Housing provident fund does not necessarily need to be paid continuously.

When the labor relationship between the employee and the unit is terminated, the housing provident fund is in a sealed state. However, if an employee needs to apply for a provident fund loan, he or she must have paid the housing provident fund for more than 6 consecutive months before he or she can apply. Moreover, after providing a provident fund loan, you need to continue to pay housing provident fund until the loan is paid off. Otherwise, the provident fund loan contract may be terminated due to non-payment of housing provident fund. When a unit hires employees, it must go to the Housing Provident Fund Management Center to register for deposit within 30 days from the date of hire.

What is the process of buying a house with a provident fund loan

1. Submit an application for a provident fund loan.

If you need to use a provident fund loan, the lender first needs to submit a loan application to the provident fund management center in your city and provide the information required for the loan.

2. Preliminary review of provident fund loans.

After receiving the loan application from the lender, the Provident Fund Management Center will review the lender’s qualifications, loan amount, loan period, loan information and other information, and provide opinions.

3. Sign a provident fund loan contract.

After passing the review by the Provident Fund Center, the lender receives a notice from the loan contracting bank. At this time, the borrower only needs to bring his ID card, household registration book, bank account number and other information within the specified time to go to the contracting bank to sign the loan contract.

4. Handle house insurance and mortgage loan registration procedures.

After signing a loan contract with the bank, the lender must handle insurance and mortgage registration procedures as required, but the fees incurred during the process shall be borne by the lender himself.

5. Waiting for provident fund loan disbursement.

After the lender completes the mortgage registration procedures, the loan contract also comes into effect. The bank will transfer the loan to the designated account on the date stipulated in the contract and send the loan receipt to the lender.

Advantages of provident fund loans

1. Loans enjoy low interest rates.

The interest rate of housing provident fund loans has always been lower than that of commercial loans. Housing provident fund loans are policy loans with low interest rates. The interest rates of housing provident fund loans are about 2 percentage points lower than the benchmark interest rates of commercial bank housing loans.

2. Housing provident fund loan interest can be deducted from personal income tax.

Relevant laws stipulate that housing provident fund loan interest paid by individuals can be deducted from the taxable income of monthly personal wages and salary income.

3. The provisions on early repayment of provident funds are loose.

If it is a provident fund loan when buying a house, if the buyer wants to repay it in advance, he can apply to repay all the loan in advance. If he only repays part of the loan in advance, as long as he meets the conditions and has complete information, it can be processed smoothly. In addition, the early repayment policy of provident fund loans is loose and is not restricted by time, amount, or frequency. Borrowers can repay early at any time without charging borrower fees. Early repayment of commercial loans generally requires a certain penalty.

Legal basis:

"Housing Provident Fund Management Regulations" Article 15 When a unit hires employees, it must register with the Housing Provident Fund Management Center within 30 days from the date of employment. And handle the procedures for the establishment or transfer of employee housing provident fund accounts. If a unit terminates the labor relationship with an employee, the unit shall register the change with the Housing Provident Fund Management Center within 30 days from the date of termination of the labor relationship, and handle the transfer or sealing procedures for the employee housing provident fund account.