Hi, I own a plot and want to construct a house.

Q: Hi, I own a plot and want to construct a house. it has been 15 years of me working and I want to withdraw money from my Employees provident fund ( EPF). How can I do this?

Sunil Joshi, Mumbai

18th April 2013

Legal in Mumbai

mumbai real estate

plots in mumbai

construction of house

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Replies (6)

Banks like SBI, Axis Bank, HDFC Ltd, ICICI Bank, etc, can be applied for a construction loan. As a thumb rule, if you are below 40 years, you should be eligible for around four times your net annual income as a loan of 20 years tenure. If the loan amount is below 30 lakh, the rate of interest will be in the range of 10% to 10.25% per annum.

Kishore Pathak, Mumbai

29th April 2013

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What are the banks that are approachable for this purpose?? Please guide!

Sunil Joshi, Mumbai

29th April 2013

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No Sunil, construction loan can't be taken out in one go.. It can be availed in parts depending on the progress of the construction. However, you will have to bring in your contribution in full before the lender disburses the loan.

Arup rajan, Mumbai

29th April 2013

Comment

Thanks for the reply! But I have a doubt.. Will I get the complete amount of loan from the construction loan in one go?

Sunil Joshi, Mumbai

29th April 2013

Comment

I agree with Mr Rakshit.. But firstly, you have to submit an estimate of the total cost of construction, duly certified by an architect/ civil engineer. Then you can take out a construction loan for constructing a dwelling unit on a piece of land already owned by you.

Bikram, Mumbai

29th April 2013

Comment

The provident fund which is provided by the organisations is for your future and will help you after retirement and hence should not be touched except in an emergency. In any case, PF with drawals are available only after five years and for specified purposes like acquiring a house or construction of a house. You have to submit the application form for withdrawal from your EPF along with the original title deed for verification, non- encumbrance certificate, estimated cost of construction and approved plan.

Rakshit, Mumbai

29th April 2013

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