Provident Fund loans have provided financial assistance to many home buyers, with obvious advantages, such as lower interest expenditure. What, however, would be the consequences of the delay in the completion of the Provident Fund loan? What should be done

What will happen if the Provident Fund is overdue once

A delay in a Provident Fund loan may have the following consequences:

First of all, you may be suspended from the housing fund. This is because the Housing Provident Fund management policy provides that if you are overdue, the management centre will suspend your withdrawal until you return to normal repayment。

Second, you may need to pay extra fines. The overdue portion will be calculated in accordance with the relevant provisions of the People ' s Bank of China。

More importantly, your personal credit may be compromised. Upon expiration of the Provident Fund loan, the credit report will leave a poor record and may affect future loan applications. The penalty is a financial loss, but a bad credit record may have an impact that cannot be compensated with money。

In addition, you may receive a letter from a lawyer or a court summons for late loans. If the principal of the loan is not repaid on time for three consecutive or six repayment periods over the duration of the contract, the management centre will, in accordance with the law, collect the overdue loan and may even institute proceedings in court。

Finally, a lender in serious circumstances would face legal sanctions. Those who are able to pay but refuse to pay will be blacklisted, affecting their lives in tourism, travel, consumption and education。

If your Provident Fund loan is overdue, first, it is important to know the amount and timing of the next repayment and to pay it in due time. If repayment is made on a non-agreed repayment date, the relevant formalities will need to be carried out at the departmental window where the loan business is conducted. If the overdue loan arises under a repayment of the principal or interest equivalent, it may need to be handled by contact with the service centre or the bank。