Commercial loans and provident fund loans are relatively common loan methods nowadays, and many people choose these two methods to buy houses. But there are also some people who want to change the loan into a provident fund loan after choosing a commercial loan. If they want to change, there must be a process. So what is the process of converting a commercial loan into a provident fund? Next, let’s find out together.
1. Submit information
After you have the idea of ??converting a commercial loan to a provident fund, you need to check whether you currently have the conditions to convert it to a provident fund. If it is determined that you meet the conditions, you need to submit relevant information, fill out the "Application Form for Converting Commercial Loans to Provident Funds", and accept the bank's review. In order to avoid trouble, be sure to confirm all required materials in advance, ensure the authenticity of the submitted materials, and wait patiently for review.
2. Loan review
When you submit a review for converting a commercial loan into a provident fund, banks will generally review it. After the information you submit is reviewed by the bank, you will receive a notification from the bank, interview with bank staff, and review and print the applicant's "Personal Credit Report". At the same time, you need to conduct a pre-loan trial calculation on the applicant in the provident fund system to measure the applicant's repayment ability, loan amount, term, interest rate, repayment method, etc. after transferring to the provident fund. This is the first trial. After passing the first trial, proceed to the next trial. If the application fails in the first instance, the provident fund loan cannot be completed.
3. Sign the contract.
Converting commercial loans to provident funds also requires signing a contract. After you pass the bank's credit review, you need to sign a loan (mortgage) contract with a commercial loan bank and a guarantee contract with a guarantee company designated by the Provident Fund Management Center.
4. Pay the difference.
Anyone who has ever applied for a housing loan must know that the amount of a provident fund loan is not as high as that of a commercial loan. So if you want to convert a commercial loan to a provident fund loan, you must first convert the total amount of the original commercial loan and the provident fund loan. The difference in the total amount is made up, which is equivalent to the down payment of this difference, which is deposited into the deposit account opened by the provident fund loan and used to settle the loan from the original commercial bank. The remaining loan owed to the commercial bank will be settled after the funds of the provident fund loan are released.
5. Issuance of provident fund loans
You need to go to a commercial bank and provident fund management center to apply for a commercial loan to provident fund loan, so that you can apply for a guarantee company designated by the commercial bank and provident fund management center. After completing all relevant matters, wait for the Provident Fund Management Center to release the loan funds, which will be used to settle the remaining loans from the original commercial bank. At this time, the property can be released from the commercial bank and transferred to the provident fund management center.
6. Delivery and handover of real estate
When you apply for a commercial loan to provident fund loan, the last step is to handle the mortgage release and handover of the property. This is also the first step for you to apply for a commercial loan to provident fund loan. the most important step. You must go to the original commercial loan bank to cancel the real estate mortgage and complete the provident fund loan mortgage registration procedures. At this point, the mortgage of the property and the business transfer loan have been completed, and all that remains is the monthly repayment in the form and amount of the provident fund loan on time.
The previous article introduced the relevant content of the process of converting commercial loans into provident funds. Hope this helps. There are many procedures for converting commercial loans into provident funds, so you should consider it carefully when handling it. If you need to handle it, be sure to understand the relevant procedures, so that it will be more convenient. Related Q&A: How to convert a commercial loan to a provident fund loan. The specific process of converting a commercial loan to a provident fund loan is as follows: 1. Apply for a housing provident fund loan with the housing purchase contract, ID card, housing provident fund savings magnetic card, and seal at the corresponding bank real estate credit department in each district or county. To use the housing provident fund loan of both spouses, you must also bring a marriage certificate or other proof of the relationship between husband and wife. 2. Fill out the personal housing provident fund loan application form and wait for bank review. 3. After passing the review, the lending bank signs a loan contract and a mortgage contract, and the borrower goes to the property rights department to handle the loan guarantee procedures. 4. Go through the procedures for housing mortgage insurance. Together with the loan contract, mortgage contract (pledge contract), other property rights certificates, mortgage certificate and other loan information, submit it to the lending bank for house insurance procedures. 5. Sign a repayment agreement and transfer agreement. 6. Bank transfer. According to the legal basis, Article 5 of the "Housing Provident Fund Management Regulations" stipulates that the housing provident fund shall be used for the purchase, construction, renovation and overhaul of self-occupied housing by employees, and no unit or individual may misappropriate it for other purposes.