PM Narendra Modi has announced that now employees working in organized sectors will be able to buy house. This provision has been issued in Gazette Notification & has been implemented from 12th April 2017. This decision will avail benefits to 4 crore members of EPFO.
What is EPFO Housing Scheme?
EPF members can buy new house by using their 90% PF (Provident Fund). Around 4 crore EPFO members will be facilitated to buy a new house. They can pay their monthly EMI’s of their home loan by their monthly contribution. For this purpose Central Government has made an amendment in EPF Act 1952.
Eligibility for EPFO Housing Scheme
- To avail benefits of EPFO Housing Scheme an EPFO member will have to become a member of a society having 10 members, which has been constituted for Co-Operative or Housing purpose.
- Candidates who have been contributing for EPF (At least from 3 years) will be eligible to withdraw money out of PF under this housing scheme.
- Candidates who has not been contributing for PF at least 3 years will not be eligible to avail EPFO Housing Scheme.
- Any member can get benefit of this scheme only once & member having Rs. 20,000 or less in his/her bank account is not eligible.
Online Claim Settlement
Out of 122 regional offices of EPFO 110 offices had been connected to a central server & rest of offices will be linked soon. Main motive of these centers is to settle claims of PF members. Soon this online facility will be implemented within 2 months.
Subsidy under PMAY
In case annual income is less than the specified annual income limit by PMAY, then a subsidy in loan interest of Rs. 2.20 lakh will be given to them.
Pay Home loan from PF Account
Government has decided to provide an additional benefit to employees. Now they can pay their monthly EMI for home loan by using their PF Account.
Note: in case of expired membership of any member with EPFO & members does not have enough amount to pay his/her monthly EMI, then government will not be responsible to pay their EMI.