Use 90% Of Your PF For Home Down Payment; Know The Withdrawal Process Here

Last Updated:July 15, 2025, 18:29 IST

Earlier, EPFO allowed housing withdrawals after 5 years, based on limited contributions. Under Para 68-BD, members can now withdraw 90% once in a lifetime with fewer rules

In a major relief for salaried employees looking to buy a home, the government has revised the Provident Fund withdrawal rules to make the process easier. Under the updated guidelines, EPFO members can now withdraw up to 90% of their PF savings after just three years of account opening. The withdrawn amount can be used for down payments, home construction, or even EMI payments.

Previously, EPFO members could only withdraw funds for housing needs after five years, with the amount calculated based on the lower of the employer’s and employee’s contributions over 36 months plus interest.

The new rule, Para 68-BD of the EPF Scheme, 1952, eliminates these constraints, providing significant relief and convenience for members. However, this withdrawal facility can be utilised only once in a lifetime.

Why The PF Withdrawal Rules Were Changed

The changes aim to simplify withdrawal rules, reduce down payment difficulties, activate passive savings, and make home buying more convenient for EPFO members. Alongside the new housing withdrawal rule, several other significant updates have been introduced to improve the overall PF withdrawal process.

Key Changes In PF Withdrawal Rules

From June 2025, EPFO members will be able to withdraw up to Rs 1 lakh instantly through UPI and ATM in emergencies. The auto settlement limit has been increased from Rs 1 lakh to Rs 5 lakh.

Additionally, the claims process has been streamlined, reducing the number of document checks from 27 to 18 parameters. Consequently, 95 percent of claims are now settled within 3-4 days, enhancing liquidity for employees.

To withdraw PF for purchasing a house, applicants must apply online through the EPFO Member e-Sewa portal. Aadhaar, PAN, and bank details must be linked to the Universal Account Number (UAN). After logging in, navigate to “Online Services,” select “Claim (Form-31, 19 & 10C),” and choose “PF Advance (Form 31).” The purpose should be specified as “Purchase of House,” and the required amount must be entered.

Relevant documents, such as the sale agreement, may need to be uploaded. Once submitted, the application status can be tracked online, and upon approval, funds are credited to the bank account.

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