EPFO Group Housing Scheme
The Employees Provident Fund Organization (EPFO) has started EPFO Group Housing Scheme. Under this scheme, active members of EPFO can utilize the 90% of the PF deposits for buying the house, constructing the house and buying plots. The amount which will be left will be able to take as much loan, but for this, a society of at least 10 members will have to be created.
What is EPFO Group Housing Scheme
A subsidy of up to Rs 2 lakh 20 thousand rupees will be available on this loan. If money is saved from the expense, then it will have to be deposited back. There is 2 lakh 30 thousand active members in the EPFO office at Karnal. The notification of this scheme has been issued by the Central Government.
Loan will be Taken from Bank, EPFO will Pay Installments
The Contributor has to take this loan from any bank.The contributor will have to take the loan from the bank and the EPFO will pay the installments from its monthly contribution and premium.
For Example – A person has two lakh rupees in his PF account, then he will get Rs.1 lakh 80 thousand rupees according to 90%, while the plot he has bought is costed Rs 5 lakh, then EPFO will ask the person to take the loan of the remaining amount i.e. 3 lakh 20 thousand rupees from bank by taking his contribution in view. On getting the loan by the person from the bank, the EPFO will deposit the loan installment directly into the bank.
Necessary Terms to Become Eligible
Accounts of 10 members must be 3 years old and they must have deposited at least Rs. 20 thousand. There should not be house, or plot, in the name of any member of the member and his family. Plots-houses can not be bought in illegal colonies. The central government gave a special guideline that under the group housing scheme, PF members will not be able to purchase plots and houses in the illegal colonies. Under the scheme, houses and plots must be purchased from the valid housing loan agency, promoter and valid builder from the central government & state government.
Claim Settlement will be Online:
There are 122 Regional Offices of the Employees Provident Fund Organization across the country. Of these, approximately 110 officers have been linked to the central server, while the rest is going to be linked. After this, any PF member of any Region office can settle the claim for taking their money. This facility is likely to start in the coming 2 months. With this, the PF member will not need to come to another state during the job to get his PF in the same state.
Subsidy up to 2.20 lakhs on Loan Interest:
Under the Housing Scheme of the Employees Provident Fund Organization, any active members can withdraw 90 percent of their funds from their accounts for purchasing houses and plots. Loans can be taken when the amount is reduced. The subsidy will be given up to Rs 2 lakh 20 thousand on loan interest, but this PF member will not get the amount personally. For this, we have to create a society of at least 10 members.
News Source: http://www.bhaskar.com/news/HAR-PAN-HMU-epfo-launched-group-housing-scheme-5582684-NOR.html