Government Plans to Launch Housing Scheme for EPFO Subscribers
A scheme is processing by the government of India for providing a low-cost housing for retirement fund body EPFO’s over five crore subscribers.
According to the information sourced by Labour Minister Bandaru Dattatreya, government is exploring the possibility for providing a suitable low-cost housing scheme for subscribers of Employees’ Pension Fund. It is in preliminary discussion stage.
In a reply of a question, he said that whether the government or the EPFO has introduced/proposes to introduce a scheme to allow its subscribers to pledge their future PF contribution to buy low-cost houses.
On September 16 last year, the proposal to allow EPFO subscriber to pledge their future PF contribution to buy low-cost houses, was listed on the agenda of the meeting of the Employees’ Provident Fund Organization’s EPFO trustees meeting. For this proposal, a report of expert committee on housing facility for the subscriber was also presented to the trustees.
The committee has given a green signal and recommended the scheme to facilitate EPFO subscriber to buy house where they will get an advance from their PF collection. The scheme will also be allotted subscriber to pledge future PF contribution as EMI (Equated Monthly Installment) payment.
For pledging future contribution of subscribers as EMI payment, a tripartite agreement will be signed between member, bank/housing agency and EPFO.
A suggestion was also given by a panel 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.
It was suggested the benefits under the scheme of Ministry of Housing and Urban Poverty Alleviation can also be extended to the beneficiaries of the scheme.
However, the panel had suggested this scheme for low income formal workers who are EPFO subscribers and could not buy a house during their entire service period.
A scheme is processing by the government of India for providing a low-cost housing for retirement fund body EPFO’s over five crore subscribers.
According to the information sourced by Labour Minister Bandaru Dattatreya, government is exploring the possibility for providing a suitable low-cost housing scheme for subscribers of Employees’ Pension Fund. It is in preliminary discussion stage.
In a reply of a question, he said that whether the government or the EPFO has introduced/proposes to introduce a scheme to allow its subscribers to pledge their future PF contribution to buy low-cost houses.
On September 16 last year, the proposal to allow EPFO subscriber to pledge their future PF contribution to buy low-cost houses, was listed on the agenda of the meeting of the Employees’ Provident Fund Organization’s EPFO trustees meeting. For this proposal, a report of expert committee on housing facility for the subscriber was also presented to the trustees.
The committee has given a green signal and recommended the scheme to facilitate EPFO subscriber to buy house where they will get an advance from their PF collection. The scheme will also be allotted subscriber to pledge future PF contribution as EMI (Equated Monthly Installment) payment.
For pledging future contribution of subscribers as EMI payment, a tripartite agreement will be signed between member, bank/housing agency and EPFO.
A suggestion was also given by a panel 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.
It was suggested the benefits under the scheme of Ministry of Housing and Urban Poverty Alleviation can also be extended to the beneficiaries of the scheme.
However, the panel had suggested this scheme for low income formal workers who are EPFO subscribers and could not buy a house during their entire service period.
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