Which groups are suitable for business-to-public loans?
1. See how many years you have left to repay: If the commercial loan is in the early stage of repayment (the first 2-3 years), it is more cost-effective for the applicant to convert it into a provident fund loan at this time. It is not recommended to transfer the business to the public at the end of repayment. For example, it is not cost-effective for a commercial loan with a term of 10 to be converted into a provident fund loan in the sixth or seventh year, because the bank has almost charged your loan interest in previous years.
You have to consider whether you plan to repay in advance. If the applicant intends to pay off the loan in the last 2-3 years in advance, there is no need to handle business transfer. In the process of transferring business to the public, according to the loan contract of the original commercial loan, the consent of the original lending bank must be obtained, and the bank will generally charge the penalty interest arising from the early repayment, plus the guarantee fee. And the whole process won't save much.
3. Think about whether you are preparing a second loan for provident fund. In fact, young people will have the demand of buying a house and changing houses in the future. The reduction of the maximum amount of provident fund loans will increase their financial pressure and even affect the subsequent purchase plan. Therefore, it is not recommended that people with less commercial loan balance apply for corporate loans.
4. Pay attention to floating cities with second-home provident fund loans. If you have two houses under your name and the interest rate of commercial loans is discounted, it is not recommended for such people to handle business transfer. The interest rate of second-home provident fund loans in some cities will rise by 10%. If the applicant has enjoyed a 30% discount on commercial loans before, it is obviously not cost-effective to convert commercial loans into corporate loans.