The longer the loan period of provident fund, the smaller the monthly pressure and the more interest paid. The shorter the loan term, the greater the monthly pressure, and the less the interest paid. Therefore, it is not that the longer the term of provident fund loans, the better. It should be based on special circumstances. Property buyers should judge according to their own situation when choosing the term of provident fund loans.

How to borrow provident fund loans is the most cost-effective?

1. Generally speaking, the provident fund is divided into two repayment methods: principal amount and principal amount. Under the condition of constant loan interest rate, the repayment method in average capital will save more interest than the repayment method of equal principal and interest. As a welfare housing loan, the provident fund loan policy has not changed. Not only can you make a down payment of 20%, but you can also enjoy a provident fund interest rate of 3.87%, which is lower than 30%. Therefore, choosing average capital as provident fund loan will save more interest.

2. There are two ways to repay the loan with the balance of the provident fund account. One way is "annual repayment", and the loan principal is directly offset by the account balance in April or September every year. The other is "monthly payment", in which the balance in the account is used to repay the repayment amount of the current month (the principal and interest are paid together). Most people think that it is more cost-effective to write off the principal in one year, thus saving more loan interest. In fact, last year's snapping up may be really uneconomical.

3. The specific loan of provident fund loan is cost-effective for several years, which we have to judge according to our actual situation, such as the type of house or the age of the borrower. If you consider inflation, in general, I suggest you choose 30 years.

Prepayment procedures for provident fund loans

1. First check the balance of the provident fund account and the balance after the loan is repaid, calculate the repayment difference initially, and then prepare enough cash.

2. Then the borrower goes to the housing provident fund management center to receive the application materials and application forms for early repayment.

3. Find the accounting personnel of the unit, fill in the application materials and affix the official seal of the unit, the personal seal of the top leader and the accounting personnel.

4. Return the materials to the Housing Provident Fund Management Office, go through the formalities of withdrawing the provident fund after being audited by the staff, and receive the notice of withdrawing the provident fund.

5. With the notice of withdrawal of provident fund issued by the Housing Provident Fund Management Office, go to the loan bank for repayment procedures.