Purchasing a new house in Coimbatore is a major financial
undertaking, and not everyone has the immediate capital available to pay for a
home outright. Thankfully, there are options to assist with your purchase — such
as withdrawing funds from your Provident Fund (PF).
You can utilise your PF to purchase a ready-to-move-in property
from a housing board or a reputable builder. The withdrawal limit is capped at
the lesser of either 36 months of your basic salary plus Dearness Allowance
(DA) or 90% of your total PF balance.
What are the conditions for PF withdrawal to buy a new house in
Coimbatore?
To withdraw from your Provident Fund (PF) for a home purchase,
you must have completed at least five years of continuous service with your
current employer.
The amount you can withdraw is limited to the lesser of 90% of
your total PF balance or the actual cost of the home.
Note that your PF funds can only be used for:
·
Purchasing a
new, ready-to-move-in house, or
·
Purchasing a
plot of land and constructing a new house
You can also use your PF to repay an existing home loan,
provided the loan is from a government-recognized lender.
The new house in Coimbatore must be registered in your name or
jointly in your and your spouse's name.
Ensure that your property purchase agreement is finalised and
ready when you apply for the PF withdrawal. The Employees' Provident Fund
Organisation (EPFO) requires this document to verify the intended use of the
funds.
Documents to show when withdrawing PF to buy a new home
You need the following documents for a smooth PF withdrawal:
·
Sale agreement
or builder’s agreement
·
Owner
declaration to show the property is in your name or owned jointly with your
spouse
·
Employer’s
signature on Form 31
·
Bank account
details
Need advice?
If you are buying a new house in Coimbatore from JRD Realtorss, you can contact our team for personalised
advice on PF withdrawal. Call +91 60339-3333 or download our app.
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