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Retirement fund body, EPFO, on Thursday signed a memorandum of understanding with Hudco to facilitate its four crore subscribers to withdraw 90 per cent of their PF funds for housing purposes, as also pay the loans back in instalments.
“About 10 lakh houses can be constructed in two years after the signing of this MoU,” Labour Minister Bandaru Dattareya told reporters. The MoU was signed by VP Joy, Central Provident Fund Commissioner, and M Ravi Kanth, CMD, Hudco, in the presence of Minister of Urban Development, Housing & Urban Poverty Alleviation, M. Venkaiah Naidu and the Labour Minister.
Declaring the scheme as part of the Prime Minister’s aim to provide ‘Housing for All by 2022’, Naidu said: “Allowing 90 per cent withdrawal from the PF for housing is a positive and progressive step.” Under the scheme, which was notified on April 12, 2017, subscribers to the Employees Provident Fund Organisation (EPFO) can apply individually or jointly through a housing society for a loan through any primary lending institution (PLI), including Hudco Niwas. However, land for the housing would have to be acquired by the respective States.
“The respective bank/PLI can then claim credit–linked subsidy up to ₹2.67 lakh,” depending upon the category of the house, EPFO said. This facility is also available for existing housing loans, a senior EPFO official said.
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