Entrusted deduction of provident fund repayment means that the borrower of provident fund loan and his spouse authorize the housing provident fund management center to deduct their housing provident fund deposits once a month or every year and directly return the provident fund loan by signing the Power of Attorney for Entrusted Deduction of Housing Provident Fund Loan. There are two types and three ways to choose from:

(1) Monthly deduction repayment method.

(2) Deduction and repayment year by year-reducing the monthly payment.

(3) Deduction and repayment year by year-shortening the term. The borrower and spouse must choose the same entrusted deduction method to repay the loan.

2, provident fund entrusted deduction object and application conditions.

Borrowers and their spouses who have paid the provident fund in the provident fund management center and have outstanding provident fund loans may apply for entrusted deduction of the provident fund. The application conditions for entrusted deduction are:

(1) The customer's housing provident fund deposit account has not entered the state of centralized custody, freezing and account cancellation;

(2) The bank savings repayment account that agreed with the lending bank to repay the provident fund loan has successfully deducted repayment 1 time or more in Wuhan Housing Provident Fund Information System (including 1 time).

Extended data:

Entrusted withholding of provident fund means that the applicant for provident fund loan will deduct the amount of provident fund account into the repayment account of personal bank through the entrusted bank, thus simplifying the repayment process of provident fund loan.

When applying for a provident fund loan, in order to facilitate future repayment, the applicant signed a provident fund withholding repayment agreement with the provident fund management center and the entrusted bank. After this agreement comes into effect, the entrusted bank will deduct the repayment amount of the lender in the current month from the designated provident fund account at about 10 every month from the second month of repayment, so as to offset the provident fund loan.

If the bank deducts money successfully, the provident fund management center will record the repayment of the provident fund loan applicant in time. If the monthly repayment amount of the lender's provident fund account is less than the payable amount, the lender needs to deposit the difference into the personal bank repayment account of the entrusting bank to make up for it.

If the lender fails to repay the provident fund loan in time, the management center will record that the current period is overdue, and the borrower will pay more penalty interest when returning.

References:

Baidu Encyclopedia-Entrusted Withholding Provident Fund