1. Different loan interest rates

The loan interest rate for provident fund loans over 5 years is 3.25, and the total interest generated is low.

The loan interest rate for commercial loans without discounts is 4.9, and the total interest rate of the loan is relatively high.

The loan interest rate of the combination loan is between 3.25 and 4.9, and the total interest of the loan is relatively moderate.

2. Different loan amounts

The loan amount of provident fund is limited by the deposit period and balance of individual provident fund. In addition, the policy also stipulates the high loan limit of provident fund; portfolio loan The loan limit of commercial and commercial loans is higher than that of provident fund.

Therefore, many people choose portfolio loans when their provident fund loan limit is insufficient.

3. Loan conditions are different

The requirements for commercial loans are good personal credit, no bad credit record, and the ability to repay. As long as you are purchasing a house, whether it is an ordinary residence, a villa, or an office building, you can use a commercial loan.

Using a provident fund loan also requires that the individual's credit be good. In addition, there are also requirements that the individual's provident fund account must be paid continuously and in full in the first 6 months from the date of the loan. Provident fund loans are only available to families purchasing ordinary residences. Provident fund loans are not available for non-ordinary residences such as villas.

Portfolio loans must meet the requirements of provident fund loans and commercial loans.

In addition, if individuals have outstanding provident fund loans, they can no longer use provident fund loans and combination loans; and if they have outstanding commercial loans, in addition to the purchase and loan restrictions, they can also use commercial loans to buy houses. Another problem is that when buying a house in many cities, provident fund loans in other places are restricted, and natural combination loans are not possible. However, commercial loans are not subject to local restrictions.

4. The loan process is complicated and simple

The process of commercial loans is relatively simple. After applying for a commercial loan from the bank, the loan can be issued quickly.

The process of provident fund loans is complicated. You must first go to the Housing Fund Management Center to apply. The center will then start to process the loan after review. It takes a long time from application to loan issuance.

The commercial loan part of the portfolio loan is applied to the lending bank, and the provident fund loan part is applied to the provident fund center. The speed of loan disbursement is slower than that of provident fund loans and commercial loans.

5. Different sources of funds

The funds of the Housing Provident Fund Management Center come from the housing provident funds paid by individual employees and their units. It can be simply understood as "take it from the people and use it." To the people".

A commercial loan is a transaction that uses real estate as collateral to obtain a one-time loan from a financial institution such as a bank.

The funds for portfolio loans come from provident fund centers and banks.