Would it be interesting to know whether there was a direct deduction of the Provident Fund from the Provident Fund loan? Let me explain. When we're ready to buy a house, a pool loan is a good choice. But you might ask yourself, will the application for a Provident Fund loan be deducted directly from my Provident Fund account

Is the repayment of the Provident Fund a deduction

In practice, Provident Fund loans are not directly deducted from the Provident Fund account. Provident Fund loans are for eligible employees who regularly contribute to the local Provident Fund Management Centre. When they wish to buy or build their own houses in the city, they can use the owned property as a security and apply for loans from the local Provident Fund Management Centre。

Thus, loan funds are disbursed by banks entrusted by the Provident Fund Management Centre to cover the purchase of housing。

The repayment process is as follows:

1. As required by the Borrowing Contract, the borrower shall provide monthly interest commencing the month after the loan has been disbursed, with the option of a monthly drawing from the Provident Fund to repay the principal interest on the loan for the month in question。

2. You may also visit the Provident Fund Centre once a year for a one-time withdrawal of the Provident Fund and a one-time repayment of the principal and interest of the loan. For convenience, bank deductions may be chosen. A Deducted Repayment Agreement and the preparation of personal repayment savings cards are required。

3. You shall also entrust the Centre and the Bank with the deposit of the housing fund for you and your spouse on a monthly basis into your pool account as a deduction for the repayment of the principal of the loan for the following month。

4. Thus, the monthly Provident Fund for you and your spouse is transferred directly to your loan bank card, using the balance of the Provident Fund account for you and your spouse to repay the Provident Fund loan in advance. In the event of an underpayment of interest on the loan, the bank deducts the amount from your bank card。

5. This also means that you can pre-finance repayments for more than one month in a bank card and that if the amount is insufficient, the bank will automatically withhold repayments, or if sufficient funds are deposited in a savings card on a monthly basis, the bank will withdraw interest on the loan directly from the borrower ' s savings account。