EPFO Housing Scheme


Central government has again come up with another initiative to encourage Pradhan Mantri Awas Yojana, housing for all. The Modi government has stated a new housing scheme for the retired people of the nation. People who are working under state or central government will be now able to buy own houses using this scheme. According to the scheme, Employees’ Provident Fund Organisation aka EPFO will initiate the scheme soon in next month.

EPFO Housing Scheme

EPFO Housing Scheme – Features

  • The housing scheme launching by EPFO is a part of Pradhan Mantri Awas Yojana, Housing for all. By implementing this scheme the government will accommodate all the retired people their permanent houses.
  • The scheme will be launched in the month of March. The tentative date is set as sometimes after 8th of March. It will be officially launched after the election poll that takes place in 5 states.
  • EPFO Housing scheme will be a cooperative housing scheme where many people need to be involved. At least 20 people (including employers and employees) must be included in one group to subscribe for this scheme.
  • This scheme will be funded by state as well as central government. Most of rules are same as PMAY, housing for all scheme. EPFO will be a medium that will let the buyer and banks to negotiate.
  • The scheme will be available only for the EPFO members. Any sort of members, either lower grade pensioner or high grade officers, will be eligible to subscribe for the scheme.

EPFO Housing Scheme – Process and Loans

  • EPFO will negotiate with the banks from which the member can take the housing loans. During their service members can subscribe for the scheme and pay the loan.
  • Respective states will track the reports on whether the applicant is able to repay the loan or afford to avail the scheme or not. Depending on that report the loan will be sanctioned to the applicants.
  • As mentioned it will be cooperative housing scheme so 20 people are needed to subscribe and apply for the loan. They can choose any of the listed banks under EPFO for the loan.
  • EPFO will negotiate with the banks, sellers of the houses and builders as a medium. The main agreement will take place between the buyer and the bank, builder or seller of the property.

EPFO – Rules for Housing Scheme

  • It has been said that before sanctioning of the loan state will cross check the background of the employees and the employers. However according to the rules if any dispute happens regarding repay of loan or EMI related issues, then EPFO will not responsible for that.
  • On the other if banks or the builders or sellers of the property are found to be disputed at any stage of the scheme, EPFO will not take any responsibility of that. The buyer and the builder or banks are required to solve the issue with each other.
  • However if EPFO has the power to stop the EMI at any stage if the authority finds out any dispute on builders’ or bankers’ side. This can be happened at any point of time during the scheme implementation.
  • EPFO will also provide a certificate to all the formal sector employees as well stating their capacity and ability. By capacity and ability it means that whether the subscribe is able to repay the loan or not.

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