Retirement fund body Employees’ Provident Fund Organisation (EPFO) will sign on treaty with the Housing and Urban Development Corp (HUDCO) to empower members of its housing scheme to avail subsidy and interest allowance under the Pradhan Mantri Awas Yojana.
EPFO lets on its subscribers from societies for withdrawing up to 90% of their EPF accumulation for home purchase. As a part of goverment’s ambitious project ‘housing for all by 2022’ the EPFO has signed a Memorandum of Understanding (MoU) with HUDCO on June 22, 2017 as per the official source. The released statement also confirmed that the MoU will be ink pact in the presence of Labour Minister Bandaru Dattatreya and Housing & Urban Poverty Alleviation Minister M Venkaiah Naidu. This agreement is related to coverage of EPSO subscribers under PMAY by offering them several benefits including cheaper loans for home purchasing purpose.
According to the official statement EPFO won’t be directly involved in the construction process of the buildings for its subscribers, rather than it will be working as a catalyst so that the members can easily come into the purchase process. The labour ministry proposed to simplify the homebuying for at least 10 lakh subscribers in the next two years by allowing them to use 90 per cent of EPF accumulations for down payments purpose of their home purchase and use their accounts for repaying of home loans.
Earlier on during April 2017, EPFO released its notification in the public domain and media where they introduced the amended version of EPF scheme. It approved the subscribers for making their down payments for buying home and payment of EMI through the EPF account. The withdrawal scheme will be brought into the line with the Urban Development Ministry (programmes) and other organizations because the Union government is also giving subsidy of 1.5 lac to the socio-economically weaker section. All these benefits will be merged together to make affordable housing sector an attractive stratum of investment. EPFO has also launched Aadhar seeding application for the optimization of the reach of EPF benefits. In the collaboration with (CSC) Common Service Centers and CDAC EPFO has developed this Aadhaar seeding. EPFO has decided not to collect Administrative charges towards EDLI contributions.
According to the EPFO notification of March 2017 the new rate of PF contribution will be as follows-
| EPF | EPS | EDLI | EPF
Admin charges |
Total | |
| Employer | 3.67% | 8.33% | 0.05% | 0.65% | 13.15% |
| Employee | 12% | 0% | 0% | 0% | 12% |
Elderly people who are willing to move into metro cities like Kolkata, rather than choosing a rental apartment to reside, go for low budget flats in Kolkata on the purchase of which you can avail all these major competences along with the goverment’s assurance. Utilize this optimum benefits to buy property in Kolkata and other major cities of the country.
–LNN (Liyans News Network)