It means that when applying for a provident fund loan, the bank will first issue a commercial housing loan to the borrower. The provident fund management center will provide subsidies based on the interest difference between the commercial loan and the provident fund loan. The commercial housing loan will be returned to the bank after the provident fund loan is issued. The business of lending money so that the borrower only needs to repay the principal or a small portion of the interest in accordance with the agreement.

In principle, citizens who meet the application conditions can apply for provident fund discount loans to the accepting bank, but not every bank has this business, so before applying, you can visit several banks for consultation. Down.

Not everyone can borrow a provident fund loan. The following five conditions need to be met at the same time:

1. Only employees who participate in the housing provident fund system are eligible to apply for housing provident fund loans. Employees participating in the housing provident fund system cannot apply for housing provident fund loans.

2. Those who participate in the housing provident fund system must also meet the requirements to apply for a housing provident fund personal home purchase loan, and have continuously paid and deposited the housing provident fund for no less than six months before applying for a loan.

3. If one spouse applies for a housing provident fund loan, neither spouse will be able to obtain a housing provident fund loan again before the spouse repays the principal and interest of the loan.

4. When a loan applicant applies for a housing provident fund loan, in addition to having a relatively stable economic income and the ability to repay the loan, the loan applicant must not have a large amount that has not yet been paid off, which may affect the repayment of the housing provident fund loan. capacity for other debts.

5. The maximum term of provident fund loans shall not exceed 30 years. When applying for a portfolio loan, the loan terms of the provident fund loan and the commercial housing loan must be consistent.

New regulations for provident fund loans:

1. According to the new policy (November 2014), housing provident fund loans are intended for the purchase of a first owner-occupied house or a second improved house. Employees who contribute to ordinary self-occupied housing are not allowed to issue housing provident fund personal housing loans to the families of employees who purchase a third or more homes. In 2010, relevant departments issued documents requiring the implementation of a housing provident fund loan policy that supports first homes, restricts second homes, and strictly prohibits third homes.

2. In districted cities where the housing provident fund personal housing loan issuance rate is lower than 85, the loan amount for the first owner-occupied housing can be appropriately increased based on local commodity housing prices and per capita housing area. Zhang Qiguang, director of the Housing Provident Fund Supervision Department of the Ministry of Housing and Urban-Rural Development, said that the housing provident fund loan limit is an important factor affecting the mutual assistance role of the system. Appropriately increasing the loan limit for the first owner-occupied house reflects the principle that the housing provident fund system supports basic housing consumption and fully utilizes funds.

3. All localities should realize the mutual recognition and transfer of housing provident fund payments in different places, and promote the loan business in other places. That is, the payment certificate issued by the housing provident fund management center of the place where the employee can maintain his or her employment must be provided to the housing provident fund where the employee’s household registration is. The management center applies for housing provident fund personal housing loans.