EPFO subscribers may get home and education loan soon: Sources

The Central Board of Trustees have received a proposal that asks it to register Employees' Provident Fund Organisation (EPFO) as a Financial Services Entity (FSE). Sources close to the development confirmed to  Zee Business's Prakash Priyadrshi that the Board, during its recent meet, received a proposal to include EPFO as an entity that also indulges in financial activities. According to the sources, the proposal states that the EPFO is looking at entering the business of granting all types of loans to its subscribers to increase the rate of returns on its funds. It says that offering all types of secured loans to its subscribers will be more secure for EPFO and there will be no risk factor attached to these loans either. 

Sources say that the proposal suggests that the surplus and the unclaimed amount can also be used by the retirement fund body. It suggests that the subscribers should be granted specific loans like home loan, car loan and education loans for their children. It says that in these loan, his/her future contribution can also be taken into account by the retirement fund body. 

EPFO manages the funds of more than Rs 8 lakh crore and has close to 6 million subscribers. At present, the retirement body is looking forward to to other mediums of investment that provide good returns to it. In addition, it is working on a housing scheme with HUDCO.

Notably today, Labour Minister Santosh Gangwar and Union Transport and Highways Minister Nitin Gadkari  launched one unified registration form for Employees' Provident Fund Organisation (EPFO) and Employees' State Insurance Corporation (ESIC) to save employers from filing 2 separate forms to register with the EPFO and ESIC. Also launched on the occasion was a unified electronic challan-cum-return (ECR or return) to facilitate filing of EPFO and ESIC returns through a unified process.

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About Central Board of Trustees
The Central Board of Trustees, EPF is a statutory body constituted by the Central Government under the provisions of section 5A of the Employees' Provident Funds and Miscellaneous Provisions Act,1952 (Act 19 of 1952). The tenure of the Board is five years.