Sihai network

How long is the term of provident fund loan? What are the advantages of provident fund loans

As we all know, although there are many restrictions on provident fund loans, they are favored by many home buyers because of their low interest rate. So, how many years can provident fund loan? The following small series will introduce the relevant information of provident fund loan period, hoping to help you.

How long is the term of provident fund loan? What are the advantages of provident fund loan

Generally speaking, the longest loan term is 30 years. If the borrower has continuously deposited the provident fund in full for more than 5 years (inclusive), and has stable income and good reputation, it can be relaxed to 1-5 years after the statutory retirement age of the borrower, that is, the age of male is not more than 65 and that of female is not more than 60. Under different circumstances, the term of provident fund loan should follow the following rules:

1. First hand housing for provident fund loans. The longest term of the provident fund loan for the purchase of affordable housing, commercial housing and cooperative housing construction is 30 years; the longest term of the provident fund loan for the construction, renovation and overhaul of self owned housing is 20 years; at the same time, it does not exceed the legal retirement age of the borrower and is postponed for 5 years.

How long is the term of provident fund loan? What are the advantages of provident fund loan

2. Second hand housing for provident fund loans. The maximum term of the provident fund loan for second-hand housing is 20 years, which shall not exceed half of the remaining service life of the housing appraisal base date; it shall not exceed 5 years after the legal retirement age of the borrower; if any of the above terms is exceeded, the shortest time shall be taken as the loan term.

It is worth mentioning that the benefits of provident fund loans are quite large, and the interest rate of loans is lower than that of commercial loans. The monthly interest rate is 2.75% within five years (including five years), and the annual interest rate is 3.25% over five years. In addition, the duration of provident fund loans is longer. All in all, if we can apply for the provident fund loan, it is very beneficial for us.