PF Body To Consider Housing Scheme For Members Next Month: Report

New Delhi: The personnel‘ Provident Fund employer (EPFO) is running on a proposal to provide low feehousing to its extra than 5 crore subscribers.

“The EPFO is working on the notion to offer low fee housing to its subscribers, which will arise fordiscussion inside the meeting of its trustees anticipated someday subsequent month,” a source said.

earlier this month, Labour Minister Bandaru Dattatreya had inside the Lok Sabha said the government is exploring the opportunity for providing a suitable low value housing scheme for personnel‘ Pension Fund subscribers.

He changed into replying to a question whether or not the authorities or the retirement fund frame havedelivered/proposes to introduce a scheme to permit its subscribers to pledge their future PF contributions to buy low price houses.

last year, the inspiration become additionally on the schedule of EPFO’s trustees assembly hung onSeptember sixteen.

A report of an professional committee on housing facility for the subscribers become also offered to the trustees for his or her perusal.

The committee had unanimously advocated a scheme to facilitate subscribers to shop for homes in whichthey’ll get an develop from their PF accumulation and could be allowed to pledge their destiny PF contribution as EMI (equated monthly instalment) charge.

underneath the proposed scheme, there could be a tripartite agreement with EPFO, the member and thebank/housing employer for pledging future PF contributions as EMI bills.

The panel had advised that the subscribers will purchase a residing unit with loans from financial institution or housing finance groups and hypothecation of property in favour of the latter.

however, the panel had cautioned this scheme for those EPFO subscribers who are low earnings formalpeople and could not purchase a residence throughout their entire carrier duration.