EPFO Scheme Helpful to Buyers and Real Estate Builders

by Ajay Singh marketing executive

It's a known fact that buying a home, especially in a metropolitan city, is one of the most intimidating things in life. From selecting your kind of property developed by a renowned real estate developer in India to making down payments and paying regular EMIs for the home loan taken, purchasing a residence is a never-ending long-term financial process. No matter if you've settled for a budgeted home, the erraticness of buying it too involves huge invigorations and efforts - arranging funds even for making the down payment. Buy real estate Flats in Yamuna Expressway with modern facilities. Purchase commercial shops in Artha Mart , Trident Embassy Reso and Civitech Strings where are available also nice looking residential apartments.


Be happy! A silver lining is dawning the sky. Having your dream house in India will soon get simpler and easier for everyone.


The EPFO Scheme

In order to make it easy and convenient for the people of India to buy homes in the nation, Employee's Provident Fund Organization (EPFO) recently brought forth a proposal to the Labour Ministry seeking the addition of a new clause in 68BD for group financing scheme. The new plan will help members to utilize their provident fund in saving money for their dream home. At the same time, there's an exception applied to the scheme - they must make a cooperative housing society of about 10 or more employees to avail the profits of the scheme. The member will not only be permitted to use 90% of their savings for purchasing homes but will also be allowed to make payments of their EMIs against a home loan taken.


Benefits of EPFO Scheme

Down Payments

Most real estate builders ask for a hefty down payment. Arranging funds can be a daunting task. For this, the EPFO extends power to its 50 million subscribers to use their savings in purchasing the home of their dreams in the most convenience driven manner.


Cheap Home Loans

The prevailing norms do not allow buyers and investors to link their loan applications with their PF account. Employees can only withdraw savings equating to approximately 36 months of salary for paying their home loans that too post completion of 10 years of their service. To help general public get cheaper housing loans, EPFO has announced that it is planning to tie knots with financial intuitions which will aid in changing the current scenario. Real estate developers in Delhi NCR and those operating in other cities will also be beneficial.



Post down payment comes to the task of making monthly EMIS. It's the hardest part for those living in rented apartments and is waiting for the possession of their flats. Here, EPFOs new scheme brings some relief to their doorstep.


Home buyers can now utilize their provident fund money for making EMI payments. However, they need to sign a tripartite agreement. In this, the agreement is signed by the EPFO, the bank, and the home buyer. Once you become a subscriber, you get the leverage of withdrawing money from the account for making the EMI payments.



In addition to purchasing a home using the PF money, employees who have serviced for 10 years can also use PF savings for home repair purposes. However, this scheme is only applicable for homes which a minimum of five years old.


All in all, no matter if you're a home buyer or a hot-shot real estate developer in Noida, with EPFOs proposed scheme everyone will be in a win-win situation.

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About Ajay Singh Advanced   marketing executive

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Joined APSense since, November 27th, 2020, From Delhi, India.

Created on May 19th 2021 02:14. Viewed 257 times.


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