1. Commercial loans

From the current point of view, more people choose commercial loans to buy houses, because this method has a high loan amount, no special restrictions on applicants, and the procedures Easy. However, commercial loans also have some disadvantages, the most important of which are "high loan interest rates and high down payment requirements."

2. Provident Fund Loans

The biggest advantages of Provident Fund loans are: low loan interest rates and low down payment requirements. However, its loan procedures are more complicated, and only provident fund-paying employees who have paid provident funds at the local housing provident fund center for a certain period can apply, and this kind of loan can only be used to purchase ordinary housing. In addition, some real estate projects do not accept provident fund loans because the approving procedures are complicated.

The main differences are as follows:

Loan interest rates: In addition to the provident fund loan interest rate being fixed, the actual interest rates implemented by various banks in each region will rise or rise slightly. For discounts, you need to check with your local bank branch.

Loan ratio: For the same house, if the commercial loan is for the first home, the loan can be 70%, then the pure provident fund loan for the first home can be up to 80%.

Loan process: For commercial loans, the loan must be reviewed before the transfer is completed, and for provident fund loans, the loan must be reviewed after the transfer is completed.

Approval time: Commercial loans take about 20 working days, provident fund loans take about 40 working days, commercial loans are faster than provident fund loans.

Loan sources: The source of commercial loans is mainly public funds raised by commercial banks and other lending institutions, while provident fund housing loans are funds paid by provident fund collectors.

Users: Commercial housing loans are open to all eligible members of the public, while provident fund loans are only open to provident fund payers.

Use of interest: The interest on commercial housing loans is the profit from business activities and belongs to the relevant investors, while the interest on the provident fund has a policy-specified purpose and can only be used for the construction of affordable housing.

Approval agencies: Commercial housing loans are mainly approved by banks, and the decision-making power rests with the bank; provident fund housing loans need to be approved by the provident fund management center, and the decision-making power rests with the provident fund management center, and the bank is only the execution agency.

Term and amount: Different banks and different city provident fund management centers have different regulations. Generally speaking, commercial loans can choose longer and more flexible repayment periods and higher amounts.

Second home loans: Commercial loans have more policy restrictions on second home loans and have higher interest rates; while provident fund loans are basically not affected by policies on second home loans and can also enjoy preferential interest rates.

I hope the above content is helpful to you.