Starting Next Year, Pledge your PF to Buy Affordable Homes
Apr 04, 2017 Legal Guidance
It is every working person’s dream to buy a house of his own at some point in his life. The time required arranging the required funds in order to purchase a property delays this particular dream in most cases. However, there has been a good news in this regard to potential home buyers. In order to help the home buyers raise necessary funds and repay loans for purchasing properties, the Employees’ Provident Fund Organisation (EPFO) has been working on a housing scheme off late. Under this particular housing scheme, the EPFO subscribers will be given the privilege of pledging their provident funds to purchase homes and also pay their Home Loan EMIs through their PF accounts.
So let us discuss more about the Housing Scheme as drafted by EPFO:
EPF account for buying Home and repaying home loans:
Under the housing scheme being drafted by the Employees’ Provident Fund Organisation, more than four crore subscribers of EPFO can make use of their funds accumulated in PF accounts to buy properties and to pay home loan EMIs. As per the statement was given by EPFO’s central provident fund commissioner, Mr. VP Joy, the said housing scheme will be most probably launched in the next financial year (2017-18). The housing scheme was proposed during the last financial year’s CBT meeting. It was felt a necessity by EPFO to facilitate its subscribers to buy affordable homes. After several considerations by the concerned authorities, the committee came up with a scheme that will enable EPF account holders to get an advance from their respective PF accounts in order to buy budget homes.
Under the proposed housing scheme, EPFO aims to enact the role of a facilitator for its subscribers in order to help them to purchase affordable homes during their service period. As per the proposed draft, there will exist an agreement between the EPFO, the subscriber, and the lending institution. Under this agreement, the subscriber will pledge his future PF contributions as EMI payment against Home loan procured. Moreover, EPFO is planning to extend the benefits under the scheme of the Ministry of Housing and Urban Poverty Alleviation, to the beneficiaries of the scheme.
The proposed housing scheme by the EPFO is welcoming for millions of EPF account holders. With the arrangement of margin money as well as repayment home loans a major concern for most of the people, the said scheme definitely raises a ray of hope for home buyers in order to fulfill their dreams of buying a home.
So let us discuss more about the Housing Scheme as drafted by EPFO:
EPF account for buying Home and repaying home loans:
Under the housing scheme being drafted by the Employees’ Provident Fund Organisation, more than four crore subscribers of EPFO can make use of their funds accumulated in PF accounts to buy properties and to pay home loan EMIs. As per the statement was given by EPFO’s central provident fund commissioner, Mr. VP Joy, the said housing scheme will be most probably launched in the next financial year (2017-18). The housing scheme was proposed during the last financial year’s CBT meeting. It was felt a necessity by EPFO to facilitate its subscribers to buy affordable homes. After several considerations by the concerned authorities, the committee came up with a scheme that will enable EPF account holders to get an advance from their respective PF accounts in order to buy budget homes.
Under the proposed housing scheme, EPFO aims to enact the role of a facilitator for its subscribers in order to help them to purchase affordable homes during their service period. As per the proposed draft, there will exist an agreement between the EPFO, the subscriber, and the lending institution. Under this agreement, the subscriber will pledge his future PF contributions as EMI payment against Home loan procured. Moreover, EPFO is planning to extend the benefits under the scheme of the Ministry of Housing and Urban Poverty Alleviation, to the beneficiaries of the scheme.
The proposed housing scheme by the EPFO is welcoming for millions of EPF account holders. With the arrangement of margin money as well as repayment home loans a major concern for most of the people, the said scheme definitely raises a ray of hope for home buyers in order to fulfill their dreams of buying a home.
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