Provident fund loan.
Housing provident fund loans are loans enjoyed by employees who deposit housing provident fund. According to national regulations, all employees who have paid housing provident fund can apply for individual housing provident fund loans according to the relevant provisions of provident fund loans.
Commercial loans, also known as personal housing loans, are commercial banks and housing savings banks approved by the People's Bank of China, which provide loans for urban residents to purchase ordinary housing for their own use, and the legal loan interest rate is implemented.
The difference between provident fund loans and commercial loans
Difference 1: the loan interest rate is different.
The benchmark interest rate for commercial loans over five years is 4.9%, and the interest rate for provident fund loans over five years is 3.25%.
Difference 2: The loan ratio is different.
For the same house, if the first set of urban commercial loans can be 70%, then the first set of pure provident fund loans will be almost 80% at most.
Difference 3: The loan process is different.
To apply for a commercial loan, the loan must be reviewed before the transfer, and the provident fund loan is reviewed after the transfer.
Difference 4: The approval time is different.
It takes about 20 working days to approve commercial loans and 40 working days for provident fund loans. Commercial loans are faster than provident fund loans.
Difference 5: The sources of loans are different.
Commercial loans mainly come from public funds raised by commercial banks and other lending institutions, while provident fund housing loans are funds paid by provident fund depositors.
Difference 6: Different users.
Commercial loans are for all eligible members of the public, while provident fund loans are only for employees who pay provident fund.
Difference 7: Interest is used for different purposes.
The interest of commercial loans is the profit of commercial activities and belongs to relevant investors, while the interest of provident fund is used according to the policy and can only be used for the construction of affordable housing.
Difference 8: The examination and approval institutions are different.
Commercial loans are mainly approved by banks, which make decisions; The provident fund mortgage needs the approval of the provident fund management center, and the decision is made by the provident fund management center, and the bank is only the executing agency.
Difference 9: The year and quota are different.
Different cities, different banks and provident fund management centers have different regulations. Generally speaking, commercial loans can choose a longer and more flexible repayment period and a higher amount.
Difference 10: The second suite is different.
Commercial loans have more restrictions on the second home loan policy and higher interest rates; Provident fund loans are less affected by the second home loan policy and can also enjoy preferential interest rates.
To sum up, commercial loans and provident fund loans are not only different in interest rates, but also in auditing and second-home loans, which also reminds buyers that it is best to find a unit that can pay housing provident fund for you when looking for a job, so that you can have more choices when choosing loan methods.