The principal and interest extraction of provident fund loans refers to the behavior that employees can extract the balance stored in their personal housing provident fund accounts in order to repay the loan principal and interest during the process of repaying housing provident fund loans. Specifically, when employees purchase houses through housing provident fund loans and repay them on schedule, they can apply to the housing provident fund management center in accordance with relevant regulations to extract the storage balance in the individual housing provident fund account for paying the loan principal and interest.

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First, the meaning of provident fund loan principal and interest extraction

The principal and interest extraction of provident fund loans is an important policy in the housing provident fund system. It allows eligible employees to withdraw the balance from their personal housing provident fund accounts to repay the principal and interest of housing loans. The policy aims to reduce the repayment pressure of employees and help them better realize their housing dreams.

Two, provident fund loan principal and interest extraction conditions

To apply for the withdrawal of principal and interest of provident fund loans, employees must meet the following conditions:

Repayment for more than one year from the date of loan issuance;

No expected behavior during the repayment period;

Withdraw the repayment amount during the repayment period when the applicant has no expected behavior and the balance of the provident fund account is not less than one year.

Three, provident fund loan principal and interest extraction process

Employees need to apply to the local housing provident fund management center for withdrawal, and submit the following materials: ID card, housing provident fund joint card, house purchase contract or agreement, loan contract, bank repayment record, etc. The management center shall review the application materials, and after approval, the withdrawal amount shall be included in the employee housing provident fund joint card.

Four, the impact of provident fund loan principal and interest extraction

Withdrawing the principal and interest of provident fund loans has the following effects on employees:

Reduce the repayment pressure: By withdrawing the storage balance in the housing provident fund account, employees can reduce the monthly repayment pressure.

Improve the utilization rate of funds: the housing provident fund can be used for other purposes to improve the utilization rate of funds. For example, it can be used in home decoration, children education and so on.

Reduce the loan risk: For the housing provident fund management center, allowing employees to withdraw housing provident fund for repayment of loans can reduce the loan risk. Because the extracted housing provident fund is equivalent to the employee repaying part of the loan principal and interest in advance, thus reducing the future repayment pressure and possible default.

To sum up:

The withdrawal of principal and interest of provident fund loans is an important policy in the housing provident fund system, which allows eligible employees to withdraw the balance stored in individual housing provident fund accounts to repay the principal and interest of housing loans. The policy aims to reduce the repayment pressure of employees and help them better realize their housing dreams. At the same time, for the housing provident fund management center, this policy can also reduce the loan risk and improve the utilization rate of funds. However, it should be noted that the application for principal and interest withdrawal of provident fund loans needs to meet certain conditions and submit relevant materials. Employees should understand relevant policies and processes before applying, ensure that they meet the requirements and prepare necessary materials.

Legal basis:

Article 25 of the Regulations on Housing Provident Fund stipulates that during the repayment of housing provident fund loans, employees can withdraw the balance stored in individual housing provident fund accounts for repayment of loan principal and interest. Specific measures shall be formulated by the people's governments of municipalities directly under the central government, cities divided into districts and counties.