedure to withdraw your PF money For House purchase

  • First of all get your PF account number along with EPF member’s name, balance and account details through an online EPFO portal.
  • After getting the detail, check that your account balance fulfills a minimum requirement or not.
  • Write an application to withdraw money for a house loan and EMI payments. In your application don’t forget to mention all your account details. Also, tell about your account balance in this application.
  • After getting approval from the commissioner, a certificate will be issued and this will help you in using your provident funds for a housing loan.
  • Finally, show your certificate to a builder or real estate consultant and EPFO department will fulfill your demands by paying the required amount or EMIs to your builder/contractor.


In Indian society owning a house is a social and psychological need. Facilitating the use of EPF money for purchasing our dream home is a smart move by the Indian government. It is a better option as compared to borrowing money from a bank or other financial institutions as you will be paying your own money and you don’t have to worry about repayment and interest to the bank.


Our own house means a lot to us. There are various sources from where one can fund the purchase or construction of a house – from borrowing from friends and relatives to taking a home loan. But using your EPF can be an ideal one. So, live your dreams and purchase the property of your choice by contacting the best property dealer.


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