If you are planning to build your own house, your Provident Fund (PF) savings can help. Under EPFO ​​rules, partial withdrawal of PF funds is allowed even during employment for housing-related needs.

If you are employed, your company would have opened a PF account for you as per the rules. For employees with PF accounts, a fixed amount is deducted from their salary every month and deposited into the account. The company also contributes an equal amount to the employee's PF account. But did you know that you can withdraw your PF money even while you are still employed? There are several important reasons for which you can withdraw PF money during your employment.

So, if you are planning to build or buy a house, your Provident Fund savings can be a great help. Under the current EPFO ​​rules, partial withdrawal of PF funds is allowed even during employment for housing-related needs. However, certain conditions and limits have been set, which are important to know. So, let's tell you today how you can withdraw PF money for building a house and how much can be withdrawn.

What are the rules for withdrawing PF for a house?

PF withdrawal related to housing in EPFO ​​is done under paragraphs 68B, 68BB, and 68BD. After EPFO ​​3.0, the process has become easier and online, but there has been no change in the limit for PF withdrawal for a house. This means that while the facility has become easier, withdrawal of the entire amount is not permitted. Also, to withdraw PF for building or buying a house, the employee must be an EPF member. The UAN should be active, and Aadhaar, PAN, and bank-related KYC should be complete. Additionally, the property for which the PF is being withdrawn must be in the employee's name, spouse's name, or in the joint names of both. Housing PF is not granted without proof of ownership. How much money can you withdraw?

For buying or building a house, a minimum service period of 3 to 5 years is generally required. However, if the PF is to be used to repay a home loan, a service period of approximately 10 years is applicable. For house renovation, the house must be at least 5 years old. For buying or building a house, an employee can withdraw up to a maximum of 90 percent of their total PF balance. Additionally, there is a limit that the PF withdrawal cannot exceed 36 months of basic salary and dearness allowance (DA). The employee will receive the lower of these two amounts.

Separate rules for home loans and renovations

For paying home loan EMIs or repaying the loan, up to 90 percent of the PF balance can be withdrawn. For house repair or renovation, the limit is set at 12 months of basic salary and DA. In both these cases, this facility is available only a limited number of times in a lifetime. Furthermore, after completing the required service period, an employee can apply for housing PF at any time. After EPFO ​​3.0, online claims are usually settled within three working days. However, this is subject to the condition that KYC and documents are complete.