When buying a house, it is important to choose the appropriate loan. At present, there are two main types of loans: Provident Fund loans and commercial loans. What difference does it make? In order to give you a better understanding, let's go into it together。

What's the difference between a pension fund and a business loan

FIRST, THE RATE OF INTEREST ON LOANS VARIES CONSIDERABLY. THE MOST RECENT BASE RATE FOR COMMERCIAL LOANS WAS 5.41 TP3T, WHILE THE INTEREST RATE FOR PROVIDENT FUND LOANS OVER FIVE YEARS WAS ONLY 3.51 TP3T. IT IS CLEAR THAT INTEREST RATES ON PROVIDENT FUND LOANS ARE LOW AND, IN THE LONG TERM, CAN REDUCE INTEREST EXPENDITURES。

SECOND, THE PROPORTION OF LOANS VARIES. IN THE CASE OF THE SAME SET OF HOUSES, A COMMERCIAL LOAN MAY BE LOANED TO 70% OF THE HOUSE PRICE, WHILE A PROVIDENT FUND LOAN MAY BE LOANED TO 80%. THAT MEANS THAT A POOL LOAN CAN GET YOU MORE MONEY。

Moreover, the loan process is different. Commercial loans need to be audited before they are processed, while Provident Fund loans are audited after they are transferred. So, in terms of timing, the two are different。

Time for approval is also a factor to be considered. The approval of commercial loans usually takes about 20 working days, while the Provident Fund loans take about 40 working days. Commercial loans are approved at a significantly faster rate。

The sources of financing for the loans vary. Commercial loan funds come mainly from commercial banks or other financial institutions, while Provident Fund loans come from funds contributed by Provident Fund contributors。

Finally, let's look at the difference in the use of population. Commercial loans are open to all eligible members of the public, while Provident Fund loans are open only to Provident Fund contributors and are relatively demanding。

Provident Fund loans have obvious advantages and disadvantages. On the other hand, the interest rate of the Provident Fund loans is much lower than that of commercial loans, in addition to the fact that the Provident Fund loans are less age-limited in the purchase of second-hand homes and that borrowers do not need to make appointments in advance and are more flexible。

However, the shortcomings cannot be ignored. First, an application for a Provident Fund loan is subject to a certain period of pay; secondly, the amount of the loan is limited and not as free as a commercial loan。

In general, the choice of whether or not to use a Provident Fund loan or a commercial loan needs to be determined on the basis of the individual ' s circumstances and needs. Whatever option was chosen, it was necessary to pay on time, avoid delays and ensure good personal credit。