Using provident fund loans is a more cost-effective way to borrow money. It is convenient and can ease the family's financial expenses. So how long does it take for provident fund loans to be disbursed? What are the procedures for applying for provident fund loans? Let’s learn about it.
1. Provident Fund loan disbursement time
Under normal circumstances, it takes about 1 to 3 months from the application for a Provident Fund loan to the time of approval to disbursement. Most regional governments require that provident fund loans be issued only after the completion of the main project of commercial housing, resulting in a delay in the provident fund loan disbursement cycle. Therefore, many developers will recommend home buyers to choose commercial loans. However, there are differences in provident fund loans across regions, and the lending cycle in many first-tier cities has been greatly shortened. For example, Guangzhou, Shanghai and other provinces and cities have basically realized the rapid disbursement of provident fund loans. Normal disbursement of provident fund loans can generally be realized within 7 to 20 days after approval.
2. Provident Fund Loan Process
1. Go to the management department of the local Provident Fund Management Center to apply for a Provident Fund loan. You need to submit application materials: ID cards, household registers, and marriage certificates of the individual and his spouse. (or divorce certificate), proof of down payment for house purchase, house purchase contract, housing provident fund payment certificate, etc.
2. The Guarantee Center will review the lender's application. If the guarantee conditions are met, the Guarantee Center will issue a "Guarantee Application Approval Letter"; if the lender entrusts an intermediary agency to handle the provident fund loan, the agency will Responsible for acting as an agent and collecting guarantee service fees.
3. The Guarantee Center issues an invoice for the guarantee service fee, and stamps the official seal on the approved legal documents such as the "Mortgage (Counter Guarantee) Contract", "Loan Contract", and "Receipt Contract".
4. The Guarantee Center forwards the borrower information to the Housing Provident Fund Management Department.
5. The housing provident fund management department signs and releases the loan.
The above is the usual process in general areas. If you want to know more about the detailed process of provident fund loans, you can contact the local provident fund center directly, and they will give you a careful and comprehensive answer.