You can now leverage up to 90% of your retirement savings parked in the Employees’ Provident Fund (EPF) account to have a house of your own. Under the new rules notified by the government, EPF members can make a one-time withdrawal or use their PF savings to make installment payments for buying a flat or a tract of land to construct a house.

For this new enabling provision to be effective, however, you need to find at least nine other EPF account holders who are also part of a cooperative society through which you intend to purchase a flat or land parcel. The society must be registered under any law.

Previously, employees who have completed five years of service were allowed to withdraw Provident Fund savings equivalent to 36 months of their salary (basic salary and dearness allowance) for the construction of a flat or 24 months of the salary for purchasing land. The notification said that EPF members can withdraw their savings to “purchase a dwelling house or a flat, including a flat in a building owned jointly with others, outright or on hire-purchase basis, or for the construction of a dwelling house, including the acquisition of a suitable site for the purpose.”

Repayment of loans

Employees with at least three years’ subscription to the EPF scheme will be allowed to withdraw their savings for housing purposes, including repayment of housing loans from their monthly contributions. In addition to lumpsum withdrawal of up to 90% of accumulations in PF accounts, members may opt for full or part repayment of loans out of monthly PF contribution also.

Further, the EPFO will make the payment for constructing flats or buying land directly to the cooperative society, housing agency or builders and not to the EPF subscribers.

In case the EPF subscriber fails to get the flat constructed due to some reasons, he/she will be liable to ensure that the withdrawn EPF savings is refunded into their provident fund account within 15 days “of such cancellation or non-allotment.”

From India, Ahmadabad
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Here is the EPO circular and copy of notification in Gazette.
From India, Bangalore

Attached Files (Download Requires Membership)
File Type: docx EPF-WITHDRAWAL FOR HOUSING.docx (14.6 KB, 63 views)
File Type: pdf Gazette Notification EPF Withdrawal-Circular-No.-WSU-3912017-Housing-Scheme.pdf (1.99 MB, 98 views)

Dear Friend,
I want to withdraw 90% of my pf contribution as per new rule 2017 for down payment to builder for flat booking which is under construction.
I checked current composite withdrawal form in which there is mentioned "for purchase of site/flat indicate cheque to be drawn in favour of and payees address", so in this case whether i have to mention builder name and address or need to mentioned my self name and address to withdraw pf in favour.

From India, Madras
Hello, The new circular states you can withdraw if you are a member of housing society. Are you a member of a society Thanks
From India, Bengaluru

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