New Delhi, July 30 — In a significant step toward making homeownership more accessible, the Employees’ Provident Fund Organisation (EPFO) has revised its withdrawal rules, offering a major benefit to first-time homebuyers. Under the updated policy, EPF members can now withdraw up to 90% of their provident fund savings for buying or constructing a home after just three years of account membership.
This is a substantial reduction from the previous eligibility period of five years, and is expected to provide financial relief to millions of salaried individuals aiming to purchase their first home. The withdrawn amount can be used for home loan down payments, construction costs, or EMI payments.
EPFO clarified that this facility can be availed only once during a member’s lifetime, and is exclusively for those purchasing their first residential property.
Streamlined Process for Faster Withdrawals
The reform is part of a broader set of changes introduced by EPFO to make the fund withdrawal process quicker and more efficient:
Members can now instantly withdraw up to ₹1 lakh through UPI or ATM-based services.
The threshold for auto-approval of claims has been increased from ₹1 lakh to ₹5 lakh.
The number of verification requirements has been brought down from 27 to 18, enabling most claims to be settled in just 3–4 working days.
Additional flexibility has been granted for withdrawals related to education, medical emergencies, and family events such as weddings.
