How to Use Your Provident Fund to Buy Property in Thane?

How to Use Your Provident Fund to Buy Property in Thane?

When you buy a property in Thane, the biggest question that arises is how you are going to fund the purchase of the house. For a person looking for the best property to invest in Thane, there are many ways you can fund the purchase. Using your Employee Provident Fund (EPF) also known as Provident Fund is one of them. If you have been working with a company and became a member of Employee Provident Fund Organisation (EPFO) you might have noticed that monthly a small percentage of your salary is being invested in provident fund. Provident fund is then provided to you when you retire. EPFO is the organization that handles your Provident Funds.

Recently EPFO has announced that the employees can withdraw nearly ninety percent of their total provident fund to purchase a property. The fund can be used for the construction of the house, buy a flat (ready to move or in-construction), or buy a plot. The move was made after the government announced the ‘house for all in 2022’ initiative. To apply for the withdrawal you need to be a part of EPFO. You are considered to be a member of EPF if you have a provident fund number.

With the introduction of this rule, you can buy a property in Thane or at least increase your down payment amount which will help you take fewer home loans. However, when you are looking for the best property to invest in Thane, keep in mind the PF won’t be released to you, it will directly be released to the housing society or the builder. When you buy a property in Thane the cost of the house or ninety percent of the total provident fund whichever is less shall be given to you. However to apply for the amount you need to be a member of a registered society that has at least 10 members. If you are looking to buy a property in Thane this could come as good news. The allocation of the fund will be the balance you put in and your employer put into the provident fund.

So how do you apply for the funds when you are looking for the best property to invest in Thane? Once you become a member of the society you could individually or jointly with other society members apply for the funds. You will need to fill a form in the prescribed format (Annexure-I) to get a certificate from EPFO. In Annexure-I the person applying for the fund (You) asks for the deposits and balance made to the account in the last three months before applying. This will allow the EPFO to determine the rate of EMI. The person applying has to mention the details of the society or bank to whom the certificate has to be issued. The EPFO will then give a certificate in a prescribed format (Annexure-II) showing outstanding balance and the deposits made to the account by you. You could alternatively take a printout of the Pass Book available on the website of EPFO. If you wish to apply for payment of EMI in addition to Annexure-I you will need to fill another form in a prescribed format (Annexure-III). Annexure-III will carry information such as provident fund amount, provident fund and loan account number, lender name, address, etc. EPFO doesn’t take any liability if the employee resigns from his current job. In case funds in your EPF get over you will need to find your sources to pay for the EMI.

It is as easy as filling a form to buy a property in Thane. Make sure you use the provident funds if you have already made some investments to spend your retirement with ease, after all, what good is the money if it can’t even provide a roof over the head.