the meaning of provident fund loan and commercial loan.
Housing provident fund loans are loans enjoyed by employees who have paid housing provident fund. According to the national regulations, all employees who have paid housing provident fund can apply for individual housing provident fund loans according to the relevant provisions of housing provident fund loans.
Commercial loans, called individual housing loans, are commercial banks and housing savings banks approved by the People's Bank of China, which provide loans for urban residents to purchase ordinary housing for their own use, and the legal loan interest rate is implemented.
difference between provident fund loans and commercial loans
difference 1: different loan interest rates
the benchmark interest rate for commercial loans over five years is 4.9%, and the interest rate for provident fund loans over five years is 3.25%.
difference 2: the loan ratio is different
for the same house, if the first set of commercial loans in the city can be 7%, then the first set of pure provident fund loans can almost be 8% at most.
difference 3: the loan process is different
to apply for a commercial loan, the loan should be reviewed before the transfer, and the provident fund loan is reviewed after the transfer.
difference 4: the approval time is different
it takes about 2 working days for commercial loans and 4 working days for provident fund loans, and commercial loans are faster than provident fund loans.
difference 5: different sources of loans
the source of commercial loans is mainly public funds raised by lending institutions such as commercial banks, while provident fund housing loans are funds paid by provident fund payers.
difference 6: different users
commercial loans are open to all eligible members of the public, while provident fund loans are only open to employees who pay provident fund.
difference 7: different uses of interest
the interest of commercial loans is the profit of commercial activities and belongs to the relevant investors, while the interest of provident fund is used according to the policy and can only be used for the construction of affordable housing.
Difference 8: Different approval agencies
Commercial loans are mainly approved by banks, and the decision is made by banks; The provident fund mortgage needs to be approved by the provident fund management center, and the decision-making power is in the provident fund management center, and the bank is only the executing agency.
Difference 9: Different years and quotas
Different banks and provident fund management centers in different cities have different regulations. Generally speaking, commercial loans can choose a longer and more flexible repayment period and a higher quota.
Difference 1: Second home is different
Commercial loans have more policy restrictions on second home loans and higher interest rates; The provident fund loan is less affected by the second home loan policy and can also enjoy preferential interest rates.
To sum up, commercial loans and provident fund loans are different not only in terms of interest rates, but also in terms of auditing and second-home loans. At the same time, it reminds buyers that it is better to find a unit that can pay housing provident fund for you when looking for a job, so that you can have more choices when choosing loan methods.