Employees’ Provident Fund Organisation (EPFO) is planning to introduce a new scheme. Through this upcoming EPFO Scheme, which will allow its subscribers to pledge the provident fund amount to buy low-cost homes, and they can use this account to pay EMIs (Equated Monthly Instalments)
“We are working on a housing scheme for members of the Employees’ Provident Fund Organisation (EPFO). Under it, members will be allowed to pledge their PF accumulations to buy homes,” mentioned Labour Secretary Shankar Aggarwal.
This scheme was under the proposal from a long time, which will be put forward before the meeting of Central Board of Trustees expected to be held next month. Once if the proposal is approved, then the scheme will be available to 4 crore subscribers.
“We don’t want to impose anything on the subscribers. Therefore, we will not buy land or build houses for them. They will be free to choose their homes from the open market,” labour secretary added.
According to the panels’ suggestions, this scheme will be available to low-income formal workers who are EPFO subscribers who cannot afford to buy a house during their service period.
Under this scheme, there will be a tripartite agreement between, member, House agency or bank and EPFO.
The same scheme was listed on the agenda of the Central Board of Trustees meeting held on September 15 last year. A report from the expert committee related to the housing facility for the subscribers was also presented at the meeting.
The committee has consistently recommended a scheme to facilitate subscribers to buy low-cost homes. It suggests that the benefits under this scheme of Ministry of Housing and Urban Poverty Alleviation could be extended to the customers.
Labour Minister Dattatreya had told Lok Sabha in a written reply saying “Government is exploring the possibility of providing a suitable low-cost housing scheme for subscribers of Employees’ Pension Fund. It is in the preliminary discussion stage.”