Lok Sabha Question No. 5602 (UNSTARRED), answered on 2018-04-02
Subject: Paying of Housing Loan by EPFO
Ministry: LABOUR AND EMPLOYMENT
Asked by: P. C. MOHAN

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

UNSTARRED QUESTION NO. 5602 TO BE ANSWERED ON 02.04.2018

## PAYING OF HOUSING LOAN BY EPFO

5602. SHRI P.C. MOHAN:

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- (a)whether  the  Government  proposes  to  permit  the  subscribers  of  the Employee's Provident Fund Organisation (EPFO) to pledge their future and present contribution of Provident Fund to pay housing loan;
- (b)if so, the details thereof;
- (c)whether this facility is available to all PF subscribers irrespective of their rank or category and if so, the details thereof;
- (d)whether EPFO will stand as guarantor to the loan raised by the employees' from the financial institutions like banks, if the scheme is approved and if so, the details thereof;
- (e)whether the Ministry will allow the subscribers to avail the subsidy given by the Ministry of Housing and Urban Poverty Alleviation; and
- (f) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT (SHRI SANTOSH KUMAR GANGWAR)

(a) & (b): The Government vide Notification No. G.S.R.351 (E) dated 12th April,  2017  has  inserted  a  paragraph  68BD  in  Employees'  Provident  Fund (EPF) Scheme, 1952 for withdrawal from the Employees' Provident Fund (EPF) for purchasing dwelling house or flat or construction of a dwelling house.

The withdrawal amount from the Provident Fund shall not exceed ninety per cent of the employer's share of contribution and interest thereon and employee's share of contribution and interest thereon.

The  Scheme  envisages  that  a  member  can  authorise  monthly installment for the repayment, wholly or partly, of any outstanding principal or interest of a loan obtained in the name of the member or spouse of the member or jointly by the member and the spouse.

- (c):                      As per paragraph 68BD(3) of EPF Scheme, 1952, no withdrawal under this paragraph shall be granted:-
- i) Unless member has membership of the Fund for atleast three years.
- ii) More than once.
- iii) Unless the share of  contribution  with interest  thereon  in  the  amount standing  to  the  credit  in  the  Fund  of  the  member/or  together  with  the spouse who is also a member, is not less than twenty thousand rupees.
- (d):                    As  per  proviso  to  paragraph  68BD(2)  of  EPF  Scheme,  1952,  the Commissioner shall not be responsible or liable or make himself liable for the act of the parties to the agreement.

Further  as  per  proviso  to  paragraph  68BD(4)  of  EPF  Scheme, 1952  when  the  membership  of  the  member  ceases  to  exist  or  where  the amount standing to in the credit of member's account is not sufficient to pay the  monthly  instalment  for  any  month,  the  Commissioner  or  where  so authorized  by  the  Commissioner  any  other  officer  subordinate  to  him  shall not  be  liable  to  pay  the  monthly  installment  or  any  late  fee  or  interest  or other such charges.

- (e) & (f): There is no restriction imposed in the Scheme by EPFO to avail subsidy given by Ministry of Housing and Urban Affairs, as per terms of their Scheme.

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