Provident Fund hedges are a way to use the balance in the Provident Fund account to make advance repayments of housing loans. While it can be effective in reducing the burden of interest and reducing the repayment cycle, in some cases there may be a need to cancel the all-out. So, how do we cancel the PRGF? It is analysed from the following angles。

How do you cancel the PRF

I. Under what circumstances would there be a need to cancel the equity hedge

1. The balance of the Provident Fund account is insufficient: if the balance of the Provident Fund account used for the repayment of a loan is below the established minimum, then the use of the hedge will not be continued and will need to be cancelled。

2. Other things needed to be done with the balance in the Provident Fund account: for example, in the case of financial constraints, the balance in the Provident Fund account needed to be released to cover other expenses, and then there was a need to cancel the Provident Fund hedge。

3. Termination of early payment: If the original plan was to be paid in advance, but for a variety of reasons the plan would need to be changed, there would be a need to cancel the Provident Fund hedge, or additional interest and handling charges would be incurred。

II. How to cancel the equity hedge

1. Submission of applications: application for cancellation of the Provident Fund hedge loan at the Provident Fund Management Centre. If the process is cumbersome, specific methods can also be consulted at banks or lending institutions。

2. Elimination of the automatic withholding service of the Provident Fund account: If the equity hedge loan is realized through the automatic deduction, it will need to be cancelled in a timely manner, otherwise the account will continue to withhold even if the equity hedge is cancelled。

3. Formal cancellation: Pending review by the Provident Fund Management Centre or the lending institution and formal cancellation of the Provident Fund repayments, there is a need to verify the amount of repayments and to confirm whether the loan has been repaid。

III. What needs attention to be paid to the cancellation of the equity hedge

1. Checking the Provident Fund account balance: Prior to the cancellation of the Provident Fund hedge, it is important to confirm the adequacy of the Provident Fund account balance. Otherwise, it could result in the non-payment of loans, which would have an impact on personal credit records。

2. Pay attention to fees and interest: If a hedge of the Provident Fund has already started, but now a hedge of the loan needs to be cancelled, corresponding fees and interest will have to be borne. Some bank and Provident Fund management centres may charge a fee and need to be informed in advance。

3. Maintenance of personal credit records: Changes in the repayment plan following the cancellation of the Provident Fund hedges may have a negative impact on individual credit records. It is recommended that, after a loan institution or a Provident Fund management centre has cancelled the hedge, every effort be made to adjust the repayment plan, adhere to the timely repayment and protect the personal credit records。