How to Use your Provident Fund to Finance a Home Purchase
Although A Majority Of The Salaried Individuals Have A Provident Fund Account, Only A Few Are Aware That They Can Withdraw From This Fund, For Various Purposes Connected With A House For Purchase Of A House Or Plot Or For Construction Of A House Under The Provident Fund Scheme, An Employee Can Withdraw Money From His Provident Fund, After Completion Of Contribution Of Five Years, For The Purchase Of Plot And/Or Construction Or Purchase Of A House. The Loan Can Also Be Taken, For The Construction Of A House On The Plot Of Land Owned By You Or Your Wife, Or Jointly By Both. The Loan Amount Would Depend On The Purpose For Which You Are Taking The Loan. For Purchasing A Plot, The Loan Available Shall Be Restricted To 24 Months Basic Salary And Dearness Allowance (DA), Subject To A Maximum Of The Lower Of Either The Balance In Your Provident Fund Account Or The Cost Of The Plot. In Case You Want To Avail Of The Loan, To Purchase Or Construct A House, Availability Shall Be Enh...