Provident fund loans can be used to deduct personal income tax. As long as it is a loan for the first home, the personal income tax can be deducted. The personal tax deduction for housing loans is limited to the taxpayer or his or her spouse who uses the business alone or together. Personal housing loans from banks or housing provident funds are used to purchase a house in China for yourself or your spouse, and the interest payments on the first home loan occur, whether it is a provident fund loan or a commercial loan.

Procedure for applying for a provident fund loan

1. Submit information

When the borrower applies for a provident fund loan at the management department of the provident fund management center where the provident fund is deposited, the borrower chooses guarantee. If the center provides guarantee, all materials required for personal loan application, including the materials required for guarantee application, should be submitted, including personal and spouse’s ID cards, household registers, marriage certificates, divorce certificates, house purchase down payment certification materials, house purchase contract, Housing provident fund payment certificate, etc.

2. Review Notice

After the management department passes the preliminary review of the loan application, it will issue a "Guarantee Application Review Notice" and print out the "Loan Contract" and "Mortgage (Counter Guarantee) Contract" 》 and other relevant legal documents, and submit all personal loan information to the guarantee center.

3. Approval

The guarantee center will review the guarantee application. If the borrower meets the guarantee conditions, the guarantee center will issue a "Guarantee Application Approval Opinion"; the borrower will entrust an intermediary agency to handle the provident fund on its behalf. For loans, the agency is responsible for the guarantee application procedures and collects the guarantee service fee. (Note: The agency agency must have the qualification certification of the Beijing Housing Provident Fund Management Center and sign a cooperation agreement with the guarantee center.)

4. Payment

The borrower shall pass the review based on "Guarantee Application Approval Opinion Letter" to pay the guarantee service fee. The Guarantee Center issues invoices for guarantee service fees, and stamps the official seal of the Guarantee Center on approved legal documents such as the Loan Contract, Mortgage (Counter Guarantee) Contract, and Collection Contract.

5. Material transfer

The reviewed personal loan application materials (including the sealed contract) will be forwarded by the Guarantee Center to the Housing Provident Fund Management Department; if an intermediary is entrusted to handle it, the application materials will be forwarded by The intermediary agency is responsible for the transmission of the above information.

6. Sign the contract

The Housing Provident Fund Management Department supervises and guides the borrower applicants to sign on the "Loan Contract", "Mortgage (Counter Guarantee) Contract" and other relevant legal documents.

How long does it take for provident fund loan approval

1. The loan application (fill in the housing provident fund loan application form) is completed on the same day;

2. The bank conducts pre-loan review and agrees It will then be reported to the Municipal Housing Provident Fund Management Center for review, which will be completed within 2 working days.

3. The Municipal Housing Provident Fund Management Center will review the loan and complete it within 1 working day.

4. After passing the review, the lending bank and the borrower will sign a loan contract, which will be completed within 2 working days.

5. If you choose a guarantee guarantee, the guarantee company will handle the counter-guarantee mortgage procedures, which will be completed within 6 working days; if you choose a mortgage guarantee, the borrower should handle the mortgage insurance procedures, which will be completed within 7 working days; If you choose pledge guarantee, the bank will handle the pledge procedures.

6. The lending bank will submit the borrower’s information to the Municipal Housing Provident Fund, which will be completed within 2 working days.

7. The Municipal Housing Provident Fund Management Center will review and approve the loan materials and complete it within 3 working days.

8. The borrower goes to the lending bank to handle the transfer procedures, which is completed within 1 working day.

To apply for a provident fund loan now, it usually takes 18-19 working days from the time the bank applies for a housing provident fund loan to the loan to the lending bank.