The Employees’ Provident Fund Organization (EPFO), India’s retirement fund manager has signed an agreement to aid its 10 lacs Employee Provident Fund (EPF) subscribers to buy or build homes over the next two years. EPFO has also signed an agreement with Housing and Urban Development Corp. Ltd (Hudco) to facilitate Rs 2.67 lacs housing subsidy to members. 

The Memorandum of Understanding (MoU) was signed by EPFO's Central Provident Fund Commissioner V P Joy and HUDCO CMD M Ravi Kanth in the presence of Urban Development, Housing & Urban Poverty Alleviation Minister M Venkaiah Naidu and Labour Minister Bandaru Dattatreya for facilitating the scheme Housing for All by 2022. Bandaru Dattatreya was quoted in media saying, “We are aiming to help 10 lacs EPF subscribers build or buy homes in next two years. The agreement with Hudco is a step in that direction.”

Earlier reported in People Matters, The Employees’ Provident Fund Organisation (EPFO) has amended the scheme to allow its subscribers to withdraw up to 90% from their EPF accounts for purchasing a house or flat, construction of a house, acquisition of the site and even payment of Equated Monthly Instalments (EMIs).

According to this MoU, EPFO will allow its 1 million subscribers to withdraw up to 90 percent of their EPF accumulations to buy homes. Additionally, Hudco will aid eligible subscribers to get a credit-linked subsidy under the Pradhan Mantri Awas Scheme (PMAY). Anyone who is looking to purchase a house can get subsidies up to Rs.2.6 lacs in schemes for economically weaker sections as well as for lower- and middle-income groups.  Besides this, Hudco may also help connect EPF subscribers to its network of builders. Existing home loan takers can approach EPFO to get 90 percent of their PF collection for loan repayments and these subscribers will also fall into 10 lacs subscribers.