The Employees’ Provident Fund Organisation (EPFO) has set a target of helping one million of its account holders to build or buy homes over the next two years.
The EPFO on Thursday signed an agreement to help EPF subscribers get hassle-free housing loans. HUDCO will also help EPF subscribers avail subsidy under the central government schemes.
“We are aiming to help 10 lakh EPF subscribers build or buy homes in next two years. The agreement with HUDCO is a step in that direction,”
The agreement states, “HUDCO shall make housing loans available to the eligible members of EPF for buying the housing units/flats through HUDCO Niwas, HUDCO’s retail financing window as per their eligibility.”
“PF members will remain liable for repayment of loan…a s a member-borrower of HUDCO,” according to the agreement.
The labour ministry-controlled EPFO will pledge to give the monthly contribution of subscribers towards payment of equated monthly installments (EMIs) of home loans. The EPFO will give 90% of the accumulated PF corpus of a member to HUDCO.
The EPFO will also provide the relevant details of its subscriber borrowers to HUDCO, such as that of existing deductions and their available provident fund (PF) corpus.
A member prospectively buying a house can get subsidies up to Rs 2.67 lakh in schemes for economically-weaker sections as well as for lower- and middle-income groups. Credit-linked subsidies under the Pradhan Mantri Awas Scheme can also be availed with the facilitation of HUDCO.
Existing home loan takers can also approach EPFO for getting 90 percent of their PF corpus for loan repayments and these subscribers will also fall under the one million target.