Dear friend Senapathy,
1 to 4:
As I explained in my brief, The Exempted Trust is governed by a set of Bye Laws styled on the lines of PF Act & Rules (Some Trusts on a few occasions may overlook certain regulatory provisions to grant loans (refundable). These Bye Laws are supposed to be printed and circulated in a booklet form to the employees where formats are also appended. The Trusts themselves have to print all applicable forms for loans, withdrawals, transfers, nominations etc. and issue to the members. There hardly any changes when compared to formats prescribed in the Act. Conditions and eligibility are also as per the Act/Rules only. You can down load all these forms from this link:
Download All Provident Fund(PF/EPFO) Forms here | Provident Fund Forms
5. All eligible employees/members can apply to the Trust for grant of loan or withdrawal when they leave, subject to reemployment. But while disbursing the loan the availability of funds in the Trust a/c. should be adequate for the simple reason the Trust is legally bound to maintain the quantum of investments as prescribed in the Exemption orders/Act. These investments are normally long term (locked up) govt or PSU securities and bonds maturing after say 15, 20, 25 yrs. Thus for immediate cash requirements to disburse loans & withdrawals Trusts used to struggle. If the proportion of investment is not maintained then the "exemption given to Trust" could be withdrawn.
6. As I said Trusts have to invest in approved securities & bonds with a rate of interest of, say 9% or 8.5% or whatever was prevailing at the time of investment. This interest mostly is realised every year which forms "Funds in flow" of the Trust. From this inflow the Trust has to meet interest credit, loans, withdrawals & transfers. For the loans the Trust used to add, say 1% or more or less over and above the interest declared by the EPO for that year say 8.5% (8.5 + 1 = 9.5% p.a.) and recover the EMI thro' salary. Supposing most of the investments made were yielding less interest say 7.5% or 8% there bound to be some imbalance vis-a-vis the declared interest to be credited to members' a/cs ( 8% - 8.5% is 0.5% deficit, which has to be made good by the employer directly to the Trust (apart from meeting the costs of running the Trust, say salary to staff, printing & stationery, inspection charges payable to RPFC etc.) To avoid all these head aches only most employers don't prefer to go for seeking Trust approval.
For your guidance use this link to download the EPF act.:
http://www.vakilno1.com/bareacts/emp...oyeepfact.html
Regards & thanks,
kumar.s.