Many prospective home buyers are preparing for provident fund loans, which is a really good choice compared to commercial loans. Provident fund loans not only have low interest rates, but can also make full use of the provident fund balance paid into the provident fund account for many years. Today, the editor is here to share the relevant knowledge about provident fund loans.

So, what is the process of provident fund loan?

(1) Submit information

When the borrower applies for a provident fund loan at the management department of the provident fund management center where the provident fund is deposited, and chooses the guarantee center to provide guarantee, the borrower should submit a guarantee application including: All required materials for personal loan application, including personal and spouse’s ID cards, household registers, marriage certificates, divorce certificates, house purchase down payment certificates, house purchase contracts, housing provident fund payment certificates, etc.

(2) Review Notice

After the management department passes the preliminary review of the loan application, it will issue a "Guarantee Application Review Notice" and print out the "Loan Contract" and "Mortgage (Counter Guarantee)" Contract" and other relevant legal documents, and submit all personal loan information to the guarantee center.

(3) Approval

The Guarantee Center will review the guarantee application. If the borrower meets the guarantee conditions, the Guarantee Center will issue a "Guarantee Application Approval Opinion"; the borrower will entrust an intermediary agency to handle the application. For provident fund loans, the agency is responsible for the guarantee application procedures and collects the guarantee service fee. (Note: The agency agency must have the qualification certification of the Beijing Housing Provident Fund Management Center and sign a cooperation agreement with the guarantee center.)

(4) Payment

The borrower shall pass the review based on Pay the guarantee service fee according to the "Guarantee Application Approval Opinion". The Guarantee Center issues invoices for guarantee service fees, and stamps the official seal of the Guarantee Center on approved legal documents such as the Loan Contract, Mortgage (Counter Guarantee) Contract, and Collection Contract.

(5) Material transfer

The reviewed personal loan application materials (including the stamped contract) will be forwarded by the Guarantee Center to the Housing Provident Fund Management Department; if an intermediary agency is entrusted to handle it, The intermediary agency is responsible for the transmission of the above information.

(6) Signing the contract

The Housing Provident Fund Management Department supervises and guides the borrower applicants to sign on the "Loan Contract", "Mortgage (Counter Guarantee) Contract" and other relevant legal documents.

The establishment of the employee housing provident fund is a measure to implement the reform of the housing system in my country. The purpose is to jointly bear the burden of the state, collectives and individuals to solve the housing difficulties of employees. The housing provident fund refers to the long-term housing savings deposited by state agencies, state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises, institutions and their employees. According to regulations, all employees who have contributed to provident funds have the right to enjoy such loans and can apply for provident fund loans in accordance with the relevant provisions of provident fund loans.

What are the advantages of provident fund loans compared with ordinary loans?

(1) Convenience and processing time are almost the same.

(2) Commercial loans generally do not have a loan limit or have a very high limit. Borrowers can directly apply for higher loan amounts. Housing provident fund loans have upper limit controls, but high-amount loan needs can be through combination loans. solve.

(3) Commercial loans have a wide range of loan targets, and housing provident fund loans are generally housing provident fund depositors.

(The above answer was published on 2015-10-22, please refer to the actual relevant current home purchase policies)

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