The interest rate of provident fund loans is still subject to the previous standards. The loan term is less than 5 years, including 5 years, the loan interest rate is 2.75%, the loan term is more than 5 years, and the loan interest is 3.75%. Compared with the loan interest rate of commercial banks, the loan interest rate of provident fund is relatively low. Due to different loan methods, the loan interest generated under the same interest rate is also different.
What are the repayment methods of housing provident fund?
1, provident fund repayment: this repayment method, the interest rate will be much lower, and the repayment method is more flexible, which is certainly not suitable for commercial loans.
2. Equal principal and interest repayment method: This method is particularly common in several ways to repay mortgage loans, and the total amount of principal and interest to be repaid every month is the same. The total amount includes the principal and interest that should be borne, and the monthly repayment amount is fixed within the selected repayment date. You just need to deposit a fixed date in the bank account and repay the loan every month.
3. Equal principal repayment: the biggest feature is that the burden is from heavy to light. The loan amount is evenly distributed to the monthly repayment amount, and the interest is the interest generated by the loan balance between the previous repayment date and the current repayment date. The principal to be repaid every month is constant and the interest is decreasing, so the total amount to be repaid every month is decreasing. In this way, the burden of repayment will become smaller and smaller, but you should know that the burden of repayment at the beginning is relatively large.
4. Fixed interest repayment: users who adopt this repayment method do not have to bear the risks brought by floating interest. In other repayment methods, once the bank adjusts the interest rate, the loan interest rate will change, and if it rises sharply, it may need to pay high interest. The use of fixed interest rate repayment can effectively avoid the risk of interest rate rise caused by excessive price growth or other factors, but the fixed interest rate locks in the risk of interest rate rise. Among several ways to repay mortgage loans, the interest rate is generally higher than the current interest rate.