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EPF Rule Change 2025: First-Time Homebuyers Can Now Withdraw 90% of EPF Corpus After 3 Years

  • Harsh Jain
  • Jul 14
  • 2 min read

Overview

In a major step towards making homeownership more accessible, the Employees’ Provident Fund Organisation (EPFO) has announced a new rule in 2025: First-time homebuyers can now withdraw up to 90% of their EPF corpus after just three years of membership. This landmark change is expected to help millions of salaried Indians arrange funds for their first home, especially for the crucial down payment.

EPF Rule Change 2025

What Has Changed?


Previous Rule

  • Eligibility: Members could withdraw for home purchase after 5 years of EPF membership.

  • Withdrawal Limit: Up to 36 months’ basic wages plus dearness allowance, or the total cost of the property (whichever is less).

  • Frequency: Not clearly specified for first-time home purchase.


EPF New Rule Change (2025)

  • Eligibility: Now, just 3 years of EPF membership is required.

  • Withdrawal Limit: Up to 90% of the accumulated EPF corpus.

  • Purpose: Can be used for the purchase of a ready house, construction of a new home, or purchase of land for residential purposes.

  • Frequency: This facility is available once in a lifetime for first-time homebuyers.


Legal Basis

  • The change is implemented under the newly added Para 68-BD of the EPF Scheme, 1952.


Why Is This Important?

  • Easier Down Payment: Arranging the down payment is often the biggest hurdle for salaried homebuyers. This rule allows members to tap into their retirement savings for this purpose.

  • Faster Access: With the reduced waiting period, younger employees can plan for homeownership earlier in their careers.

  • Boost to Affordable Housing: The move is expected to stimulate demand in the housing sector, particularly among first-time buyers.


How to Avail the New Benefit

  1. Check Eligibility: Ensure you have completed at least 3 years of EPF membership and are a first-time homebuyer.

  2. Apply Online: Use the Composite Claim Form (Aadhaar/Non-Aadhaar) available on the EPFO portal.

  3. Attach Required Annexures: Specific annexures related to Para 68-BD must be submitted.

  4. One-Time Use: Remember, this facility is available only once in your lifetime for home purchase/construction.


Expert Insights

Financial planners and real estate experts have welcomed the move, calling it a “game-changer” for India’s middle class. However, they also caution that members should balance their immediate housing needs with long-term retirement planning.


Conclusion

The 2025 EPF rule change is a significant step towards empowering salaried Indians to achieve their dream of homeownership. By allowing first-time homebuyers to withdraw up to 90% of their EPF corpus after just three years, the government is removing a major financial barrier and supporting the goal of ‘Housing for All’.


For more details or to check your eligibility, visit the official EPFO website or reach out to contact@kustodian.life.


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