Repayment method of provident fund loan

One-time repayment method

Withdraw the provident fund balance from the housing provident fund account and repay the loan in one go. Many people use this method to repay their loans after retirement. After repaying the loan, if there is still a loan that has not been repaid, the remaining loan principal and repayment term will be recalculated to determine the monthly repayment amount for each subsequent month.

Stop loan repayments for several months

Withdraw the balance from the provident fund account and repay the loan in advance. After repaying the loan early, the lender can stop repaying the loan for a number of months. (The length of the loan repayment suspension period is determined by the amount of the loan repaid in advance, but it cannot exceed 12 months.) After the loan repayment suspension period ends, the borrower must continue to make monthly repayments. There will be no penalty interest or compound interest on the interest owed during the repayment suspension period, and it will be deducted from the monthly repayment after the end of the repayment suspension period. Some home buyers often use this method to repay their loans when their income changes at a certain stage (such as illness, childbirth, unemployment, etc.).

Monthly repayment method

The provident fund is withdrawn directly from the provident fund account every month to repay the loan. When the amount of housing provident fund withdrawn is insufficient, the lender must make up the repayment amount in a timely manner.