When it comes to loans to buy a house, provident fund loans have many benefits, such as doubling the funds, enjoying tax exemption, early withdrawal, and low interest rates. Therefore, they are favored by the majority of home buyers. However, not everyone can apply for a provident fund loan. You must know that there are also disadvantages to buying a house with a provident fund loan! Friends who have not bought a house first understand that they can avoid these troubles when buying a house.

What are the disadvantages of provident fund loans?

1 Developers do not accept provident fund loans

Due to the long housing loan cycle of provident fund loans, it is slow for developers to withdraw funds , the risk is greater, so some developers do not accept provident fund loans. If this happens, home buyers can only choose commercial loans.

2 There is a limit on the loan amount

As a housing benefit for employees, the housing provident fund does not allow employees to borrow as much as they want, but there is a higher limit. However, if the personal loan limit is insufficient, the couple can apply for a provident fund loan together, so that the loan limit will be higher.

3 There are requirements for provident fund payment

In addition to the higher limit, if you want to apply for a provident fund loan, you must also meet a certain payment time. For example, the borrower must pay the provident fund continuously. More than 6 months, and the provident fund account is in deposit status, like Beijing, Shanghai, Guangzhou and other places. However, there are also some cities that require continuous deposits for more than 12 months before you can get a loan, such as Tianjin, Changsha and other places.

4. The lending cycle is long

Compared with commercial loans, the provident fund loan procedures are cumbersome, and the housing loan cycle is longer. If it is fast, it will be one month, if it is slow, it will be 2 months, or even longer, so , if you are in a hurry to buy a house, don’t choose a provident fund loan.

5 There are restrictions on applying for provident fund loans in other places

Although provident fund loans in other places are now available, there are still many problems in actual operation. If you want to return to your hometown to buy a house, it is best to understand it first Whether the provident fund can be borrowed in other places?

Although there are many benefits of providing provident fund loans to buy a house, there are also the above six major disadvantages. Therefore, before using provident fund loans to buy a house, it is best for home buyers to consult the local provident fund management center to understand the restrictions and then apply according to the requirements. Decide whether to use a provident fund loan based on your actual situation.