Retirement fund body EPFO has launched a housing scheme for its over four crore members to enable them to make down payment and pay EMIs from their EPF accounts to buy homes.
“Under the scheme, the EPFO will act as a facilitator for its subscribers to buy homes for themselves during their service period,” a source said.
The subscribers as well as their employers would be required to form a group housing society which would further tie up with banks and builders, he said. Under the scheme it is envisaged that there should be 20 members at least in the group housing society to avail the facility.
The scheme will also help the formal sector workers proving their credit worthiness as the EPFO would provide a certificate indicating the subscribers’ paying capacity and ability to repay loans.