The Provident Fund is the compulsory savings paid by employees and employers registered in the employer. It provides not only housing but also guarantees personal borrowing. Such an approach could help people to quickly access commercial loans without the need to provide too many guarantees or collateral to banks。

Repaying the balance of the Provident Fund

So, what if you want to withdraw the balance of the Provident Fund and pay off commercial loans? Here are some answers。

1. Identification of Provident Fund balances

First of all, you need to identify your pension fund balance. You can search the housing fund administration centre website by using the employer. Generally, the Provident Fund, which has not been withdrawn for more than a year, receives preferential interest rates。

2. Understanding the conditions for extraction

Conditions for drawing on the balance of the Provident Fund include the purchase of housing, repayment of loans, rental of housing, major illness, education of children, etc. If you are making a loan at a commercial bank, you can apply for partial withdrawal of your fund balance. Please note, however, that partial withdrawals can only be made if your fund balance meets your commercial loan repayment requirements. Otherwise, you may need to consider additional ways to repay the loan。

3. Choice to repay commercial loans

If you choose to repay a commercial loan using a partially drawn balance of the Provident Fund, you need to prove that your commercial loan is related. This may be done through a loan contract, a bank statement or a certificate from a commercial loan issuing bank. Please note that the purpose of the loan previously agreed upon in the loan contract should be consistent with the amount of the Provident Fund used to repay the loan。

4. Understanding the timing of extraction

It will take time to withdraw the balance of the Provident Fund. Depending on the circumstances, withdrawal times may vary. In the case of commercial loans, you need to consult commercial banks on whether there are specific requirements for the repayment period. If there are rules, then you need to submit an application for withdrawal of the Provident Fund before the specified time。

5. Calculation of loan repayments

If you choose to repay a commercial loan with a partially drawn balance of the Provident Fund, you need to calculate the loan repayment and monthly contribution. You can use the mortgage calculator to calculate the commercial bank’s real interest rate and mortgage repayments based on the monthly supply and the loan period at the time of your purchase。

6. Costs

In carrying out the withdrawal of the Provident Fund, attention should also be paid to fees. The withdrawal fee is calculated in proportion to the amount withdrawn. Imagine if you only had to draw $500,000, but banks can get thousands of dollars, which is obviously not cost-effective. Select the bank where you are located, comparing costs and interest rates。

In short, there are many things you need to pay attention to in order to pay off a commercial loan. You need to know the amount of the Provident Fund balance, withdrawal conditions, supporting documentation, withdrawal time, and repayment of the amount. Please carefully plan these aspects to ensure that you do not encounter too many problems in drawing up the Provident Fund and to ease the financial pressure。