Can You Use PF Withdrawal to Purchase a House?

Not everyone has enough cash stashed away to buy a new house in Coimbatore outright. Most people will need to use some of their personal savings for the downpayment and get a loan to cover the rest. But did you know that there is another option? If you want to buy a home now without touching your savings, try withdrawing from your Provident Fund (PF).

In this blog, we will explore the conditions for withdrawing your PF savings. We’ll also examine the specific situations and factors that make a PF withdrawal applicable so you can make the right decision.

When can you withdraw your PF savings?

You can use your PF savings to buy a new house in Coimbatore. You can also withdraw it to purchase a plot or repay a home loan.

Note that you have to meet a set of criteria to be able to do this. You can only withdraw your PF savings to buy a new home if you meet the following conditions:

• Minimum service requirement: You need to have been employed with your current employer for 5 or more consecutive years.
• Proper usage of funds: You can only withdraw your PF to buy a ready-to-move-in house.
• Ownership clause: The house must be in your name or jointly owned with your spouse.
• Withdrawal limit: You can withdraw up to 90% of your total PF balance or the property cost, whichever is lower.
• Loan repayment option: You can withdraw PF savings to repay your home loan, as long as it’s from a government-recognised lender.

Buy the right home

PF withdrawals are allowed to fund ready-to-move-in homes from housing boards or builders, so be sure to buy a new house in Coimbatore from a trusted builder.

How much can you withdraw?

Your withdrawal limit is capped at 36 months’ basic salary plus 90% of the PF balance or DA, whichever is lower.

Ready to buy a home?

Search for a new house in Coimbatore here at JRD Realtorss. Download our app or explore our current projects on this website. You may also call +91 81899-99999 or +91-60339-33333 to speak to one of our helpful agents.