The liquidated damages for the provident fund mortgage loan shall be collected according to the amount agreed in the loan contract, but the amount agreed by both parties shall not exceed 30% of the actual loss. If the agreed liquidated damages are too high or too low, the parties may request the court or arbitration institution to reduce or increase them appropriately.

legal ground

Article 585 of the Civil Code

The parties may agree that when one party breaches the contract, it shall pay a certain amount of liquidated damages to the other party according to the situation of breach of contract, and may also agree on the calculation method of the amount of compensation for breach of contract.

If the agreed liquidated damages are lower than the losses caused, the people's court or arbitration institution may increase the liquidated damages at the request of the parties; If the agreed liquidated damages are excessively higher than the losses caused, the people's court or arbitration institution may appropriately reduce them at the request of the parties.

Article 12 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Disputes over Commercial Housing Sales Contracts.

If the parties demand a reduction on the grounds that the agreed liquidated damages are too high, they shall reduce them appropriately on the basis that the liquidated damages exceed 30% of the losses caused; If the parties demand an increase on the grounds that the agreed liquidated damages are lower than the losses caused, the amount of liquidated damages shall be determined according to the losses caused by the breach of contract.