There are two types of provident fund offset and loan repayment: annual offset and monthly offset. Regardless of whether it is a monthly or annual charge, the first thing that is flushed away is the provident fund portion.

The annual offset is to offset the principal:

1. If the provident fund loan in the portfolio loan is 20W, the principal of the provident fund loan will be offset first every time the annual offset is made. When the provident fund principal is used up at some point, and if you continue to charge annually, you will start to charge off the principal of the commercial loan, and then recalculate the monthly repayments.

2. Annual conflict occurs only twice a year, in April and September. No matter when you complete the business, it will only be implemented for you until the next April or September (if it is processed in April or September, it will not be implemented until the next round).

Extended information:

According to the relevant regulations of my country's "Company Law", the main functions of the company's provident fund are:

1. To make up for losses. When a company suffers a loss, it must find a way to make up for it, otherwise it violates the principle of capital maintenance. Both the surplus reserve fund and the capital reserve fund can be used to cover losses.

2. Expand the company’s production and operations. Without increasing capital, it is undoubtedly a convenient and fast important way to use the provident funds withdrawn over the years to expand the company's production and operations.

3. Increase capital. The company can convert the reserve fund into share capital when necessary.

4. It can be used to distribute dividends under special circumstances. Generally speaking, if a company has no profit for the year, it is not allowed to distribute dividends. However, in order to maintain the reputation of the stock, after the company has used the surplus reserve fund to make up for losses, with a special resolution of the shareholders' meeting, the company may use the surplus reserve fund to distribute dividends at a rate not exceeding 6% of the face value of the stock. However, after the distribution of dividends, the company's statutory surplus reserve fund shall not be less than 25% of the registered capital.

Sogou Encyclopedia - Provident Fund