Will the withdrawal of provident fund affect the loan amount?
Withdrawing the provident fund will affect the loan amount. If the borrower has applied for a provident fund loan and the loan amount has been issued, then the borrower's withdrawal of the provident fund has no effect on the provident fund loan.
If the borrower fails to apply for a provident fund loan and withdraws the balance in the provident fund account first, then his loan amount will be reduced.
What are the benefits of buying a house with provident fund?
1. The loan interest rate is low and the repayment interest is low.
With the same loan amount and the same repayment amount, compared with commercial loans, provident fund loans not only have shorter repayment time, but also have much less repayment interest. If the annual interest rate of commercial loans is 4.9%, then the annual interest rate of provident fund loans to buy houses is only 3.25%. Moreover, the interest rate of bank commercial loans will always fluctuate, and the interest rate of provident fund loans has always been relatively stable.
2. The loan period is long, and there is no penalty for repaying the loan in advance.
Property buyers who want to repay the provident fund loan in advance can apply for repaying all the loans in advance. If only part of the loan is repaid in advance, as long as the conditions are met and the information is complete, it can be handled smoothly. Regardless of time, amount and frequency, the borrower can repay the loan in advance at any time without charging the borrower.
If the borrower applies for a pure commercial loan, it is likely to pay liquidated damages when repaying the loan in advance. In addition, the procedures for prepayment of commercial loans are more complicated and the threshold is higher than that of provident fund loans.