Do you have a problem in buying a house with choosing whether to choose a Provident Fund loan or a commercial loan? Today, let us analyse in depth the difference between the two and the question of how much to save。

How much is the equity loan less than the loan

First of all, you might wonder why the Provident Fund loan is cheaper than the commercial loan. In fact, the two most important factors for the comparison of public and commercial loans are the level of loans and interest rates. In general, the interest rate of a Provident Fund loan would be lower than that of a commercial loan, which would mean that the total cost of using a Provident Fund loan would be lower than that of a commercial loan at the same repayment period. It is worth mentioning, however, that the necessary condition for benefiting from this benefit is that you must be a regular contributor。

What is the difference, then, between a pool loan and a business loan? First, they have different rates and levels of credit. Provident Fund loans are influenced by the length and balance of your Provident Fund contributions, with policy ceilings, and commercial loans tend to be higher. Second, there is a difference in the terms of the loans. For business loans, you can apply for the purpose of buying a house if you have a good credit record and can repay it. However, not only does a Provident Fund loan require good credit, but it will take six months for your Provident Fund account to be paid for a continuous period, but it will only be for households that purchase ordinary housing. In addition, if you have a Provident Fund loan outstanding, you can no longer apply for a Provident Fund loan, but there is no problem with commercial loans. Finally, the loan application process varies. Compared to a simple process of commercial lending, the application for a Provident Fund loan is submitted to the Housing Provident Fund Management Centre for a longer period of time. There is also a difference in the sources of funding, with the Provident Fund loan coming from your Provident Fund account, while commercial loans are obtained from financial institutions through mortgages。

This is the comparison of public-fund loans with commercial loans and how to save money。