According to the provisions of the repayment method, provident fund repayment refers to the direct repayment of loans by mortgage applicants using the funds in their housing provident fund accounts. Simply put, the borrower can apply to use the funds in his housing provident fund account to repay the provident fund loan directly. The purpose of doing this is that this repayment method reduces the intermediate links of housing provident fund extraction.

Provident fund repayment deduction is automatically deducted from the repayment bank card by the loan banking system. There are two ways to repay the provident fund. One is to deposit the monthly contributions into the repayment bank card before the repayment date and wait for the deduction. The trustee bank will deduct it from the provident fund account, that is, repay it with the balance of the provident fund account.

Legal basis: Article 26 of the Regulations on the Management of Housing Provident Fund stipulates that 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, within 05 days from the date of accepting the application, make a decision on whether to grant the loan or not, and notify the applicant; If the loan is granted, the entrusted bank shall handle the loan formalities. The risk of housing provident fund loans shall be borne by the housing provident fund management center.

What does it mean to repay the loan with housing provident fund?

According to the provisions of the repayment method, the repayment of housing provident fund refers to the direct repayment of loans by mortgage applicants using the funds in their housing provident fund accounts. Simply put, the borrower can apply to use the funds in his housing provident fund account to repay the provident fund loan directly. The purpose of doing this is that this repayment method reduces the intermediate links of housing provident fund extraction.

Housing accumulation fund refers to the long-term housing savings paid by state organs and institutions, state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises and institutions, private non-enterprise units, social organizations and their employees. From July 1 2065438, all housing provident fund management centers in China will handle the transfer and connection of housing provident fund in different places through the platform in accordance with the requirements of the National Operating Rules for the Transfer and Connection of Housing Provident Fund in Different Places issued by the Ministry of Housing and Urban-Rural Development. On 2002 1 July1day, the Ministry of Housing and Urban-Rural Development of the People's Republic of China confirmed the national housing provident fund service logo and decided to start it from now on.

According to the regulations of China, all enterprises, whether state-owned or private, should deposit and pay housing provident fund for their employees. The housing accumulation fund paid by enterprises and institutions does not belong to the nature of total wages, but belongs to the cost of enterprises. According to the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Deduction of Wages and Salaries and Employee Welfare Expenses (State Taxation Administration of The People's Republic of China No.20093), the "total wages and salaries" mentioned in Articles 40, 41 and 42 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC) refers to the total wages and salaries actually paid by enterprises in accordance with Article 1 of State Taxation Administration of The People's Republic of China Document No.3, excluding employee welfare expenses and employee education expenses borne by enterprises.

Housing provident fund is a personal housing savings fund specially used by employees for housing consumption expenditure, which has two characteristics:

First, accumulation, that is, housing provident fund is not an integral part of employees' wages, and it is not paid in cash. It must be deposited in a special account opened by the housing provident fund management center in the entrusted bank, and special account management is implemented.

Second, specificity, housing provident fund is earmarked and can only be used for purchasing, building, overhauling self-occupied housing or paying rent during storage. Only when employees leave their jobs, retire, die, completely lose their ability to work, terminate their labor relations with their units or move out of their original cities can they withdraw housing provident fund from their accounts.

What does it mean to repay the loan with provident fund?

The so-called repayment of provident fund loans means that employees who have paid in can apply to offset the balance in their personal housing provident fund accounts against the principal and interest of personal housing provident fund loans when they apply for housing provident fund loans.

Beijing Housing Provident Fund Management Center issued a notice today (June 30), starting from July 1 this year, borrowers who have accepted individual housing loans from housing provident fund can apply to use the funds in their housing provident fund accounts to repay the loans directly on the repayment dates agreed in the contract on June 1 and July each year.

Among them, if the borrower applies for a portfolio loan, the loan repayment business only supports offsetting the individual housing loan part of the housing provident fund, and the repayment of the commercial loan part is implemented according to the regulations of commercial banks.

Extended data:

Choose the repayment method that suits you:

First of all, if the balance of the provident fund account is tens of thousands of yuan, the remaining loans are all commercial loans, or the balance of the provident fund loans is very small, or all of them are pure provident fund loans, it is more beneficial to adopt the "one-time repayment method".

Because the "one-time repayment method" can use the funds in the provident fund account to repay the loan principal, in the case of more funds, more loan principal will be returned, which can reduce the interest expense of the loan. However, when the balance of commercial loans and provident fund loans is large, it is not necessarily reasonable to adopt the "one-time repayment method".

Because the repayment order of provident fund loans is to repay the provident fund loans first and then the commercial loans, when the balance of the provident fund loans is large, all the provident fund funds may be repaid, so borrowers cannot enjoy the preferential loan interest rate of the provident fund.

Secondly, if the balance of the customer's provident fund account is not much, it is best to use the "monthly repayment method". Due to the small balance of funds in the provident fund account, if the "one-time repayment method" is adopted, the loan principal can be repaid less, and the interest reduction is not obvious.

At the same time, it is suggested that customers can shorten the term of commercial loans while choosing this repayment method, so as to repay commercial loans as much as possible every month, so as to use the funds in the provident fund account as much as possible, return more commercial loans with high interest rates and reduce interest expenses.