Five benefits of provident fund loans to buy a house: 1, interest rate advantage. As a policy loan, housing provident fund loan is characterized by low interest rate. 2. The repayment method is flexible and the prepayment is convenient. The repayment method of provident fund loans is extremely flexible. As long as the monthly repayment amount is not lower than the "minimum repayment amount", the borrower can determine the monthly repayment amount at will, which is very convenient for the borrower to arrange funds. The prepayment of commercial loans must be a multiple of 1 0,000 or 1 0,000 if it is not a one-time prepayment, but there is no specific provision for provident fund loans. As long as it is greater than the "minimum repayment amount", it is regarded as the prepayment amount. Commercial loans have clear provisions on the number of prepayment, while provident fund loans have three prepayment opportunities every month, and lenders can even adjust the prepayment amount at any time every month. 3. Improve capital utilization and return on investment. The funds in the provident fund account cannot be withdrawn at will and do not bear interest; Compared with the annual price increase, idle funds are actually shrinking for us; If the funds in the provident fund account are used as the down payment for buying a house, the monthly payment can be offset by the balance in the provident fund account, which is equivalent to receiving the house without paying the money; In the long run, the appreciation potential of the house is relatively large. Even if the house is rented out later, we can still get a lot of rental income every month. 4. Provident fund loans and commercial loans do not affect each other. Even if we have commercial loans at present, if we use the housing provident fund to buy a house again, the minimum down payment ratio is still 30%, and the loan interest rate will implement the provident fund interest rate, which will not increase our pressure on buying a house; If we use the provident fund loan before, buy a house again and choose a commercial loan, the down payment of 30% will still be considered as the first suite, or the benchmark interest rate will not increase our burden. 5. There are different guarantees after the loan. The housing provident fund loan covers all borrowers' accidental losses in purchasing houses and indoor family property, and personal accident insurance is collectively insured by insurance companies, without additional costs for borrowers. When the borrower has an insurance accident agreed in the insurance clause, the insurance company may pay a specified part of the loan amount for the individual. Legal basis: Article 26 of the Regulations on the Management of Housing Provident Fund, employees who have paid housing provident fund can apply for housing provident fund loans from the housing provident fund management center when purchasing, building, renovating or overhauling their own houses. The housing provident fund management center shall make a decision on whether to grant loans within 15 days from the date of accepting the application, and notify the applicant; Where a loan is granted, the entrusted bank shall go through the loan formalities. The risk of housing provident fund loans shall be borne by the housing provident fund management center. Twenty-seventh applicants for housing provident fund loans shall provide guarantees.

Validation of laws and regulations: June 2024 17