labourdept.gov.lk Application Housing Loans From Employees Provident Fund Sri Lanka : Department Of Labour

Name of the Organisation : Department Of Labour (labourdept.gov.lk)
Type of Announcement : Application Housing Loans From Employees Provident Fund
Country : Sri Lanka
Website : http://www.labourdept.gov.lk/index.php?option=com_content&view=article&id=100&Itemid=33&lang=en

Application Housing Loans from EPF

Eligibility & Requirements :
Approval of housing loans to members who possess provident funds will be granted by the Provident Fund Division.

Related : Department of Labour Registration Of Factories Sri Lanka : www.statusin.org/846.html

Loans from the recognized lending institutions can be obtained up to the following limits only.

1 If the applicant is in service, Up to 75% of his Provident Fund deposits:
2 If he is not in service, Up to 50% of his Provident Fund deposits;
For construction or completing construction of a house.
For purchasing a house or land.
For construction of a portion of house or for adding a new portion
For being free from the burden of mortgage loans

An employee can obtain his loan for the above purposes from an approved commercial bank Reaping his Employees Provident Fund balance as security.

Methods of Submission :
Every applicant may obtain application forms for housing loan from the District Labour Office. Perfected application forms should be handed over to the District Labour Office.

Application Forms : Every applicant should submit his housing loan application in duplicate. Necessary forms may be obtained from the District Labour Office.

Step by Step Procedure

Step 01: Obtaining application forms in duplicate from the District Labour Office or from the Head Office of the Department of Labour.
Step 02 : Handing over of the perfected applications form to the District Labour Office of the respective area.

Step 03 : Sending the perfected application to the Provident Fund Division of the Central Bank of Sri Lanka.
Step 04 : Sending the certificate on the balance available in the account to the Labour Office by the Provident Fund Division.

Step 05 : Processing of the application
Step 06 : Advising the financial institution / bank to issue the loan.

Step 07 : Repayment of loan to the financial institution in installments as prescribed and on completion of repayment, sending a certificate to that effect by the financial institution to the Labour office.

Step 08 : The Department of Labour should inform the Employees Provident Fund Division of the Central Bank that the respective loan has been settled.

Note: If there is a difference between the name mentioned in form C and the name given in the loan application, the application will be rejected.

Time for Submission

Working Days : Mondays and Wednesdays
Opening Hours of the Counters : 9:00 a.m. to 12:00 noon.
Holidays : Public and Mercantile holidays.

Period of Validity : From the date of handing over of the application to the date of complete repayment or up to the rejection of application.

Expenditure on the Service: A sum of Rs. 25.00 will be charged for the application form.

Fee: Investigation and institutional fee up to a maximum of Rs.500.00 will be charged

Penalty: No penalty will be charged in respect of these services.

Fees: This is free of charge.

Penalty: When the loan applicant does not pay loan installments as prescribed fines imposed by the financial institutions will have to be paid.

Note: If the loan is not repaid property, the loan will be deducted from the Provident Fund Balance together with a penalty is addition the normal interest.

Supporting Documents: Required documents are mentioned in the loan application form.

Service Responsibilities :
Designation | Division :
Assistant Commissioner of Labour District Labour Office
Senior Labour Officer Sub Labour Office

Special Circumstances :
For the Employees Provident Fund
** These who not in service at present may apply for 52% of the loan.
** The spouse or the spouse and the children jointly may apply for the loan.

Specimen Application Forms together with Specimen Data: Application forms may also be obtained from the District Labour Office.