Low cost houses for Provident Fund subscribers?

Admin May 06, 2016, 11:34 AM Bangalore,India.
Low cost houses for Provident Fund subscribers

The Employee Provident Fund Organization is planning to draft a proposal for its subscribers to provide low-cost housing schemes.

The proposal which has been getting a lot of approvals and disapprovals since early this year, it has been a bumpy ride for the organization to decide if the scheme has to be introduced.

Changes-in-EPFO-Policies

Even though this particular scheme mainly came into the picture for the low income provident fund employee subscribers who could not buy a home in their service period, it is suggested that the benefits under the schemes of ministry of housing and urban poverty alleviation can also be extended to the beneficiaries of the scheme.

The scheme is a tripartite agreement between the Employee Provident Fund subscriber, EPF Organization and the bank or housing agency pledging the future contributions of PF of that member will be paid as EMI.

Under this scheme, the committee has unanimously recommended to facilitate subscribers to buy houses where they will get an advance from their PF accumulation and will be allowed to pledge their future PF contribution as EMI (Equated Monthly Installment) payment. The panel had suggested that the subscribers will purchase a dwelling unit with loans from bank or housing finance companies and hypothecation of property in favour of the latter.

bandaru-dattatreya speech

The retirement body EPFO is working on this proposal for their over 5 crore subscribers. Labour Minister Bandaru Dattatreya stated the possibility for providing a low-cost housing scheme for the EPF subscribers earlier this month.



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