When applying for a loan, the provident fund account must be in the state of deposit, that is, not suspended. Therefore, you can only apply for provident fund loans if you have paid for more than six months continuously, depending on local policies. Normal deposit refers to continuous monthly deposit, prepayment and supplementary payment of housing provident fund. It should be noted that the time to pay the housing provident fund cannot exceed three months. When a user applies for a provident fund loan, the balance of the provident fund account is not deducted, and the funds issued by the loan are the unused provident fund in the housing provident fund account. However, users can apply for provident fund hedging business and repay provident fund loans with the balance of provident fund accounts.

The Influence of Provident Fund on loans overdue;

1. Suspension of withdrawal of provident fund: during the repayment period, if the lender is overdue, the provident fund center will suspend withdrawal of provident fund until the loan is repaid normally;

2. Charge overdue interest: if the provident fund is overdue, you need to pay a penalty interest of 50% of the loan interest rate;

3. Long-term overdue will deal with collateral: non-malicious long-term overdue, banks can use real estate auction to make up for the loss of the provident fund center;

4. Affect the credit of the guarantor: provident fund loans often need to provide a guarantor. When the lender is overdue, the credit of the guarantor will also be affected;

5. Bad record: The overdue record of provident fund in loans overdue will be uploaded to the People's Bank for credit investigation, which will have a great impact on future loan applications.

To sum up, most people are willing to choose provident fund loans because the loan cost is lower than that of commercial loans. However, because of the long loan period, it is easy to overdue if there is temporary economic difficulty.

Legal basis:

Article 26 of the Regulations on the Management of Housing Provident Fund

Workers who have paid housing provident fund can apply for housing provident fund loans to the housing provident fund management center when purchasing, building, renovating or overhauling their own houses.

The housing provident fund management center shall make a decision on whether to grant loans within 15 days from the date of accepting the application, and notify the applicant; Where a loan is granted, the entrusted bank shall go through the loan formalities.

The risk of housing provident fund loans shall be borne by the housing provident fund management center.