PF withdrawal for house construction

[jackalbda]

Hello,

Any idea hows the PF amount ( non refundable loan for construction) disbursed ? Like, will it be given in the employee's name or directly to the contractor , who builds the house? If its in contractor's name, will PF office ( EPF Bangalore ) give multiple cheques as the builder/contractor has to be settled as the stages of construction get progresses. Also any idea how long does it take to get the money credited into the account after applying ? Will I have to run behind the officers to get it done?

TIA,

[apnagu]

Hi,
If you got any info,Please pass on to me.

[mramki_77]

I do not know about PF Trust. But I can give info about my experience. I took loan from my company PF trust

1.Roughly between 70-80% of PF amount you would get
2. Amount would be in employees name
3. It took 1 month for me to get the amount. Might be more with PF Trust since it is govt owned
4. Definitely you have to run behind the officers to get it done

Thanks
Ram

[sudhirts]

any idea, what is the interest rate charged for such loans?

[mramki_77]

Its not a loan. Its partial withdrawal. But we need to proof that we had withdrawn for housing (either flat or construction of house).

[jackalbda]

Exactly, how do I prove that its for construction , unless the trust give the cheque directly to the builder/contractor?

[Sachin123]

very recently the PF withdrawal was sent to the account holders account instead of the builder. But the Payroll said they would send it to the builders name directly though.

Normally it will be issued in the name of the builder after you proivde the agreement copy and other details

[jackalbda]

Posting the details that I got from my employer. My company's PF account is with Govt's EPF and others might vary ( if its a trust or something ).

Time Taken roughly ( Due to heavy load of backend operation as part of making the process online)
---------
1. 4-5 months

Docs to submit
--------------
1. Plan/ Estimate
2. BDA Approval on the plan
3. Sale Deed.
4. Mother Deed
5. Construction Agreement with the contractor
6. Property Tax Paid Receipt.
7. Encumbrance Certificate 13 yeas
8. Canceled Cheque

How much will you get ?
---------------
90% of the total ( Employee + Employer + interest ) or 36 months of basic whichever is lesser.

Who will receive the money?
---------------
Will be credited into employee's a/c

[rangavittala]

my friend taken flat recently from builder margin money paid thru PF withdrawal within 1 month got amount in name of builder

[kbaijuk]

Thanks Jack, that indeed very useful information. Just have one query on point 2, you mentioned BDA approval of plan, as per my knowledge BBMP has to approve building plan of a house, can we read it as BBMP approval of the plan?