A memorandum of understanding (MoU) signed between the Employees’ Provident Fund Organisation (EPFO) and the Housing and Urban Development Corporation (HUDCO), will club the benefits of the housing scheme introduced by the EPFO for its subscribers and the Pradhan Mantri Awas Yojana (PMAY).
The MoU, which was inked on June 22, 2017, by the retirement fund body’s central provident fund commissioner VP Joy and HUDCO CMD M Ravi Kanth, will enable EPFO members to avail of the credit-linked subsidy of up to Rs 2.67 lakhs, for buying affordable homes under the PMAY.
The pact was inked in the presence of Urban Development, Housing & Urban Poverty Alleviation Minister M Venkaiah Naidu and Labour Minister Bandaru Dattatreya, for facilitating ‘Housing for All by 2022’.
Under its housing scheme, the EPFO allows its subscribers from societies to withdraw up to 90 per cent of their EPF accumulations, to buy homes. In April 2017, the EPFO had amended the EPF Scheme, to enable its subscribers make down payments to buy homes and pay EMIs through the EPF account.
The labour ministry intends to facilitate at least 10 lakh subscribers in the next two years, by allowing them to use 90 per cent of their EPF accumulations, to make down payments to buy houses and use their accounts for paying off EMIs of home loans. Under the PMAY, the beneficiaries are provided credit-linked subsidy, based on their income levels, so that the dream of ‘Housing for All by 2022’ can be realised. The HUDCO is a nodal agency for implementation of the credit-linked subsidy scheme, for middle and lower-income groups and the economically weaker sections, under the PMAY.