BENGALURU: Having a dream home is a day-dream for many, particularly who lives in a rented home relying on monthly wages and striving hard to jump over the hurdles they face in their day-to-day life. But no worries!! There is chance of getting a refuge for Employees Provident Fund Organization (EPFO) subscribers.
True! As announced in the parliament, Government of India is working on a scheme to offer low-budget housing for over five crore members of EPFO’s retirement fund body.
Last year, a proposal was listed on the docket of the meeting of the EPFO trustees meeting on September 16. The proposal states that EPFO members to pledge their future Provident Fund contribution to buy low-cost houses. For trustees’ perusal, a report of the expert committee on the housing loan facility for the EPFO subscribers was also presented.
Bandaru Dattatreya, Labour Minister was replying to a question on whether the government or the EPFO has introduced or purports to bring out a scheme to allow its subscribers to pledge their future PF share to buy low-budget houses? He said in a written reply to Lok Sabha that the government is exploring the probability for offering a suitable budget housing scheme for members of EPFO.
The recommendation of a scheme to facilitate subscribers to buy houses was unanimously addressed by the committee. Whereby, the benefiter will get an advance from their PF accumulation and will be admitted to pledge their future PF apportion as Equated Monthly Installment (EMI) payment. There will be three-party agreement with member, EPFO, and bank/housing agency and for pledging future PF parts as EMI payment, under the proposed scheme.
The panel suggested that the subscribers will purchase a habitation unit with loans from housing finance organizations or bank and hypothecation of property in favor of the latter. Also, the benefits under the scheme of Ministry of Housing and Urban Poverty Alleviation can also be extended to the beneficiaries of the schema. However, the panel had hinted this scheme for low income formal workers who are EPFO member and could not buy a home during their entire service period.
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