What's the difference between portfolio loans and commercial loans?
So, what's the difference between portfolio loans and commercial loans? First, the loan interest rate is different. Provident fund loans are generally more than five years, and the loan interest rate is generally 3.25%, resulting in relatively low total interest. If it is a commercial loan, the loan interest rate is 4.9%, and the total interest of the loan is relatively high without any discount. If it is a portfolio loan, the loan interest rate is generally between 3.25% and 4.9%, and the total loan interest is relatively moderate. Second, the loan amount is different. The amount of provident fund loans is generally limited by the deposit period and balance of individual provident fund. At the same time, the policy also stipulates that provident fund can also be loaned, and the loan amount of portfolio loans and commercial loans is generally higher than that of provident fund. Therefore, when the amount of provident fund loans is not enough, most people choose portfolio loans. Third, the terms of the loan are different. The requirement of commercial loan is that the individual has good credit, but also has no bad credit record and repayment ability. Generally speaking, as long as you buy a house, whether it is an ordinary house or a commercial and residential building, villa or office building, these can be in the form of commercial loans. If you use provident fund loans, you also need good personal credit. There is also a requirement, that is, the first six months from the date of loan. At the same time, the individual's provident fund account must be paid in a continuous, normal and full amount. Generally speaking, provident fund loans are only for families who buy ordinary houses, villas and other related non-ordinary houses, commercial and residential buildings and other non-housing families, so it is impossible to use provident fund loans. In addition, individuals who have outstanding provident fund loans can no longer use provident fund loans and portfolio loans; If there are outstanding commercial loans, then in addition to the factors of restricting purchases and loans, you can also use relevant commercial loans to buy a house. Another problem is that if you buy a house in multiple cities, the loan of provident fund in different places will also be restricted, and it is impossible to naturally combine loans; For commercial loans, there are no local restrictions.
Matters needing attention in portfolio loans and commercial loans
So, what are the precautions for portfolio loans and commercial loans? Generally speaking, the process of loan should be simple and different, and the process of commercial loan is relatively simple. Banks will issue loans soon after they apply for commercial loans. Generally speaking, the process of provident fund loans is also very complicated. Relevant personnel must first apply to the housing fund management center. After the center conducts the audit, they can handle the loan work, and it takes a long time from application to loan issuance. If it is a portfolio loan, the commercial loan part should be applied to the loan bank, and the related provident fund loan part should also be applied to the provident fund center. Loans are generally slower than provident fund loans and commercial loans. Different loan methods also have their own advantages and disadvantages. When buying a house, the relevant personnel must choose the loan method that suits them according to the loan conditions and their own needs. What's the difference between portfolio loans and commercial loans? That's all. I hope I can help you.