There are two repayment methods for provident fund loans: equal principal and interest repayment method and average capital repayment method. The borrower can choose one of them at will when registering the loan. After the repayment method is selected, it cannot be changed during the lease term. Equal principal and interest repayment method: that is, the borrower repays the loan interest in equal amount every month.
Average capital repayment method: namely, the borrower's monthly repayment cost of equal principal and interest plus current repayment interest, with the loan interest decreasing month by month and the total interest decreasing month by month. Note: During the loan period, if the loan meets the specified standards, you can repay the loan in advance or apply for a one-time prepayment loan.
The balance of the provident fund is offset by 1, which is offset by monthly repayment. This method allows everyone to take out the assets in the personal provident fund from the bank to repay the loan on a monthly basis. In other words, the provident fund deposited into the account every month can be used to repay the monthly loan, and the account balance can only be replenished if it is insufficient.
2. Nianchong. Annual mortgage means that you can use the balance of your personal provident fund account to offset the provident fund loan once a year, and you have completed part of the prepayment. However, under the premise of applying for portfolio loan, the borrower must repay the cost of provident fund loan with the balance of personal provident fund before repaying another part of commercial loan.
Repayment method of provident fund loan 1. If the borrower finds that he has a large amount of provident fund balance in the subsequent repayment process when applying for provident fund loans. You can choose to apply for a one-time repayment, so that the funds in the provident fund account can offset the cost of the loan, which can reduce the interest cost of the loan.
2. If the account balance in the borrower's personal provident fund is too small, try not to choose the form of early repayment in the subsequent repayment process. Because the preferential annual interest rate in the process of provident fund loans can help borrowers save a large part of interest expenses. Therefore, if the repayment is made in advance, the repayment amount offset by the personal provident fund is small, and the cost to be spent is high, which is not cost-effective.
Can the provident fund only be used twice in a lifetime? According to relevant laws and regulations, provident fund loans can be used twice in a lifetime. That is, you can use it once the first time, once the second time, and you won't use it again. If the first two housing provident fund loans are useless, the third one can't be used, and the provident fund loans are only related to the first two. Moreover, if it is a family-based provident fund loan, there are only two opportunities, that is, both husband and wife form a loan at home.
The second provident fund loan needs to be applied after the first provident fund loan is settled. In fact, there is only one loan at the same time, and the next loan can only be made after the repayment is completed. Moreover, the time for continuous full deposit before applying for provident fund loans should not be less than 6 months, and the law in some big cities should not be less than 12 months. Therefore, if you want to apply for provident fund loans, you must understand the premise of provident fund loans.