You might want to know what would happen if you decided to use your pension fund? Most may think first of all that they can borrow from the Provident Fund, but in practice, the Fund can also be used. Look what you might have done with the withdrawal。

What happens when you withdraw the fund

The first possibility, your Provident Fund loan line will be affected. You want to get a pension loan? If the balance of the Provident Fund is insufficient, it may affect your loan line. As we all know, your Provident Fund loan lines are usually 10 to 20 times the balance of your Provident Fund account. If you choose to draw on part of the pool, your loan will be reduced accordingly。

The second scenario is that drawing the Provident Fund may affect your entitlement to housing preferences. If you have written in the reasons for your application to draw on the Provident Fund to purchase property or pay a mortgage, you may not be able to enjoy the policy of first flats for some time. Therefore, when drawing from the Provident Fund, you should decide on a case-by-case basis to avoid frequent use of the loan or purchase of the house。

The third scenario is that, for a period of time, you cannot draw on the Provident Fund many times. Although the Provident Fund is available, you cannot apply for withdrawal on the same grounds frequently. For example, if you apply for a Provident Fund on the grounds of renting a dwelling, it is usually only available once in a year。

So, how to draw on the Provident Fund? You need to apply to the Provident Fund Management Centre, fill in the application forms as required and submit all necessary documentation. Upon receipt of your information, the Provident Fund Management Centre will conduct an audit. Once the audit is completed, they will enter into a drawing agreement with you on the Provident Fund and transfer the withdrawals to the bank account you specified。