Buying low cost homes to be easier from next fiscal for 'PF pledge takers'

Business
Oct 03 2016 02:46 PM
Trainee_tripti

Buying low cost homes to be easier from next fiscal for 'PF pledge takers'

New Delhi: From next fiscal year, it would be easier for four crore subscribers of the Employees' Provdent Fund Organisation (EPFO) to pledge their Provident Fund’s (PF) money. With that they can buy houses at low cost and use their accounts to pay equated monthly installments (EMIs).

"We are working on a housing scheme for the subscribers of the Employees' Provident Fund Organisation (EPFO). We can launch the scheme in 2017-18 after introduction of our online service like settling PF withdrawal claims by March-end," V P Joy, Central Provident Fund Commissioner of retirement fund body EPFO, told PTI.

Under the scheme, EPFO will be working as facilitator for its subscribers so that they can buy affordable homes for themselves during their service period. As of now, the body has no plans to buy land or build houses for its subscribers.

Previously, an EPFO appointed-panel had even suggested this scheme for the low income workers who already were EPFO subscribers but weren’t able to buy a house during their entire service period.

From now onwards, under the proposed scheme, there will be a tripartite agreement between member, bank, housing agency and EPFO so that they can pledge for future PF contributions as EMI payment.

Last year, the proposal was listed on the agenda of the CBT meeting held on September 16 to facilitate the EPFO subscribers to buy low cost homes.

At present, the committee has collectively suggested a scheme to facilitate subscribers to buy houses where they will get advance payment from their PF accumulation. They then will be allowed to pledge their future PF contribution as EMI payment.

The subscribers will then be able to purchase a dwelling unit with loans from bank or housing finance companies.

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