EPFO to start housing scheme for members in March

NEW DELHI: Retirement fund body EPFO will launch a housing scheme next month for its over four crore members to enable them to make down payment and pay EMIs from their EPF accounts to buy homes.

“The scheme is likely to be launched anytime after March 8, when voting in five poll bound states would be over,” a source said. “Under the scheme, the EPFO will act as a facilitator for its subscribers to buy homes for themselves during their service period,” he added.

The subscribers as well as their employers would be required to form a group housing society which would further tie up with banks and builders or sellers of homes so that EPFOmembers can buy homes, he said. Under the scheme it is envisaged that there should be 20 members at least in the group housing society to avail the facility.

The source said that the subscribers would be allowed to club the benefits under various schemes of the centre as well states like Pradhan MantriAwasYojana under the EPFO initiative for furthering government’s aim of housing for all.

The scheme will also help the formal sector workers proving their credit worthiness as the EPFO would provide a certificate indicating the subscribers’ paying capacity.

The EPFO would not a party to legal battle and the group housing society would settle issues either with the banker or builder/ seller of the homes.

(source by:-The Economic Times)  

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