One of the five insurances and one fund refers to the housing provident fund. The State encourages provident fund loans, so the interest on buying a house with provident fund loans is less, which can reduce the personal burden. So does the use of provident fund loan need a guarantor? What conditions does the guarantor need to meet?
Does provident fund loan need guarantor
The housing provident fund loan must be guaranteed by someone, which is actually to prevent the risk of the provident fund loan. The term of the provident fund loan is relatively long (up to 9 years), and the risk is relatively high. There may be various changes during the loan period. If the borrower has major changes after the loan, it will not be able to repay the loan normally, which will bring great impact on the recovery of funds Risk, affecting the safe operation of housing provident fund. In order to ensure the security of housing loans, borrowers must be required to provide security.
If a natural person is the guarantor of housing provident fund loan, the guarantor must meet the following conditions
1. Having full capacity for civil conduct;
2. They have permanent residence or valid residence status in local cities and towns, and their income is relatively stable;
3. Continuous normal deposit housing provident fund for more than 6 months, and its account has more than 1 year deposit amount;
4. No accumulation fund loan balance and other non-performing debts;
5. During the period when the borrower fails to repay all the principal and interest of the loan, he shall not withdraw the housing provident fund or apply for the housing provident fund loan;
6. The age of the guarantor of the housing accumulation fund plus the term of the guaranteed loan shall not exceed the legal retirement age.