Owned by individuals. The housing provident fund paid by individual employees and the housing provident fund paid by the unit for them are stored in special accounts and belong to the individual employees. No unit or individual may misappropriate the housing provident fund. Anyone who constitutes a crime must be held criminally responsible in accordance with the law.

Funds can be doubled. Individual employees contribute within the range of 5 to 12% of their salary, and the unit subsidizes it in the same proportion. Therefore, after individual employees contribute to the housing provident fund in accordance with regulations, their funds will be doubled.

Mobile interest calculation. According to relevant national regulations, June 30 of each year is the interest settlement date of the housing provident fund. The housing provident fund paid by the unit and employees has the characteristics of "interest compounding and interest accruing". The housing provident fund paid and deposited in the current year will be paid interest based on the current interest rate announced on the market; the principal and interest of the housing provident fund carried forward from the previous year will be paid interest based on the announced three-month lump sum deposit interest rate, and deposit interest income is exempt from personal tax. Income Tax.

Enjoy tax exemption. According to relevant national regulations, housing provident funds are exempt from income tax. The housing provident fund paid by an enterprise for its employees can be included in costs and expenses as a deduction for corporate income tax.

Can be withdrawn in advance. Employees who purchase, construct, renovate, or overhaul self-occupied housing with independent property rights, or suffer from serious diseases that cause life difficulties, or enjoy urban minimum living security benefits, etc., can withdraw housing provident funds in advance with relevant legal and valid certification materials.

You can apply for a loan. Employees who have paid the housing provident fund in full for more than one year can apply for a housing provident fund low-interest loan that is more favorable than commercial bank loan interest rates during the same period, as long as they comply with relevant loan policies and provide complete relevant information when purchasing and building a self-occupied house. .

Save money. Using a housing provident fund loan not only saves money than using a commercial housing loan, but also has many advantages such as a longer loan term and flexible repayment.

The loan can be repaid in advance. Prepayment can be made after six months of normal repayment of housing provident fund loans. You can repay part of the loan in advance or pay it off in full. No penalty will be charged for early repayment.

Can be used as a pension. After employees retire, with relevant certification materials such as retirement, they can withdraw the entire principal and interest balance of the housing provident fund in one go. This is equivalent to accumulating a considerable pension for each employee, which can protect the quality of life in their later years.

How to repay the monthly payment for a provident fund loan?

1. Automatic deduction

After applying for a provident fund mortgage, the borrower can choose automatic deduction to repay the monthly payment. for. The provident fund automatic deduction can only be successfully deducted when the balance of any one of the three accounts, the provident fund account of the primary lender, the provident fund account of the auxiliary lender, and the repayment card, is greater than or equal to the principal and interest of the loan that should be repaid. As long as there is enough balance in the account, the required fees can be automatically deducted every month, and there is no need to be reminded to repay every month.

2. Offset loan

Housing provident fund offset loan refers to entrusting the balance in a personal provident fund account to a bank for monthly repayment or early repayment. There are two ways to offset a loan, annual offset and monthly offset. The annual offset method is equivalent to partial early repayment once a year, but this method gives priority to repaying the provident fund loan principal, and the monthly repayment amount needs to be paid in cash. In the monthly offset method, after the monthly principal and interest repayment of the provident fund loan is offset every month, the monthly principal and interest repayment of the commercial loan can also be offset.