Bandaru Dattatreya, Labour Minister, has made it clear on Monday that EPFO (Employees’ Provident Fund Organization) is not going to construct the houses for its four crore members, but is only going to expedite the process of buying homes for them.
The subscribers are going to be supported by the Labour Ministry in the coming two years by giving them the provision to utilize 90% of their EPF savings. They can use this 90% savings to make the down payment while buying houses and also, their EPF accounts can be linked to pay the EMIs of the home loan borrowed.
As far the housing is concerned, EPFO declared that it is not responsible for the construction of houses and that the subscribers are completely responsible for it.
This recent change in the EPF scheme 1952 is to support and encourage its members to buy homes. Most importantly, the scheme works towards fulfilling the Prime Minister’s vision of Housing for All by 2022.
Earlier, it was rumoured that EPFO is planning to construct 10 lakhs homes for its subscribers in the coming two years and also that the organization would get collaborated with Ministry of Urban Development for the same.
As per announcement by Labour Minister, the scheme is applicable for the subscribers whose monthly basic salary is below Rs.15000.
The government is giving the interest subsidy to few sections of the society support them in buying home, therefore all these provisions and advantages can be teamed up together.