The difference is that the interest of provident fund loans is lower than that of bank loans.
Withdrawing money means taking out your own money. After you buy a house with a loan (or you can pay it in one lump sum without a loan), you can withdraw money from your provident fund account to repay the loan. But I only mentioned the amount in the account, the money I paid in with the company.
A provident fund center is equivalent to a large mutual aid group. Everyone involved will put some money in every month, such as 1 ,000 people, and each person will deposit 1 ,000 yuan every month (the company also deposits 1 ,000 yuan), and the account will be deposited in 200 yuan every month. Then this group of people will put 2 million yuan into the corporate account every month and 24 million yuan a year. Because it is a mutual aid group, unlike banks, which are profit-making organizations, the interest on money lent by provident fund centers will be relatively low.
You may say, a group of 10000 people buy a house every year, does it take 100 years for everyone to enjoy the welfare? Impossible, right? In fact, it is really impossible, because each of us has saved less than 100 yuan. But there are quite a few people who have participated in the provident fund, but they have never bought an apartment in their lives, and then they will take out their money directly after retirement.