Provident fund loans refer to individual housing provident fund loans, which are issued by local housing provident fund management centers. With the housing provident fund paid by employees who apply for provident fund loans, commercial banks are entrusted to issue mortgage loans to housing provident fund depositors who purchase, build, renovate or overhaul their own houses and retired employees who pay housing provident fund during their working life.

Benefits of provident fund loans:

1. Provident fund loans are not restricted by the developer's bank account, and you can freely choose bank repayment.

The loan interest is much lower than that of commercial loans. At present, the interest rate of provident fund loans is around 3.25%, and the interest rate of commercial loans is around 4.9%.

3. The housing provident fund can be repaid in advance, and the cost of buying a house can be greatly reduced by using the idle state of funds, while commercial banks generally have restrictions on prepayment.

4. There are many houses to choose from for housing provident fund loans, and there are fewer restrictions on the age of second-hand houses.

Prerequisites for provident fund loans:

1. First, see if you have a provident fund account. This can be seen in the usual salary details, depending on whether the unit has sent it to you. As long as the account is paid, you can also visit the website of the local provident fund center.

2. On the premise of having a provident fund account, only those who have paid the provident fund in full for more than 6 months or accumulated 1 year before the month of applying for a loan are eligible to apply for a loan. The main purpose of this regulation is to prevent job insecurity and income instability, so as to control post-loan risks. Therefore, if your job changes frequently, you must check whether your provident fund meets these two conditions. Of course, there are different rules in some places. For details, please consult your local provident fund center.

3. If both husband and wife have outstanding provident fund loans, they will no longer be eligible for housing provident fund loans.

4. Those who have outstanding loans or credit stains with a large amount are not eligible for housing provident fund loans.

5. The sum of the lender's age and the loan period must be less than 70 years old. For example, if you are 40 years old and you apply for a loan for 30 years, the provident fund management center will not approve it.

6. Before the loan, a commercial housing sales contract must be signed.