We can apply for provident fund loans before renovation, but what is the amount of provident fund loan and how long can we borrow? Let’s find out together.

What is the provident fund loan amount for decoration?

The housing provident fund decoration loan limit is determined by the applicant’s provident fund payment amount, personal monthly salary, loan term and other factors. There is a calculation formula for the housing provident fund decoration loan limit, namely: loan amount = The borrower's monthly provident fund payment amount and the borrower's monthly provident fund payment ratio are 0.3512 over the loan period.

If you want to apply for a housing provident fund renovation loan, you can refer to the above formula to calculate the loan amount. Be sure to determine the appropriate loan amount based on your actual situation to avoid rejection of the application.

There are three main factors that will affect the amount of renovation loans:

1. Determining the term of the loan

There are several conditions for determining the amount of provident fund loans for renovation. The loan term of the lender determines the loan amount. Since the age of each lender is different, if the borrower is older, the loan period will be relatively shorter. The maximum term for a renovation loan must not exceed 65 years old. , if female, cannot be over 55 years old. Different regions will have certain differences in requirements. Therefore, the amount of renovation loan is determined based on age.

2. Based on the amount of provident fund

If you want to know the amount of provident fund loan for renovation, you also need to base it on the amount of provident fund paid by each person. Each unit pays its employees a different amount, which is 12% of the salary, so when each customer chooses a renovation loan, his loan amount is also different. The greater the proportion of wages paid, the higher the loan amount will be, and when taking out a loan, the amount of the decoration loan can be determined based on the total amount deducted from the provident fund account every month. Therefore, when choosing the provident fund loan amount for decoration, you also need to go to the provident fund office to understand the balance of the account, including the amount of provident fund paid each month.

3. Decision based on personal circumstances

If the house is decorated in the names of two people and both husband and wife have provident funds, then the loan amount for renovation will naturally be higher. For some, if only one person has a provident fund, the loan amount will be subject to certain restrictions, and it will be based on the standard provident fund loan method, or there will be only one person's name on the property ownership certificate. Therefore, when deciding on a provident fund loan decoration contract, you also need to check whether the names of two people are on the property ownership certificate and whether both people have provident funds.

How long can provident fund loans be used for renovation?

The term of provident fund decoration loans is generally about 10 years.

The longest provident fund loan period for decoration can be up to 30 years, but in some cities the maximum loan period may be only 20 years. You can stipulate the period of provident fund decoration loans according to the actual situation in your area.

You can check the provident fund decoration loan policy in your area and take a look at the regulations on the period of time. Everything should be based on the regulations in your area. If you want to successfully use a provident fund loan for renovation, in addition to knowing the loan period, you also need to understand some of the loan conditions.

Summary: The above is about the renovation loan amount and loan period. I hope it will be helpful to you.