Generally speaking, portfolio loans are used after the borrower’s loan limit has exceeded the upper limit of provident fund loans. When the provident fund loan limit is insufficient, the lender can apply for a provident fund loan from an entrusted bank. Apply for a combination loan from the handling bank, and then use provident fund loans and commercial loans at the same time. This can also avoid the high interest rates of using commercial loans alone.

How to repay a combination loan?

1. What is a combination loan? A combination loan generally refers to a loan that is applied for by users who meet both commercial loan conditions and housing provident fund requirements. Generally, when the housing provident fund loan limit is insufficient, you will choose a combination loan. In this way, you can not only have a lower loan interest rate, but also enjoy the local preferential policies for combination loans.

2. For borrowers who withdraw provident funds to repay commercial loans in the loan portfolio, they cannot use the entrusted deduction and loan repayment method. They will still withdraw and repay the loan once a year according to the original regulations. After the commercial loans are repaid, , and then apply for the provident fund entrustment deduction and loan repayment.

3. Portfolio loans generally require the establishment of two separate accounts because the two parts are separate loans.

4. The provident fund part implements free repayment, that is, we can set a low repayment amount every month, but the monthly payment must be greater than this amount. In fact, this amount is equal to the equal amount of principal and interest.

5. However, this amount is not fixed. You can temporarily adjust the repayment amount every month. If you have money, you must pay more. If you have no money, you must reach a lower repayment amount. The commercial loan part has two repayment methods: equal principal and equal principal and interest. At the same time, among the portfolio loans, the loan terms of provident fund loans and commercial loans must be consistent.

What is the repayment method of portfolio loan?

1. In the portfolio loan, the provident fund loan part adopts the free repayment method, and the commercial loan part adopts the repayment method recognized by commercial banks. If you have a lot of money in your provident fund account, you can sign a monthly transfer and repayment withholding business. When you repay the monthly repayment, you will first transfer it from your provident fund account, and then use your bank repayment deposit discount when the account amount is insufficient;

2. Commercial loans can also automatically deduct the money from the bound repayment account on a monthly basis, so the insurance method is to deposit enough money in your repayment account in advance every month.

3. If the borrower repays the loan in advance, he or she can voluntarily choose to repay any part of the loan in advance, whether it is a provident fund loan or a commercial loan.

4. Overdue deductions for the housing provident fund loan part and the commercial loan part of the portfolio loan shall be implemented in accordance with the respective regulations and standards of provident fund management and commercial banks.

5. Compared with provident fund loans, commercial loans not only account for a higher proportion, but the loan interest is also much higher. For the majority of home buyers, if they can repay the commercial loan part first, the pressure on the remaining provident fund loan will be relatively less, and the interest will be reduced a lot. However, it should be noted that early repayment must be paid with your own savings. If you use provident fund, you can only repay the provident fund loan part.