Provident Fund Mortgage Loan Interest Rate

Provident Fund Loan Interest Rate refers to the personal housing provident fund loan interest rate, which is adjusted and published by the People's Bank of China.

Provident fund loans refer to loans enjoyed by employees who have paid housing provident funds. According to national regulations, all employees who have paid housing provident funds can apply for personal housing provident fund loans in accordance with the relevant provisions of provident fund loans. [9] Housing provident fund loans are national policy loans, so housing provident fund loan interest rates are lower than commercial loan interest rates. [5]

Latest interest rates: The People's Bank of China has decided to lower the interest rates for first-time personal housing provident fund loans from October 1, 2022. The interest rates for less than 5 years (including 5 years) and over 5 years will be reduced respectively Adjusted to 2.6% and 3.1%. The interest rate policy for the second set of personal housing provident fund loans remains unchanged. That is, the interest rates for less than 5 years (including 5 years) and more than 5 years are not less than 3.025% and 3.575% respectively. [8]

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1. The interest rate of provident fund loans follows the benchmark interest rate announced by the People's Bank of China in 2015.

2. The current benchmark interest rate for provident fund loans for less than five years is 2.75%, and for more than five years, it is 3.25%.

3. When applying for a provident fund loan, it generally requires more than one year of payment before it can be used.

1. What is the interest rate of the second mortgage loan for the house?

Let’s take the People’s Bank of China as an example. The benchmark interest rate of the People’s Bank of China:

1. Short-term loans: Within 6 months, the interest rate is 4.35, and for 6 months to 1 year (including one year), the interest rate is 4.35;

2. Medium and long-term loans: one to three years (including three years), the interest rate is 4 ．75; three to five years (including five years), the interest rate is 4.75; more than five years, the interest rate is 4.90;

3. Personal housing provident fund loan: five years (inclusive) and below, the interest rate is 2.75 ; Interest rate for more than five years is 3.25. The interest rate of the second mortgage loan will be adjusted upwards from the base interest rate according to the applicant's qualifications.

What is the provident fund loan interest rate in 2022

According to the provident fund loan interest rate table of the People's Bank of China in 2022, the provident fund interest rate is:

1. Personal housing housing provident fund Deposits: The annual interest rate for deposits paid in the current year and carried forward from the previous year is 1.5%;

2. Personal housing provident fund loans: the annual interest rate for five years or less (including five years) is 2.75%, and the annual interest rate for more than five years is 2.75%. is 3.25%.

Is provident fund interest the same as bank interest?

The money in the housing provident fund account has the same interest as the deposit, but the interest is not very high. It is usually settled once a year, on June 30 of each year. After settlement, the interest will be deposited into the provident fund account. At that time, a corresponding text message will be notified to the user, telling you how much interest accrued in the provident fund account in the previous year.

The money in the housing provident fund is equivalent to a current deposit. It can be withdrawn or deposited. Interest is calculated from the date when the housing provident fund paid by individuals and units is deposited into the individual housing provident fund account. According to the People's Bank of China Interest will be calculated based on the savings deposit interest rate stipulated before. If you do not use the amount of housing provident fund for a long time, the housing provident fund will also generate corresponding interest like a deposit.

The balance of the provident fund transferred in the current year will bear interest according to the current savings deposit rate. The balance of the housing provident fund carried forward from the previous year will bear interest at the interest rate based on the three-month lump sum deposit. If the user withdraws part of the provident fund, Then it is stipulated that the balance transferred first will be withdrawn.

The biggest function of the money in the provident fund account is not to generate interest, but to apply for loans, because the amount of provident fund loans is calculated based on the account balance. The larger the account balance, the more money you can apply for. A high loan amount can also save the lender more interest.

What is the latest interest rate for provident fund loans in 2022?

The latest base interest rates of the provident fund in 2022 are as follows:

(1) Starting from October 1, 2022, the interest rate of individual housing provident fund loans will be determined based on the number of housing units in the employee family.

(2) The interest rate for provident fund loans for the first set of personal housing will be reduced by 0.15 percentage points, to 2.6% for less than 5 years (including 5 years) and 3.1% for more than 5 years; for the second set of personal housing provident fund loans, the interest rate will be 5. 3.025% for less than 5 years (including 5 years) and 3.575% for more than 5 years.

(3) If you apply for a combination loan to purchase a house, the interest rate of commercial personal housing loans shall be based on the commercial bank’s housing unit identification standards.

Housing provident fund loans that were originally based on the benchmark interest rate will implement the new interest rate from January 1, 2023, which will be reduced by 0.15 percentage points, that is, 2.6% for less than 5 years (including 5 years) and 3.1% for more than 5 years. %.

For housing provident fund loans that were originally subject to a 1.1 times increase in the benchmark interest rate, the interest rates remain unchanged at 3.025% for less than 5 years (including 5 years) and 3.575% for more than 5 years.

Other related policies:

Continue to stop issuing housing provident fund loans to employee families who purchase their third (and above) homes; continue to stop providing housing provident fund loans to third (inclusive) users of housing provident funds. Loans and housing provident fund loans are issued to employee families who have not yet paid off their housing provident fund loans.

This ends the introduction to the provident fund loan listed interest rate and the provident fund loan interest rate table. I wonder if you found the information you need?