Provident fund refers to the money deposited by everyone in the provident fund management center, which is jointly paid by everyone and units, entrusted by the bank and approved by the provident fund management center.
Commercial loans are transactions in which real estate is used as collateral to obtain one-time loans from banks and other financial institutions.
Therefore, not everyone is suitable for provident fund loans, and the loan targets are depositors of housing provident fund and retired employees of remittance units.
At the same time, the following requirements shall be met:
A housing accumulation fund has been continuously deposited for 6 months or has been deposited for more than 24 months and is still being deposited;
B, have a stable occupation and income, and have the ability to repay the loan principal and interest;
C, with the purchase contract or relevant documents;
D. Provide the guarantee method agreed by the housing provident fund management center and its sub-centers;
E, meet other conditions stipulated by the housing fund management center.
The object of commercial loans is not limited to the depositors of housing provident fund and retired workers, but the scope is much wider.
2. Different loan interest rates
Provident fund loans have the characteristics of low interest rate and low interest rate.
The interest of commercial loans is the profit of commercial activities and belongs to relevant investors, while the interest of provident fund is used according to the policy and can only be used for the construction of affordable housing.
3. The approval speed is different.
In terms of approval speed, due to different processes.
Commercial loans are much faster than provident fund loans. After signing the house purchase contract, the borrower can directly handle the commercial loan by providing relevant materials to the relevant bank agency or the developer who signed the cooperation agreement with the bank.
Provident fund loans must first apply to the housing fund management center, accept the preliminary examination of the housing fund management center, and then transfer money to the bank.
In addition to the above differences, but also combined with local policies, the specific situation of specific analysis. Therefore, when buying a house, you must study it carefully and choose the way that suits you best.
4. Different uses
Commercial loans can be used to buy a house and do business.
Provident fund loans can not be used to buy commercial housing, but can only be used for house purchase and decoration.
5. The loan amount is different
Generally speaking, when ordinary property buyers apply for commercial loans, the upper limit of the housing loan amount of commercial banks is sufficient except that their own income will affect the loan amount. However, the characteristics of people and regions who pay the provident fund limit the loan amount of individuals and families.
The longest loan period of provident fund and commercial loans can reach 30 years, and the policy points of loan period are basically the same. But the upper limit of commercial loans is bigger. To this end, some property buyers choose mixed loans.