New housing scheme by EPFO to benefit over 4 crore members

By : Silky Malhotra

27 February, 2017

Employees' Provident Fund Organisation (EFPO) will launch a new housing scheme in March 2017 that will benefit over 4 crore members, according to reports. The new scheme will enable members of the EPFO to make down payments as well as EMI’s from their Provident Fund accounts to buy homes.

The scheme is a part of the initiative launched by Prime Minister Narendra Modi’s ‘Housing for All’ by 2022. The scheme envisions a slum-free India by 2022. Under the new scheme by EPFO, employers along with subscribers will have to form a group housing scheme that should have at least 20 members. Once they form a society they can tie up with various builders and banks so that the members of EFPO can buy homes.

The program will also help home buyers establish their creditworthiness, as EPFO will also provide a certificate to prove their loan paying ability.

The report added that, in case there are any disputes, the retirement body will not be a party to the legal battle and the group housing society will have to settle any legal dispute themselves with the buyer or banker or builder. EPFO will retain the right to stop any down payments or loan EMI upon receiving a request from the head of the group housing society. The retirement body is expected to launch the scheme after March 8.

According to sources aware about the initiative, "The Employees' Provident Fund Organisation (EPFO) has firmed up a housing scheme for it subscribers. The scheme is likely to be launched anytime after March 8 when voting in five poll-bound states would be over. Under the scheme, the EPFO will act as a facilitator for its subscribers to buy homes for themselves during their service period”.

Users will also be able to avail additional benefits, from the centre as well states, like Pradhan Mantri Awas Yojana as a part of the EPFO initiative. The Pradhan Mantri Awas Yojana, which was launched in June 2015 by the BJP government aims to create 2 crore houses by 2022, with a central grant of INR 1 Lakh to INR 2.3 Lakhs. The additional support by the EPFO will make this plan of Housing for everyone a reality.

Employee Provident Fund employee benefits in real estate will be landmark, as the scheme will prove to be a boon to the Indian real estate sector. It will enable home buyers to buy their dream home with ease. Many buyers are unable to buy homes, due to a cash crunch; the additional availability of funds under the new program will make the dream of buying their own homes for crores of buyers a reality in the country!