As per a leading daily, the EPFO has been reported to prepare a draft housing scheme for its EPF a/c holders. And as per the contours of the scheme, individual who so far have not booked a house in their name will be able to do so and that too a competitively priced house, provided they are an EPF member for 3 years now.
The plan is to be submitted to the CBT or Central Board by Trustees in its next meeting scheduled in December and after the scheme receives a go-ahead, the provident fund organization will begin its work on the housing project.
A national housing association will be set-up as per the plan and land will be required at a discount and builders will be contacted to then take up the various housing projects. In accordance with the report, the government is likely to come up with the EPFO housing scheme before the general assembly elections in 2019.
Proposals made in EPFO housing scheme
1. Only EPF subscribers will be able to benefit from the scheme plus those who already have a house in their name cannot take benefit of the scheme.
2. The organization allows EPF member to withdraw a maximum of 90% of their EPF balance to buy the house.
3. Loan to pay for the house can be availed against the PPF a/c. Also, EMIs can be paid from the EPF account.
Also, as a latest subscriber-friendly move, the EPFO allowed 75% withdrawal against EPF a/c after one month of losing a job.