Provident Fund loans are the preferred option for many buyers because of low interest rates, long repayment terms and flexible repayment modalities. However, the application for Provident Fund loans is indeed more stringent than commercial loans. Today, let's talk about how long it usually takes between application and approval。

How long will it take to approve an application for a Provident Fund loan

Provident Fund loans are usually approved for about one month. Pursuant to article 26 of the Housing Provident Fund Regulations, the Housing Provident Fund Management Centre makes a decision to grant or deny a loan and informs the applicant within 15 days of the receipt of the application. If a loan is granted, the bank to which it is entrusted carries out the specific loan procedure。

So, what's the process of approving a Provident Fund loan? Let's see:

1. Submission of applications: Borrowers are required to travel to the branches of the Provident Fund to obtain and complete the application form for the Housing Provident Fund loan in its entirety, together with relevant materials for review by the Fund。

2. First instance stage: the branch offices of the Provident Fund shall review the authenticity of the borrower ' s house and its ability to repay, and make recommendations on the amount and duration of the loan. After first instance eligibility, the head of the branch signs the opinion and submits the material to the Municipal Provident Fund for approval。

Final approval: The Municipal Provident Fund Centre reviews the material submitted, makes a decision to grant or not to grant a loan and provides feedback on the results to the branches。

4. Contract: If a loan application is approved, the branch offices of the Provident Fund shall transfer the relevant material to the trusted bank. The Trustee Bank informs the borrower and the guarantor of the mortgage, enters into the Housing Provident Fund Loan Contract and takes the collateral action。

Loans are granted: finally, the trustee bank issues loans to borrowers. If the terms of the loan are not met, the branch offices also inform the applicant, indicating the specific reasons。

In general, while the process of approving Provident Fund loans is relatively complex, it is generally possible to obtain a recoup of the loans in about a month, provided that they are well prepared and that they are submitted on time and as required。