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A new scheme
named “ Shramodha Home Loan Scheme” was launched in
December 2005 with the initiation of the Ministry of
Labour Relations and Foreign Employment, to grant
housing loans up to a maximum of Rs. 300,000 to eligible
EPF members meeting specified criteria at a
concessionary rate of 4 per cent to EPF members meeting
specified criteria.
Housing
Development Finance Corporation (HDFC) and State
Mortgage and Investment Bank (SMIB) are the
participatory credit institutions. In granting the loan,
the participatory credit institution would ascertain the
repayment capacity of the EPF members, based on their
own credit evaluation guidelines. In case of default of
a loan obtained under this scheme, the lending
institution would acquire the property.
Accordingly
no payment will be made from the member’s EPF balance.
However, defaulters of the EPF pledged loan scheme is
not entitled for a loan under the new scheme. This
concessionary rate housing loan scheme would facilitate
the members in possessing their own house or property
while minimizing the defaults of the EPF pledged loan
scheme. Further, the Shramoda scheme is expected to
minimize the number of housing loan defaulters. |
