1. Bring the provident fund card and commercial loan materials to the loan bank;
2, signed the "use of housing provident fund to return the housing loan agreement";
3. The bank will automatically deduct money from the housing provident fund account on a regular basis to repay the commercial housing loan.
There are two main ways to use housing provident fund to repay housing loans:
1, one is a one-time repayment method, that is, the housing provident fund is withdrawn once a year and the loan principal is repaid once.
2, the other is the monthly repayment method, that is, the monthly withdrawal of housing provident fund to repay the loan principal and interest of the month.
3. The former is equivalent to repaying the loan in advance once a year, saving interest expenses, while the latter reduces the borrower's monthly cash expenses and reduces the financial pressure of cash flow.
There is no difference between the two methods, and the borrower needs to choose according to his own situation. But no matter which way, it is to use the housing provident fund as much as possible to improve its repayment ability and facilitate the arrangement of financial and repayment plans. This is actually a manifestation of improving the self-occupation ability and housing consumption level.
In fact, the simplest way is to withdraw the money from the provident fund every year and then repay the commercial loan.