Provident fund hedging is the behavior that the borrower pays off part or all of the loan principal in advance by using the funds deposited in the provident fund account during the term of the provident fund loan, with the purpose of reducing the repayment burden of the borrower and reducing the total interest paid. Specifically, when the borrower repays the principal of the provident fund loan in advance, he needs to apply to the housing provident fund management center for early repayment, and after approval, part or all of the balance in the provident fund account will be returned to the principal of the loan, which can reduce the total loan amount and pay interest, and at the same time end the loan cycle in advance to avoid the risk of long-term loan interest rate. It should be noted that the hedging operation will have an impact on the balance of the borrower's provident fund account, and will also have an impact on his future loan application. Therefore, it is necessary to carefully consider before hedging the provident fund and make a choice according to the actual situation.
Is there any risk in the hedging operation of provident fund? A: There are the following risks in the process of fund hedging: 1. Early repayment requires additional penalty interest and handling fee, which increases the loan cost. 2. Early repayment may lead to insufficient balance in the provident fund account to meet the subsequent loan demand. 3. Early repayment needs to meet certain conditions and procedures, and the application process is complicated. Therefore, when hedging the provident fund, it is necessary to comprehensively consider the relevant risks and make a choice according to the actual situation.
Provident fund hedging is an act to reduce the borrower's repayment burden and interest payment, but we need to pay attention to its possible risks. The borrower should carefully consider his own situation and decide whether to hedge the provident fund according to actual needs.
Legal basis:
Article 26 of the Regulations on the Management of Housing Provident Fund stipulates that employees who have paid housing provident fund can apply for housing provident fund loans from the housing provident fund management center when purchasing, building, renovating or overhauling their own houses. The housing provident fund management center shall make a decision on whether to grant loans within 15 days from the date of accepting the application, and notify the applicant; Where a loan is granted, the entrusted bank shall go through the loan formalities. The risk of housing provident fund loans shall be borne by the housing provident fund management center.