Provident fund loans can shorten life, and it is also possible to repay loans in advance.

Procedures for repaying the loan in advance:

According to bank regulations, customers need to submit a written application one week to one month in advance to agree on the repayment date;

Then, according to the agreed date, bring your ID card and the loan contract signed with the bank to the bank to fill in the loan repayment application form and prepayment agreement, and deposit the money to be repaid into your account for withholding the loan principal and interest according to the requirements of the bank;

Automatic bank deduction;

There is no limit to the number of times a bank repays the loan in advance, and it can pay off the loan in whole or in part.

Some lenders who repay the loan in advance can choose two ways:

Reduce the monthly repayment amount and keep the repayment period unchanged;

Shorten the repayment period and keep the monthly repayment amount unchanged;

Once the application form for prepayment is confirmed by the borrower's bank, it is irrevocable. As a supplementary clause of the loan contract, it has the same legal effect as the loan contract.

Second, can provident fund loans shorten the repayment period?

Yes, but certain conditions must be met. After one year of repayment, as long as the repayment ability meets the requirements of shortening the repayment period, the borrower can apply. Moreover, both portfolio loans and pure provident fund loans can apply for shortening the repayment period. The borrower only needs to apply to the entrusted mortgage bank, and after the application is successful, he can withdraw the housing provident fund according to the new monthly repayment amount. Preferential interest rate for provident fund loans: With the same loan amount and repayment period, provident fund loans can save tens of thousands of yuan in interest compared with commercial loans. Take a 400,000 house as an example, with a loan of 280,000. If the term of the commercial loan is 25 years, the monthly repayment is 172 1 yuan, and the total repayment for 25 years is 5 16300 yuan, and the total interest paid is as high as 236,300 yuan. It is also a provident fund loan with a term of 25 years, with a monthly repayment of 1.548 yuan. The total repayment in 25 years is 464,400 yuan, and the total interest paid is 1.8444 million yuan. Compared with commercial loans, the monthly payment can be reduced by 1.73 yuan, and the interest expense can be saved by nearly 5 1.90 yuan in 25 years. With the same loan amount and the same repayment amount, compared with commercial loans, provident fund loans not only have shorter repayment time, but also have much less repayment interest. Similarly, if the loan of 280,000 yuan is repaid with the same amount 172 1 yuan/month, the commercial loan will be repaid for 300 months, totaling 5 16300 yuan, with interest of 236,300 yuan. The provident fund loan is repaid to 25 1 month, that is, 2 1 year, and all the principal and interest have been paid off, with a total repayment of 4,30715 yuan, and the interest paid is only 1507 15 yuan, which is 85,585 yuan less than that of commercial loans. Provident fund loan repayment is more convenient and flexible: with provident fund mortgage loan to buy a house, the bank's repayment method will be more flexible than commercial loans. The borrower can determine the monthly repayment amount by himself, provided that the monthly repayment amount is not lower than the minimum repayment amount stipulated by the bank. In this way, the borrower can make a reasonable and feasible repayment plan according to his own economic strength, which is convenient for the borrower to arrange his monthly economic expenditure. For prepayment of provident fund mortgage loan, the borrower can repay part or all of the loan principal and interest in advance without paying any liquidated damages. However, if the borrower chooses commercial loans, the repayment method of bank loans is not so flexible. For commercial loans, there are only two ways to prepay, one is to prepay in one lump sum, and the other is to prepay in multiples of ten thousand. Provident fund loans have fewer restrictions on purchased real estate: major commercial banks have more restrictions on second-hand housing loans, and it is difficult for banks to apply for housing loans for second-hand housing that is too old, has a bad location and has poor liquidity. However, for the purchase of houses with provident fund loans, banks have relatively few restrictions on the age of second-hand houses. Second-hand housing age and housing loan life add up to less than 50 years, you can apply for provident fund mortgage loans.

3. How many times can the repayment period of the provident fund be extended?

Once, the repayment period of the provident fund loan can be changed. If the individual's repayment ability is insufficient and difficult to afford, he can also apply for an extension of the repayment period.

To modify the repayment period of provident fund loans, the following conditions shall be met:

1. The borrower repays normally for more than one year, with no overdue repayment and good reputation.

2. The borrower can provide proof that the income can meet the repayment ability after the loan term is shortened, and there is no bad repayment record.

3. The borrower can provide the explanation materials that can't repay the loan on time and agree to change the collateral.

4. Can provident fund loans shorten the repayment period?

Legal analysis: Yes. There are generally two ways to apply for shortening the repayment period. First, whether it meets the requirements depends on the number of years people expect to shorten, such as reducing the information submitted by the people. The second is the amount of monthly payment expected by the public. For example, the monthly payment is changed to 4,000 yuan, which is also calculated by the bank according to the personal situation of the citizens.

Twenty-sixth workers who have paid the housing provident fund to purchase, build, renovate or overhaul their own houses shall apply for housing provident fund loans. Make a decision on whether to lend or not within 0/5 days after the public housing starts, and notify the applicant to go through the loan procedures. The risk of housing provident fund loans shall be borne by the housing provident fund management center.