At present, there are two common ways of provident fund loans: one is the equal principal and interest method; The second is the law of average capital.

The difference between the two is that the repayment method of equal principal and interest is to repay the loan principal and interest in equal amount every month, in which the ration ratio of returning principal and interest changes month by month, the interest decreases month by month and the principal increases month by month. Average capital repayment method is to repay the loan principal in equal amount every month, and the loan interest decreases with the principal month by month. Matching principal and interest and matching principal repayment methods are suitable for different borrowers, and there is no absolute advantage or disadvantage.

Repayment of principal and interest with equal amount every month is suitable for borrowers who have a stable source of family income throughout the loan period. Average capital repayment method reduces the repayment amount month by month, and the pressure to start repayment is greater than that in the later period, which is more suitable for borrowers who already have some savings, but their expected income may gradually decrease. You can choose the repayment method of equal principal. On the premise of the same loan amount, the interest on average capital is less than that on average capital and interest.

How many kinds of provident funds are there?

Provident funds are divided into three types:

1, municipal provident fund: municipal provident fund generally refers to the provident fund handled by the municipal management unit. For example, local civil servants and ordinary enterprises and institutions are all managed by the city.

2. State-managed provident fund: State-managed provident fund refers to the provident fund handled by state-managed units. For example, national civil servants and state-owned enterprises.

3. Zhongzhi Provident Fund: Zhongzhi Provident Fund is directly managed by units directly under the central government.

Provident fund refers to the long-term housing savings paid by state organs, state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises, institutions, private non-enterprise units, social organizations and their employees.

The essence of provident fund is the national housing security system for the people and a form of monetization of housing distribution. Provident fund system is an important social security system for housing stipulated by national laws, which is mandatory, mutually supportive and guaranteed. All urban workers, regardless of the nature of the work unit, family income and existing housing, must pay the housing provident fund in accordance with the provisions of the Regulations; If the unit fails to register the deposit of housing provident fund or set up a housing provident fund account for employees, the housing provident fund management center has the right to order it to handle it within a time limit. If no correction is made within the time limit, it may be punished according to the relevant provisions of the Regulations, and may apply to the people for compulsory execution; In addition to the housing provident fund paid by employees, the unit has to pay a certain amount for employees, and the interest rate of housing provident fund loans is lower than that of commercial loans; Workers retire, resign, or completely lose their ability to work, terminate their labor relations with their units, move out of their registered permanent residence or settle abroad, etc. And return the paid housing provident fund to individual employees.

What are the forms of housing loans?

* * * There are two kinds of loans, provident fund loans and commercial loans.

personal housing accumulation fund loan

Personal housing provident fund loan is a loan that employees who pay housing provident fund units to the fund management center on time in a specified period, buy or build their own houses (including second-hand houses) in this city, use their own property houses as collateral, and apply to the fund management center for guarantee by a legal person with guarantee ability. Loans can be issued by banks entrusted by the fund management center.

Personal housing commercial loan

1. Personal housing loan refers to the loan that the borrower gives to the bank with the purchased house as collateral, including the mortgage loan of forward house and the mortgage loan of existing house.

2. Personal second-hand housing loans refer to loans issued by banks to borrowers for the purchase of second-hand housing. Among them, second-hand housing refers to the housing that has obtained all property rights and can enter the secondary market of real estate for circulation and trading. The age of applying for a loan for a second-hand house is generally not more than 15 years; The sum of the loan term and the house age is generally not more than 25 years.

3. Personal housing renovation loans refer to loans issued by banks to borrowers for renovating their own houses. The maximum proportion shall not exceed 50%, and the loan period shall not exceed 5 years.

4. Personal family consumption loans refer to loans issued by banks to borrowers for family expenses. The maximum proportion shall not exceed 50% of the assessed value of the collateral, and the longest loan period shall not exceed 10 year.

5. Personal commercial housing loans refer to loans issued by banks to borrowers for purchasing personal self-operated commercial housing and self-occupied office housing. The purchased commercial house shall be an existing house, with the highest proportion not exceeding 60% and the longest loan period not exceeding 10 year.

6. Personal housing portfolio loans refer to loans composed of housing provident fund loans and housing secured loans, that is, when individuals apply for housing provident fund loans to pay the purchase price, the insufficient part applies to the bank for commercial housing loans.

Extended data:

According to the repayment method, it can be divided into two types: equal principal and interest repayment method and average capital repayment method.

Matching principal and interest repayment method is to repay the same amount of loans (including principal and interest) every month during the repayment period, so that because the monthly repayment amount is fixed, the expenditure of family income can be controlled in a planned way, and it is also convenient for each family to determine the repayment ability according to their own income.

The repayment method of equal principal is to repay the principal in equal amount every month, and then calculate the interest according to the remaining principal. Therefore, due to the large amount of principal in the early stage, the amount of repayment in the early stage is large, and then it is decreasing every month. The advantage of this method is that the early repayment amount is large, which reduces interest expenses and is more suitable for families with strong repayment ability.