What does provident fund mean? What should I do if my provident fund payment is stopped and I cannot apply for a loan?

Because the pressure to buy a house is still relatively high now, if we have a provident fund, then we will reduce some pressure when buying a house, and it is also very common to use provident fund loans to buy a house, so everyone I am also very interested in understanding the provident fund. Let’s talk to you about what the provident fund means? What should I do if my provident fund payment is stopped and I cannot apply for a loan? Hope it can help everyone.

What does provident fund mean?

The housing provident fund system is actually a housing security system and a form of monetization of housing allocation. The housing provident fund system is an important housing social security system stipulated by national law and is mandatory, mutually supportive, and protective.

The housing provident fund paid by the unit for its employees is an integral part of the employee's salary. It is the obligation of the unit to pay the housing provident fund for its employees, and it is the legal right of the employees to enjoy the housing provident fund policy. The housing provident fund paid by individual employees and the housing provident fund paid by the unit for them are stored in special accounts and belong to the individual employees.

What to do if you are unable to apply for a loan because your provident fund payment is cut off

1. Choose a commercial loan

If you are unable to apply for a loan because your provident fund payment is cut off, you can choose a commercial loan, but The current interest rate for commercial loans is 4.9%, which is a bit higher than provident fund loans. Compared with the two, commercial loans can cost hundreds of thousands of yuan more.

2. Start saving from the beginning

If you are not in a hurry to buy a house, it is best to pay the provident fund from the beginning before applying for a loan to buy a house. Usually, you only need to pay for 6 or 12 consecutive months. If you have a provident fund, you can apply for a personal provident fund loan, but the premise is that the home buyer must have a relatively stable job, otherwise he will face a suspension of payments again.

3. Repayment

There is another way to repay the provident fund, but not everyone can do it. This requires the home buyer to provide relevant information about the original unit. It must be certified and must be reviewed by the relevant departments of the Provident Fund Management Center.