In order to save considerable interest, most buyers would choose to borrow from the Provident Fund. However, some were concerned about how to proceed in the event of separation from service. Don't worry. Here's some solutions

What if they quit after the Provident Fund loan

How is the Provident Fund loan treated after separation from service

First, it turns to commercial loans. In the event of a severance of the Provident Fund at the stage of approval of the Provident Fund loan, the bank may refuse the loan on the basis that you do not meet the conditions of the Provident Fund loan. At this point, you may choose to re-contract the loan. If repayments had already been made but no further work was planned, it would be possible to negotiate with the bank to convert the Provident Fund loan into a commercial loan。

Secondly, the release of the Provident Fund should be restarted as soon as possible. The initial phase of severance or closure does not affect the Provident Fund loan, which will not be affected as long as you are able to pay the monthly repayments on time. However, in order to ensure financial security, long-term defaults may lead banks to stop lending or to recover pre-borrowing. It was therefore the best strategy to restore the contribution of the Provident Fund as soon as possible。

Third, a moratorium on loans. If your application for a Provident Fund loan has just been submitted because of unforeseen circumstances requiring separation from service, it is only necessary to suspend the loan application and to submit it again after the matter has been resolved and the Provident Fund has been restored。

Fourth, early settlement of loans. If the gap after separation is too long, or if you have decided not to work, and if the remaining loan is small or you have sufficient financial power, early repayment of the loan is a good option。

The conditions for applying for a Provident Fund loan are:

WORKERS AND UNITS MUST PAY THEIR SHARE OF THE HOUSING FUND FOR A YEAR ON A CONTINUOUS BASIS; BORROWERS WHO BUY COMMODITY HOUSES MUST HAVE AT LEAST 301 TP3T HOUSE PRICES AS A DOWN PAYMENT; BORROWERS NEED STABLE INCOME, GOOD CREDIT AND THE ABILITY TO REPAY THE PRINCIPAL OF THE LOAN。