What is EPFO Housing Scheme for subscribers?
The full form of EPFO is the Provident Fund Organization. The organization is related to the Employee Provident Fund association and they have together, with the cooperation of the central government has launched the EPFO housing scheme. The scheme will assist the people who have active EPF accounts in acquiring their own homes in easy payments. The scheme has been implemented in the month of March, 2017. BJP Central Government has also implemented PM Awas Yojana for all.
Eligibility for EPFO housing scheme
The first thing that you need to apply under the scheme is to have an Employee Provident Fund account. Without this account, the subscribers will not be able to avail the advantages of the scheme. They also need to get access to their Universal Account Number and have their Aadhar code properly seeded with the respective accounts and other official documents.
Key Features about EPFO housing scheme
If you have any doubts then the following features will assist in giving you a clear understanding:
- With the launch of the scheme, the benefit of availing the credit for making the purchase of the house will be easy. According to reports, around 4 crore members have their accounts under the EPF scheme. All these members will be allowed to take advantage of the housing scheme.
- According to the guidelines highlighted in the draft of the scheme, the EPFO will play the part of the facilitator. The organization will oversee all the activities and monitor the loan and the EMI facilities.
- The account holders who want to get a home for themselves under the scheme will be able to avail the loan facility and withdraw a lump sum amount for investing in the low cost housing schemes.
- The account holders will be able to pay the cost of purchasing the home on a monthly basis as well. Their EMI will be directly deducted from the EPF account. Thus, they will not have to worry about remembering the EMI payment dates.
- To avail the benefits of the scheme, the employers and the EPF account holders will have to form an assembly of housing society. This group must comprise of at least 20 members. Only then the benefits will be made available to the applicants.
- The members of the group will have to get in touch with the banks and make necessary arrangements for availing the housing credit facilities. They will also have to discuss with the sellers or builders of homes.
- All the housing societies, which will be constructed under the scheme, will be available to the members of the EPFO. These flats or homes will not be available to the outsiders. Having an EPF account is a must.
- If the interested candidate wants to buy the home by availing the benefits of the scheme then they will not be allowed to invest in any other real estate property as long as they remain in service.
- Clubbing the other central government scheme like the PM Awas Scheme is also possible. The main aim of doing was to ensure that all people get the opportunity of getting their own homes at low prices.
- The EPFO will also provide the subscribers with official documents that will have all the details about the income of the subscriber and his/her ability of paying the loan back in time.
- If any rift of tussle arises between the members of the housing association and the bank or the builders, then the EPFO will not play any role in solving the issues. The EPFO will stay out of any legal battles.
- If and when any legal issues occur, EPFO can cease to make the down payments or the monthly payment. For this, the executive head of the respective housing society must submit a formal request.
- All negotiations, related to the loan amount and the price of the housing will have to be settled by the member of the accommodation society with the banks and the builders or sellers respectively.
Uttar Pradesh Government has started two housing scheme you can read Key Features of UP Free Housing Scheme and the Key Features Of Bakshi Talab Yojana In UP.
Loan Amount In EPFO housing scheme
Any member who has an EPF account will be able to apply for the loan. According the guidelines highlighted in the scheme, any subscriber will be able to withdraw around 90% of the amount that will get accumulated in the account, for the entire tenure of service.
Mode of Payment In EPFO housing scheme
All the payment will be done directly from the EPF account. If the account holder is making the down payment for purchasing the home or flat, then they will be able to withdraw the sum in liquid cash form. For making the payment in the EMI format, the person will be able to transfer the amount directly from the account.
Repayment Facility In EPFO housing scheme
For making the repayment, the person will have to deposit a certain percentage into the EPF account during the rest of the service tenure. The deductions will be made on a monthly basis.
Implementation or Starting Dates
The official announcement about the scheme was made in the middle of February. The first step for providing low cost homes to the people was announced by the government in the year 2014.
With the successful implementation of the scheme, the central government will be able to fulfill the promises that it made to the people regarding providing homes to all. As the money will be paid from the EPF accounts, the subscriber will not have to worry about arrangement of cash or shelling out a huge amount at a single go.
Kerala Government has also announced shelter for fishermen under the flag of Coastal Housing Scheme in Kerala Fisheries Department