What does it mean to repay the provident fund loan month by month?
Monthly repayment refers to the monthly withdrawal of housing provident fund from individual housing provident fund account and transfer to individual bank account for repayment, so as to offset the principal and interest of housing loan returned by the borrower last month. The monthly repayment must be kept in the account of my housing provident fund (excluding housing subsidies for new employees) before signing the monthly repayment entrustment agreement.
12 times of the monthly deposit amount of housing provident fund in the latest month (hereinafter referred to as retained balance); The withdrawal amount shall be based on the balance of the customer's housing provident fund at the end of last month, and the amount above the retained balance shall not exceed the principal and interest of the housing loan returned by the borrower last month (excluding early repayment).
Which is better to repay the loan month by month or year by year?
1. You can use the monthly provident fund to make monthly payments, but during the whole repayment period, the repayment plan remains unchanged and the interest to be repaid has not decreased. It is more suitable for employees who want to reduce the pressure of monthly payment.
2. Repaying the loan year by year refers to withdrawing the housing provident fund from the individual housing provident fund account every year and transferring it to the borrower's loan issuing bank for repaying the principal and interest of the housing loan in advance. The withdrawal amount is based on the balance of housing provident fund at the end of last month in the repayment month agreed by the customer and the provident fund center (unit: 100 yuan), and the amount that does not exceed the remaining housing loan principal and interest of the borrower is withdrawn.
3. Therefore, the principal of the loan is mainly repaid year by year, which reduces the interest expense of the loan in the future and speeds up the repayment of the loan, which is more suitable for employees who want to reduce the interest expense of the loan. The two repayment methods are suitable for different people, and employees should choose according to their actual situation.
If you want to apply for provident fund loans, you should pay attention to your financial ability. Buying a house is of great help to everyone's life and can improve the living environment, but we should also pay attention to timely repayment. What does the above mean about the monthly payment of provident fund? Which is better, monthly repayment or annual repayment? If you have a loan, you should pay attention to planning your income.