Housing provident fund loans or bank loans

If you can use provident fund loans, you'd better choose provident fund loans. Provident funds can be used to offset part of the down payment when buying a house. The provident fund should be paid every month, and according to the current regulations of the country, the amount of the provident fund paid every month is 5%-12% of the base of the provident fund deposit. Units and individuals should pay this provident fund every month, and the proportion of the deposit is determined by the unit. At present, the benchmark interest rate of commercial bank loans to buy a house is 4.9%, which has recently increased by 15%-2% on average. Therefore, the interest rate of commercial bank loans to buy a house is very high. In contrast, the interest rate of provident fund loans to buy a house is only 3.75%. Article 26 of the Regulations on the Management of Housing Provident Fund, employees who pay 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, within 15 days from the date of accepting the application, make a decision on whether to grant or not to grant loans, and notify the applicant; If the 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.

what's the difference between provident fund loans and bank loans?

the main difference between provident fund loans and bank loans is that the interest rate of provident fund loans is lower than that of bank loans. Provident fund loans require users to pay provident fund continuously before they can apply, while bank loans can apply as long as they meet the threshold of bank loans, which is higher. Moreover, the funds of provident fund loans can only be used for buying houses, and the funds of bank loans can be used for consumption, business and other purposes.

Therefore, there are obvious differences between provident fund loans and bank loans, and users can clearly distinguish them.

differences between provident fund loans and commercial loans

1. What are the differences between provident fund loans and commercial loans

1. The differences between provident fund loans and commercial loans are as follows:

(1) The loan targets are different. Provident fund loans refer to loans enjoyed by employees who have paid housing provident fund. Commercial loans, also known as personal housing loans, are loans provided by commercial banks and housing savings banks approved by the People's Bank of China for urban residents to purchase ordinary housing for their own use;

(2) The loan interest rate is different. The benchmark interest rate of commercial loans for more than 5 years is 4.9%, which is based on the mortgage interest rate of the lending bank. The interest rate of housing provident fund loans for more than 5 years is 3.25%.

(3) The scope of application is different. Commercial loans can be used for residential houses and non-residential houses, but provident fund loans can only be used for individuals to buy residential houses.

2. Legal basis: Article 2 of the Regulations on the Management of Housing Provident Funds

These Regulations are applicable to the deposit, withdrawal, use, management and supervision of housing provident funds in the People's Republic of China.

the housing accumulation fund mentioned in these regulations refers to the long-term housing savings paid by state organs, state-owned enterprises, urban collective enterprises, foreign-invested enterprises, urban private enterprises and other urban enterprises, institutions, private non-enterprise units, social organizations (hereinafter referred to as units) and their employees.

article 6

the deposit and loan interest rate of housing provident fund is proposed by the people's bank of China, and submitted to the State Council for approval after consulting the construction administrative department of the State Council.

2. What are the requirements for applying for provident fund loans

1. Have a permanent residence in this city or other valid residence status, and have full capacity for civil conduct;

2. When a legal and effective house purchase contract or agreement is signed, the down payment shall be paid according to the specified proportion;

3. The ability to repay the loan principal and interest on time, as well as a stable occupation and income;

4. You can only apply for a loan after paying the housing provident fund in full for 6 months.

5. Personal credit is good;

6. There are no other large debts that can affect the repayment ability of the loan;

7. The monthly expenditure not higher than 5% of the family's monthly income is used to repay all kinds of housing loans including the individual housing provident fund loan to be applied for, and the monthly income of the family is not lower than the minimum living guarantee standard of this Municipality after deducting the monthly repayment expenditure;

8. Other conditions that meet the provisions of national laws and regulations.

What's the difference between provident fund loans and bank loans

1 The loan targets are different: provident fund loans are for employees who have paid housing provident fund, while bank mortgage loans are for all people, and they can apply for housing loans if they meet the corresponding loan conditions.

2 the loan process is different: the provident fund loan is applied to the housing provident fund management center, and then distributed through the commercial bank, and the bank is only the executing agency. The bank's mortgage loan is applied to a commercial bank, and the decision is in the bank.

3 loan interest rates are different: the interest rate of provident fund loans is generally lower than that of bank mortgage loans, because provident fund loans are policy loans, while bank mortgage loans are commercial loans that need to be profitable.

4 different sources of loans: the main source of funds for provident fund loans is the housing provident fund paid by the insured employees, while the funds for bank mortgage loans come from deposits or other wealth management funds.

Bank loan refers to an economic behavior in which banks lend funds to those in need of funds at a certain interest rate according to national policies, and return them within an agreed time limit. Generally, guarantee, house mortgage, proof of income and good personal credit information are required before you can apply.

application conditions

conditions required by the borrower

1. Natural persons aged 18-6 (Hong Kong, Macao, Taiwan, mainland China and foreigners are also allowed)

2. Have a stable job and a stable income. The ability to repay the loan principal and interest on schedule

3. The actual age of the borrower and the loan application period should not exceed 7 years old

The materials that the borrower should provide

1. The husband and wife's ID card, household registration book/temporary residence permit and household registration book for foreigners

2. Marriage certificate/divorce certificate or judgment/ 2 copies of single certificate

3. Income certificate (in the format specified by the bank)

4. Copy of business license of the unit (with official seal)

5. Credit certificate: including academic certificate, other real estate, bank running water, large deposit certificate, etc.

6. If the borrower is an enterprise legal person, it must also provide the annual business license, tax registration certificate, organization code certificate, etc.

Note: Starting from May 1th, 21, the loan for purchasing a house in Beijing by a nonlocal household registration must also provide a tax payment certificate for nearly one year or a social security certificate for one year, and other materials that can prove that they have worked in Beijing for one year.

The house seller should provide materials

1. Identity card of husband and wife, household registration book, marriage certificate (marriage certificate or single certificate)

2. Real estate license

Special circumstances

Information required for foreigners to buy a house:

Taiwan Province people-mainland travel permit (Taiwanese certificate), household registration vine (provable). Mortgage notarial deed (entrusted to handle the late-stage house ownership and mortgage registration)

Hong Kong people-Hong Kong identity card, marriage certificate, mortgage notarial deed (entrusted to handle the late-stage house ownership and mortgage registration)-Korean people-notarization of Chinese translation of passport, Chinese translation of name and Chinese translation of household registration (which can prove marital status), Certificate of mortgage (entrusted to handle the late-stage house ownership and mortgage registration)

Other nationalities-notarization of Chinese translation of passport, notarization of Chinese translation of name, notarization of Chinese translation of marriage certificate, notarization of mortgage (entrusted to handle the late-stage house ownership and mortgage registration)

The seller needs to provide information for the enterprise:

Legal person ID card, original and duplicate business license, organization code certificate, resolution of the board of directors on sale, and articles of association. Proof of collection account (all the above materials need to be stamped with official seal) and real estate license

This concludes the introduction of provident fund loans, bank loans and repayment of provident fund loans. I wonder if you have found the information you need?