Amendment in EPF scheme for buying homes

Amendment in EPF scheme for buying homes

GOVERNMENT OF INDIA

MINISTRY OF LABOUR AND EMPLOYMENT

RAJYA SABHA

UNSTARRED QUESTION NO-1056

ANSWERED ON-27.12.2017

Amendment in EPF scheme for buying homes

1056 . Shri R. Vaithilingam

(a)whether Government will amend the Employees” Provident Fund (EPF) scheme to enable around 4 crore members of Employees” Provident Fund Organisation (EPFO) to withdraw upto 90 per cent of their fund for making down payments while buying houses;
(b)whether said amendment will also allow the EPFO subscribers to use their EPF accounts for paying equated monthly installments of home loans; and
(c)whether under the proposed provision in the EPF scheme, the subscribers would have to form a cooperative society with at least 10 members to avail of the facility?

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT

(SHRI SANTOSH KUMAR GANGWAR)

(a) to (c): The Government vide Notification No. G.S.R.351 (E) dated 12th April, 2017 has inserted a paragraph 68BD in Employees’ Provident Funds (EPF) Scheme, 1952 for withdrawal from the Employees’ Provident Fund (EPF) for purchasing dwelling house or flat or construction of a dwelling house.

The withdrawal amount from the Provident Fund shall not exceed ninety per cent of the employer’s share of contribution and interest thereon and employee’s share of contribution and interest thereon.

The Scheme envisages that a member can authorise monthly installment for the repayment, wholly or partly, of any outstanding principal or interest of a loan obtained in the name of the member or spouse of the member or jointly by the member and the spouse.
The payment can be made on behalf of the member to a housing agency or primary lending agency or bank concerned, etc.

The subscriber should be a member of a cooperative society or a society registered for housing purpose under any law for the time being in force and such society has at least ten members of the Fund.