Many companies are buying provident fund for their employees, but some people don't know much about the relevant knowledge of provident fund, and they don't know what the role of provident fund is. They just deduct some money from their wages every month. In fact, provident fund has many functions, not just for buying housing loans. If you can understand the definition of provident fund, I believe everyone can use it reasonably. Today, Xiaobian will tell you about what personal provident fund is. What's the use of provident fund?

What is personal provident fund

The personal provident fund system is actually a national housing security system for the people and a form of monetization of housing distribution. The housing accumulation fund system is an important social security system for housing stipulated by national laws, which is mandatory, mutually supportive and guaranteed.

The housing accumulation fund paid by the unit for employees is an integral part of employees' wages. It is the obligation of the unit to pay housing accumulation fund for employees, and it is the legal right of employees to enjoy the housing accumulation fund policy. The housing provident fund paid by individual employees and the housing provident fund paid by units for them shall be stored in special accounts and owned by individual employees.

What's the use of provident fund

1. Buying a house

Provident fund loans are a common way to buy a house, and the interest rate of provident fund loans is much lower than that of commercial loans, so more people are willing to use provident fund loans to buy a house. The specific quota and interest rate can refer to local loan policies, or consult local provident fund management departments and unit personnel departments.

2. Renting a house

If some friends are still renting a house, at this time, the provident fund can also be used to pay the house rent, and the renter can apply for withdrawing the provident fund to pay the rent, so as to reduce his life pressure.

3. Renovation

The housing provident fund can also be used when we are renovating. Many people may not be clear about this. You can apply and consult the housing provident fund management departments in various regions. Even if you can't buy a new house at present, decorating your existing home will give people a feeling of living in a new house.

4. Use for building renovated houses

Some friends may not need to buy houses in the city, so the housing provident fund can also be used when building houses. Many people may not know this. You can apply and consult at the housing provident fund offices in various regions.

5. Payment for major diseases

Not many friends may know that the provident fund is used to pay for medical expenses for major diseases. Now, besides medical insurance can subsidize some of our daily medical expenses, the provident fund can also be used to pay for medical expenses. Therefore, under the dual protection of medical insurance and provident fund, the burden of medical expenses has also been greatly reduced.

6. Withdrawal and use of families with difficulties in subsistence allowances

If the employees in the unit are listed as the scope of subsistence allowances or difficult assistance, under this condition, the provident fund can also be withdrawn to subsidize families, but the amount withdrawn cannot exceed the scope of low living security or special assistance.