Personal Finance

EPF Members Will Get Housing Loan Subsidy of Rs. 2.67 Lakhs

By Mrigank Misra

Posted on June 24, 2017

Members of Employee’s Provident Fund Organization (EPF) will get 2.67 lakhs as Housing subsidy under Pradhan Mantri Awas Yojna. An agreement has taken place between EPFO and HUDCO.

Big Decision for the Middle Class Salaried Employees:

There are nearly 4 crore members of EPFO that can get benefit from this scheme. In this, the member can withdraw their provident fund amount up to 90% from their account. For this, the PF rule 1952 has been changed. The only requirement is that the PF account should be 3 years old. Provident fund is basically a form of pension where the employee gets a lump sum amount after he exits the organization he is working in.

EPFO managed to sign an agreement with Housing and Urban Development Corporation on Wednesday under which the EPF members will get a subsidy of 2.67 lakhs under PMAY. It is expected that nearly 1M members will benefit from it. This MoU is signed keeping in mind the working sector that finds trouble in building their own houses in urban cities due to high costs. It will not only be beneficiary for industrial sector but also to NDA for the 2019 elections.

Details of the EPF Housing Loan Scheme:

The EPF members can pay EMI from their provident fund and can take up to 90% of their already collected fund from their EPFO account. HUDCO will provide loans to the members and the EPFO will provide all the details to HUDCO of its members. It may be inevitable that HUDCO may not provide loan to all the members who are buying their house, in that case a group of EPF members can approach near banks for the loans.

The EPFO won’t be responsible in case the member is unable to repay the loan. It will be a dispute between the member and HUDCO as per the signing pact. The government is aiming to build 2 crore houses by 2022 under Housing for All Scheme to provide permanent home for weaker section of the society. This project will not only provide house to the needy but will also boost up the real estate sector which suffered due to demonetization last year.