Most employees want to pay the provident fund in the five insurances and one gold, but at present, the compulsory payment of five insurances by the state will naturally reduce the number of enterprises that help employees pay the provident fund. Usually provident fund loans refer to loans enjoyed by employees who pay housing provident fund. As long as the user meets the requirements of the provident fund payment period, he can apply for a provident fund loan from the bank.

Do you need to pay interest for prepayment of provident fund?

The prepayment of provident fund requires repayment of interest, but users who prepay only need to prepay the accrued interest of the loan principal from the interest settlement date of last month to the prepayment date. There is no need to repay the interest that has not yet been generated, just pay off the remaining principal. In other words, there is no need to pay liquidated damages for withdrawing the provident fund in advance. Users who choose to prepay in part or in whole only need to repay the remaining principal and interest before the agreed date.

Generally speaking, the prepayment of provident fund needs to repay the interest that has already been generated, and does not need to repay the interest and liquidated damages that have not yet been generated. For customers of provident fund loans, they can choose to repay part or all of the principal and interest of provident fund loans in advance, and the interest is calculated on a daily basis from the loan date. The state also promotes provident fund loans to reduce the burden on loan workers. Employees can apply for provident fund loans as long as they have paid their contributions continuously for six months.