Answer: The housing provident fund system is a mandatory social security system determined by the State Council in the form of the "Housing Provident Fund Management Regulations" and is the main measure for the country to implement the monetary housing allocation policy. Housing provident fund loans, which are the main channel for the use of provident funds, must also be policy loans. First of all, the housing provident fund is a mutual-aid housing savings fund. Only employees who fulfill their obligations to contribute to the housing provident fund according to regulations can enjoy the right to use housing provident fund loans. Applicants for housing provident fund loans must be employees who have paid housing provident funds. The provident fund center will determine the loan amount according to the different payment situations of the employees of the unit. Its purpose is to supervise and restrict the normal payment of provident funds by the unit to safeguard the legitimate rights and interests of employees. Secondly, the state implements low-interest preferential policies for provident fund loans used by employees to purchase and build self-occupied housing. The People's Bank of China has established provident fund loan interest rates that are significantly lower than the operating costs of commercial funds. Third, from the perspective of the specific purpose of housing provident fund loans, the purpose of the country's establishment of the housing provident fund system is to solve the housing problem of urban employees and improve the housing conditions of employees. Therefore, it can only be used for employees to purchase, construct, renovate, and overhaul their own homes and cannot be used for other purposes. This fully reflects the policy designation and earmarked nature of the housing provident fund.