First, the impact of shortening the number of years
Saving interest expenses: by repaying part of the loan principal in advance and shortening the loan term, the total loan interest can be effectively reduced, thus saving interest expenses.
Speeding up repayment: shortening the fixed number of years means that the loan will be paid off in a shorter time, which will help individuals get rid of the debt burden earlier.
Keep the monthly repayment stable: choosing to shorten the fixed number of years and keep the monthly repayment amount unchanged will help individuals maintain a stable repayment plan.
Second, reduce the impact of monthly payments.
Reduce economic pressure: reducing the monthly repayment amount will help individuals to reduce economic pressure in a short period of time and better cope with other expenses in life.
Keep the loan term unchanged: if you choose to reduce the monthly payment, the loan term will remain unchanged and individuals can share the repayment pressure for a long time.
Interest expenses may increase: since the loan term has not been shortened, individuals may have to pay more interest, especially if the loan interest rate is high.
Individuals should consider their own economic situation, repayment ability and future financial planning comprehensively when choosing to shorten the service life or reduce the monthly payment. If the individual is in good financial condition and wants to pay off the loan as soon as possible to reduce interest expenses, then it may be more appropriate to choose to shorten the service life. However, if individuals are facing greater economic pressure in the short term and need to reduce the monthly payment burden, then it may be more appropriate to choose to reduce the monthly payment.
To sum up, when the provident fund is partially repaid in advance, the choice of shortening the fixed number of years or reducing the monthly payment depends on the actual situation and needs of the individual. Shortening the fixed number of years will help to save interest expenses and speed up the repayment progress, while reducing the monthly payment will help to alleviate the economic pressure and maintain a stable repayment plan.
Legal basis:
Regulations on the administration of housing provident fund
Article 26 provides that:
Workers who have paid housing provident fund can apply for housing provident fund loans to the housing provident fund management center when purchasing, building, renovating or overhauling their own houses.
Regulations on the administration of housing provident fund
Article 3 1 stipulates that:
Workers and units have the right to inquire about the deposit and withdrawal of their housing provident fund, and the housing provident fund management center and the entrusted bank shall not refuse.