Although provident fund loans and commercial loans are both housing loans for lack of funds, there are still some differences between them.
First, their loan targets are different. The object of housing provident fund loans is the depositor of housing provident fund and the retired workers of the deposit unit. The loan object shall meet the following conditions:
1. The housing accumulation fund has been continuously paid for 6 months or has been paid for more than 24 months and is still being paid.
2. To have a stable income and occupation, but also the ability to loan principal and interest.
There must be a purchase contract or other relevant documents.
4. Provide housing fund management, and there are also guarantee methods agreed by subordinate points.
5. There are other requirements for housing fund management.
Second, the loan amount is different. General commercial loans can be as high as 80% of the total house price, while housing provident fund loans can be as high as 95% or 90% of the total house price according to the nature of the house purchased.
Third, the costs of the two loans are different. Commercial loans generally require legal fees and insurance premiums; Provident fund loans generally require guarantee fees and evaluation fees.
Fourth, the loan interest rate is different. The benchmark interest rate for commercial loans is 6. 15%, and the interest rate for provident fund loans over five years is 4.25%.
5. Their interests and purposes are different. The interest on commercial loans belongs to the profits of commercial activities and belongs to the relevant parties. The interest of the provident fund is used for the purposes stipulated by the policy and can only be used for the construction of affordable housing.
Six, the examination and approval agencies are different. Commercial loans are mainly approved by banks, which make decisions; Provident fund loans need to be approved by the provident fund management department, and the decision is made by the provident fund management department, and the bank is only the executing agency.
Seven, the age limit of the lender is different. Generally speaking, commercial loans have an upper age limit; There is no age limit for provident fund loans. So now there are also elderly people who use the housing provident fund to buy a house after retirement.
After eight, the two are aimed at the price difference between the two suites. For the second home loan, there are many policy restrictions on commercial loans, and the interest rate will be higher; Provident fund loans are basically not affected by the policies related to the second home loan, and they can also enjoy preferential interest rates.
Therefore, from the above analysis, it can be concluded that although the loan target of the provident fund is limited, it is undeniable that the interest rate of the housing provident fund is lower than that of commercial loans, and it is a very favorable and popular loan form.