Govt plans to allow PF subscribers to pledge future PF to pay home loan

The government is considering the proposal of allowing the subscribers of the Provident Fund to pledge their future stream of provident fund contributions to pay off housing loans.

The option for this has been recommended by an expert committee set up by the Retirement Fund Body to achieve the mission of the Modi™s Government to provide housing for all by 2022.

The Government is considering a proposal to allow subscribers of the Employees™ Provident Fund Organisation (EPFO) to pledge their future stream of provident fund (PF) contributions to pay off a housing loan.

Under the proposal, when a subscriber purchases a house with a loan from a bank or a housing finance company, he can take an advance from his PF accumulation and also sign a tripartite agreement with the bank and the EPFO for pledging his future PF contributions as equated monthly installment (EMI) payment.

The report is expected to be taken up for discussion within the Ministry of Labour and Employment and then presented to the EPFO™s Central Board of Trustees (CBT) over the coming months.

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