Affordable housing scheme for EPFO subscribers in the works
As the NDA Govt. has set a mission to provide housing for everyone in this country, be rich, be poor, by the end of 2022, it has launched a project to provide housing solutions to the subscribers of the EPFO. This is a very huge housing project so far as it will be beneficial to nearly 5 crore subscribers of the EPFO. This mass housing project will be governed and administered under joint operation of Ministry of Labour and Ministry of Housing, Govt. of India.
Target group of the EPFO subscribers to get housing under this project
As per the reports of Ministry of Housing, initially the Govt. is concentrating on providing housing to the EPFO subscribers who fall under the low income group. As per data of Ministry of Housing, more than 70 per cent of the subscribers of EPFO are under the low income category. This means their monthly income is below Rs. 15,000.The Govt. wants those subscribers to have good housing facilities in the next couple of years and provide them financial support for providing them these affordable houses under this mass project. Several financial institutes, banks and housing boards are being collaborated for this housing project. After the housing development of low income groups, the mid – income groups and high – income groups of EPFO subscribers will be targeted.
Who will provide the affordable loans for housing of EPFO subscribers?
The Govt. has collaborated with several banks and financial institutions like India Bulls, PNB housing, etc. which will provide low interest and affordable home loans for the housing project. Also the housing boards, both Govt. and public bodies like the DDA, HUDA, etc. will be responsible for providing the affordable houses under this project. The home loans under this housing scheme will have easy schemes of EMIs with long repay period for the low income subscribers of the EPFO.
Using the EPF account for EMI payment of housing
An important decision regarding the payment of monthly instalments for the housing loan has been taken by the Ministry of Housing. Under this affordable housing scheme for the EPFO subscribers, the beneficiaries can use their EPF accumulated fund to pay the monthly instalments. This provision will ease off their financial burden and they can pay the EMIs very easily. As of now, the EPFO subscribers could only withdraw their PF funds upon maturity or as loans for houses or personal loans. The EPF accounts will be directly linked with the housing project and the monthly instalments will be automatically debited from the beneficiary’s EPF account.
Important data regarding EPFO housing for its subscribers:
|Sl. No.||Scheme fields||Relevant information|
|1||Name of Scheme||Affordable housing for EPFO subscribers|
|2||Target group||Low income groups of EPFO subscribers with monthly income of Rs. 15,000|
|3||No. of beneficiaries||5 crore|
|4||Payment mode for EMI||Auto debit process from EPF accounts|
Allocation of funds for the EPFO housing project
The Govt. has decided to generate some extra corpus for this mass housing project from the EPFO funds. As per calculations of the Housing Ministry, if 15 per cent of the total funds of EPFO are allocated for this housing project, then also a corpus of Rs. 70,000 crore will be created. This corpus can help in building more than 3.5 lakh affordable houses for the EPFO subscribers under this housing project. As of now, the total corpus of EPFO stands at Rs. 6.5 lakh crore.
No extra homes for beneficiaries of affordable housing for EPFO subscribers
But the central govt. has also indicated that once the homes are allocated to the subscribers of EPFO under this affordable housing project, they cannot buy any other houses while they are in the service. Also those subscribers who are in possession of Govt. housing will not get these low cost houses under this scheme.
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