Lending must be qualified as a bank, and the provident fund is not a financial institution. Those who are not qualified to issue loans must entrust a bank. The provident fund is responsible for examining the qualifications of lenders, and the bank is responsible for the issuance and recovery of loans. The provident fund center collects value-added benefits such as loan interest as management fees, and pays employees the interest paid into the provident fund, bank fees, etc. Because the loan is risky, it is also necessary to withdraw the risk reserve from the value-added income according to the prescribed proportion.

In order to issue provident fund loans, banks must first sign the Entrustment Agreement for Housing Provident Fund Loan Business with the Provident Fund Management Center, and only after obtaining the right to undertake it can they accept the entrustment to handle the individual housing loan business of provident fund. After the provident fund management center approves the loan, it issues the Letter of Entrusted Loan to the entrusted bank, and at the same time transfers the entrusted loan funds into the bank's housing entrusted loan fund account. The bank signs a contract with the borrower with the Letter of Entrusted Loan, and goes through the formalities of mortgage and loan transfer. After the loan is issued, the undertaking bank will provide the customer with a receipt and submit the relevant loan information to the provident fund management center.