Subsidy to Employee Provident Fund(EPF) Members for Pradhan Mantri Aawas Yojana (PMAY)
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
UNSTARRED QUESTION NO: 181
ANSWERED ON: 17.07.2017
Subsidy to EPF Members for PMAY
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:-
(a) whether the Employees Provident Fund Organisation proposes to provide credit linked subsidy to its members for purchase of affordable homes under Pradhan Mantri Aawas Yojana and if so, the details thereof;
(b)whether the EPFO has also entered into agreement with Housing and Urban Development Corporation (HUDCO) in this regard; and
(c)if so, the details thereof along with the financial implication estimated by the Government for this purpose?
MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI BANDARU DATTATREYA)
(a): The Government has introduced paragraph 68BD in Employees’ Provident Funds (EPF) Scheme, 1952 for withdrawal from the Fund, for purchasing dwelling house or flat or construction of a dwelling house. Members can also avail of Equated Monthly Installment (EMI) facility to repay the loan taken from the financial institutions for purchase of a house.
Eligible Employees’ Provident Fund (EPF) members can avail of Credit Linked Subsidy for purchase of affordable homes under Pradhan Mantri Awas Yojana (PMAY) which is provided by the Ministry of Housing & Urban Affairs through its nodal agencies including Housing and Urban Development Corporation Limited (HUDCO).
(b) & (c): Yes, Madam. The main features of the Memorandum of Understanding (MoU) are as under:-
i) HUDCO and Central Board of Trustees (CBT), Employees’ Provident Fund (EPF) shall jointly disseminate information to Provident Fund (PF) members regarding Credit Linked Subsidy Scheme benefits under PMAY and housing related provisions of Employees’ Provident Funds (EPF) Scheme, 1952.
ii) HUDCO shall make housing loans available to the eligible members of Employees’ Provident Fund Organisation (EPFO) for buying the housing units/flats.
iii) EPFO shall create awareness amongst PF members.
iv) EPFO shall provide all the relevant details of the PF member borrowers to HUDCO on the request of PF members.
v) PF member can authorize Commissioner to make monthly withdrawal of the amount for payments of EMI.
The financial implication would depend on applications made by EPF Members to avail benefit under the Schemes.