Now, subscribers of the Employees Provident Fund Organisation would be able to pledge their provident fund to buy houses and use their accounts to pay equated monthly installments (EMIs) from next fiscal, reports PTI.
Here are few things to know on housing scheme by EPFO:
- "We are working on a housing scheme for the subscribers of EPFO. We can launch the scheme in 2017-18 after introduction of our online services like settling PF withdrawal claims by March-end," EPFO Central Provident Fund Commissioner VP Joy told PTI.
- Joy also added that the scheme will enable subscribers to pledge their PF accumulations to buy homes and pay home loans EMIs through their EPF account.
- Under the housing scheme, the EPFO will act as facilitator for its subscribers so that they can buy affordable homes for themselves during their service period. The body has no plans to buy land or build houses for their subscribers.
- As per PTI reports, under the proposed scheme, there will be a tripartite agreement between member, bank/housing agency and EPFO for pledging future PF contributions as EMI payment.
- Last year, the proposal for facilitating the EPFO subscribers to buy low cost homes was listed on the agenda of the CBT meeting held on September 16.
- The committee has unanimously recommended a scheme 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 payment, PTI said.
- The panel had suggested that subscribers will purchase a dwelling unit with loans from bank or housing finance companies and hypothecation of property in favour of the latter, added further.