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Housing News

EPFO Members to Get Subsidy of Rs. 2.67 lakh – PM Awas Yojana

Government has announced to provide subsidy in interest of home loan of upto Rs. 2.67 lakh for applicants of PMAY (Pradhan Mantri Awas Yojana). This provision has been issued in Gazette Notification & has been implemented on 12 April 2017. EPFO (Employees Provident Fund Organization) has associated with HUDCO (Housing & Urban Development Corporation) to provide convenience in getting subsidy on interest to EPFO Members.

EPFO Housing Scheme

As announced by government, employees working in organized sectors can use 90% of their total provident fund. Applicants will be able to pay their monthly EMI’s of their home loan by their monthly contribution.

A MoU (Memorandum of Understanding) has been signed between Commissioner of Central Provident Fund V.P. Joy & Chairman & Managing Director of HUDCO M. Ravikant to make affordable houses easily available for needy people.

According to the EPFO notification of March 2017, the new rate of PF contribution will be as follows:

EPF Details
EPF Details

EPFO Members can buy affordable house under PMAY by using 90% amount of their provident fund.
Authority has decided to provide interest subsidy according to candidates income level.

Source: https://khabar.ndtv.com/news/business/epfo-to-help-subscribers-purchase-houses-1715919

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Housing News

EPFO Housing Scheme Launched for PF Members

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.

Source: http://money.bhaskar.com/news/MON-PERS-PFB-you-can-withdraw-90-percent-amount-to-buy-house-business-news-hindi-5580882-NOR.html