Soon you can buy your dream home with your PF—like literally!

If you had been planning to invest in the property market but couldn’t because of financial constraints then here is a good news. The Employees' Provident Fund Organisation (EPFO) is going to allow its subscribers to pledge their future PF contributions to buy a low-cost house. This new scheme will facilitate subscribers to buy houses where they will get an advance from their PF accumulation and pledge their future PF contribution as EMI (Equated Monthly Instalment) payment.

EPFO trustees, apex decision making body and the Central Board of Trustees (CBT) will discuss the proposal in a meeting which is scheduled on 16th September, revealed an Economic Times report. The proposed scheme would work after a tripartite agreement gets signed by the member, bank/housing agency and EPFO for pledging future PF contributions as EMI payment.

The panel suggested that under the scheme, the subscribers will purchase a dwelling unit with loans from bank or housing finance companies and hypothecation of property in favor of the latter. The benefits under the schemes of Ministry of Housing and Urban Poverty Alleviation will also be extended to the beneficiaries of the scheme.

However, the panel suggests that this scheme should be open for low-income formal workers, who are EPFO subscribers, only.

Besides, the CBT headed by the Labour Minister will also take up the proposal to increase the maximum sum assured under its insurance scheme EDLI to Rs 5.5 lakh from existing Rs 3.6 lakh. The proposal will be vetted by a sub-committee tomorrow for making final recommendations to the CBT.

The trustees will also consider a proposal to provide incentives to EPFO pensioners for digitally filing their live certificates which, at present are filled manually.

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