Planning to Buy a New Flat? How Much PF Can You Withdraw and What Steps to Take?

I am K. Kannan, working with a company from 2004 until now. I am planning to purchase a new flat, so I am planning to withdraw PF. For example, my PF Account Balance is 1,50,000. How much fund can I withdraw from it? I also need your advice on the necessary actions to be taken for PF withdrawal.

I am looking forward to your reply.
Regards.

A member of PF can take a loan from PF after continuous service of 5 years. The loan is given from only the member's share of the contribution. The loan taken cannot be repaid, but if the member wants to repay the same, he has to repay it with interest.

Reasons for Taking a Loan from PF

A member can take a loan from PF due to the following reasons:
- For his/her marriage.
- For daughter's marriage.
- For construction of a house or renovation of a house.
- For higher studies.
- During a layoff or lockout of the factory.

Form 31 will be applicable to take a loan/advance from EPFO. Hope this will solve your issue.

Thank you very much. Just to clarify, am I only able to withdraw from the Employee Contribution with Form 31, or do I need to submit any declaration as well?

Thanks and regards,
K. Kannan

The rule position is as follows:

Reference - Para 68B

Purpose: For the purchase of a dwelling house or ready-built flat/construction of a dwelling house.

Eligibility Conditions:
- Membership: 5 years.
- Minimum balance in Employee's share: Rs. 1000.
- Property should be free from encumbrances.
- No second advance is allowed.

Amount That Can Be Withdrawn:
1. 36 months Basic wages + DA or
2. Amount available in Provident Fund account (Both shares) or
3. Cost of house/construction –
Whichever is the least.

Documents Required:
Declaration signed by the member and employer along with Form 31.