PF funds can now be used to pay home loan emi, buy houses but there are caveats

The Employees Provident Fund Organisation has relaxed the rules to use PF to pay for home loan EMIs or to buy a house or land, according to a report by NDTV Profit. This scheme available for the government's 'Housing For All' project comes with many caveats. 

Earlier, subscribers could withdraw PF to pay for home loans, buy houses, or land however, they could only do so after they had contributed for five years and only 36 months worth of accumulation could be withdrawn. Now that requirement has been relaxed to three years. 

However, the money cannot be withdrawn and will not be given to the subscriber. The report says that the money will only be given by the EPFO to the government authority or housing agency or to a lender. 

Another requirement is that the subscriber will need to be a member of a cooperative society or a society registered for housing purpose which has atleast ten members, the report said. 

While the EPFO subscriber has to apply to avail of the scheme, they would get a go-ahead only after filling certain criterion. 

The scheme would also be available only to those subscribers who along with their spouse have atleast Rs 20,000 in their accounts, the report said. 

However, if the housing deal falls through or the house or land purchase is cancelled, the subscriber would have to remit the entire amount disbursed till the date to the organisation. He/she will not be eligible to apply for this facility again during their lifespan.