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Savings come in handy
"FIRST OF all, we don't disburse loans. It is only the withdrawal of the amount the members had so far contributed", says Balachandran Nair, Regional Provident Fund Commissioner, Madurai.
Funds can be withdrawn for purchasing land, house or flat and for alteration and extension of the existing houses. "But the property should be either in the name of the member or the spouse," says Mr.Nair.
"For construction, along with Form No.31, a declaration has to be submitted. In case of outright purchase, copy of the sale agreement should be attached. The encumbrance certificate should also be submitted along with the above. The time taken for the disbursal of funds is normally 30 days", he says.
"The basic criterion for making a withdrawal is that the member should have a minimum of Rs.1000 in his credit as his contribution and should have completed five years of service at the time of withdrawal", points out Mr. Nair.
On the maximum amount a member can withdraw, he says, "(a) the cost of the property, land or construction estimate. (b) Basic salary plus dearness allowance multiplied by 36 for outright purchase or construction and in case of land acquisition, basic salary plus dearness allowance multiplied by 24. (c) Full accumulation including the employee's and the employer's contribution. Whichever is less of the above will only be sanctioned."
"If the member had purchased a land through the funds sanctioned by us, he/she can go in for a second withdrawal, for constructing a house in the same land," he adds.
"For extension or alteration of houses, the main condition is that the property should be in existence for a minimum period of 5 years. Here, the amount sanctioned is 12 times of basic salary plus dearness allowance", Mr.Nair explains.
"To prevent misuse of funds, we ask for a utilisation certificate from the member after 12 months from the date of sanction, in case of construction and it is six months from the date of sanction for outright purchase. If it is found that the amount is misused, we recover the same from their salary with a penal interest of 2 per cent". "In case of loan transfer, the main conditions are that the member should have completed 10 years of service with a minimum of Rs.1000 in his credit as his contribution. A member can get 36 times the basic pay plus dearness allowance or the amount sought, whichever is less. They have to produce certificate from the funding agency stating the loan amount and rate of interest charged. The amount will be paid directly to the lending agency and not to the member," he says.
MRA
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Metro Plus
Bangalore
Chennai
Coimbatore
Delhi
Hyderabad
Kochi
Madurai
Thiruvananthapuram
Visakhapatnam
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