The difference between the two: the interest on provident fund loans is low.
Provident fund loans are actually preferential policies introduced by banks or the government. Everyone definitely needs to get married, so it is normal to buy a house, but many people can't pay in full, so this time is also normal. Provident fund loans are actually preferential policies for everyone to buy a house. Provident fund loans have the characteristics of low interest rate and low interest rate. In other words, the interest of commercial loans is for profit, but the provident fund loans clearly stipulate that they have special policy purposes and can only be used for the construction of affordable housing, so the interest of provident fund loans is very low.
Different sources of funds
As you can see, provident fund loans are more cost-effective than commercial loans. If you meet the corresponding conditions, you can actually apply for a provident fund loan at the bank. Provident fund loan is a loan policy that employees who pay housing provident fund can enjoy. However, everyone can choose commercial loans. From this perspective, commercial loans can give people a wider range of choices, but provident fund loans are more cost-effective. The use of provident fund loans is lower than ordinary commercial loans.
1. Interest rate difference: at present, the annual interest rate of housing provident fund loans is 3.25% for 1-5 years and 3.75% for more than 6 years; Bank loans, 5.5% for less than 5 years and 5.65% for more than 6 years; The difference between them is less than 5 years, 2.25%, and more than 6 years 1.9%. In terms of interest rate, the interest rate of housing provident fund should be more favorable than that of banks.
2. Interest difference: equal repayment of principal and interest, taking the loan of 200,000 for 20 years as an example, the total repayment of housing accumulation fund is 284,586.39 yuan, and the total repayment of bank is 334,265.65 yuan, with a difference of 49,679.26 yuan; Taking 300,000 years as an example, the total repayment of housing provident fund is 426,879.59 yuan, while that of banks is 50 1.398.47 yuan, with a difference of 745 1.88 yuan. The difference is enough to make you struggle for a year less.
Iii. Repayment difference: Under the condition that the lender repays normally and the collateral remains unchanged, the housing provident fund loan can be withdrawn once a year, and the withdrawal amount is the amount of the housing provident fund loan repaid in the previous year, so the repayment pressure is relatively light. With the increase of wages, the amount of housing provident fund deposit may increase. At the same time, when the housing provident fund loan balance is equivalent to the account balance, the lender can withdraw the account balance at one time to pay off the loan.
4. Employees who pay housing provident fund and their spouses, parents and children can apply for housing provident fund loans in the name of employees who pay housing provident fund. You can also apply for buying a house in other places. Legal basis: According to "Measures for Financial Management of Housing Provident Fund", the value-added income of the provident fund has three main purposes: first, it is accrued as the operating cost of the provident fund management center, and second, the loan risk reserve is drawn according to the proportion of 60% of the value-added income (in recent years, the property market has risen, there are no bad debts, and this risk fund has not been used). In addition, after deducting the above two items from the value-added income, the remaining part will be turned over to the finance for the construction of low-rent housing in cities and towns, and the provident fund management center shall not intercept it.