Low cost housing for Provident Fund subscribers
Posted on: 05/Jan/2015 3:22:54 PM
The Employees’ Provident Fund Organisation (EPFO) has planned to assist the subscribers in buying houses.
A detailed plan has been drafted and submitted to the experts’ committee for approval.
EPFO has more than 5 Crores subscribers.
EPFO is administering their funds of over Rs, 6.5 Lakh Crores.
Most of the PF subscribers belong to the low-income earning group.
In fact, 70% of the PF subscribers earn monthly salary below Rs. 15000/-.
The ministry for employees’ welfare decided that this project of loan assistance from Employees provident Fund to exclusively answer the needs of this low-income group.
EPFO will be handling this project operating jointly with other government corporations like National Construction Corporation, DDA, PUDA, and HIDA in different states. It is expected that low cost housing would be feasible through this set-up.
Arrangements are made to pay the EMI (Equated Monthly Instalments) from the PF account. This has been recommended by the ministry of labour as well. This ministry has also promised to provide subsidies on this front.
The PF subscribers will be categorised into 3 groups – low income group, medium income group, and high income group and the housing loan scheme will be based on these categories.
The circle of officials from the ministry of labour is confident that this plan will provide for a peaceful & secured life after retirement.
