As the demand for housing is increasing, the majority of home buyers will opt for the Housing Provident Fund loan as a common method of home-buying. Provident Fund loans have many advantages over commercial loans, such as low interest rates and high lending levels. As the purchaser buys the house, some may consider the operation of a credit loan, but what needs to be noted is the effect of the Provident Fund balance on the credit line。

Does the Provident Fund balance affect the credit line

First of all, we would like to understand that there is a real impact on credit loans. Because, from a bank ' s point of view, Provident Fund deposits are also a liability, and when banks conduct credit appraisals, they also take into account the income and other liabilities of their hands. If the balance of the Provident Fund is too high, the bank will consider that you do not need to carry out credit operations and that the transactions are not sufficiently dynamic, so that the credit line will be reduced accordingly. In general, an excess of the amount of the Provident Fund account balance reduces the corresponding amount of crediting。

Second, it should also be noted that the impact of the Provident Fund balance on the credit loan assessment will also have some bearing on the amount of the house purchase. In the bank ' s lending decision-making process, a free-flow assessment is generated for each client, with the core indicator being the remaining cash flow, which is clearly influenced by both Provident Fund loans and repayments. If you buy a house with a public deposit, the monthly loan will become a fixed expense, and the credit will be limited。

Finally, one factor that needs to be taken into account is the difference in interest rates between credit loans and Provident Fund loans. One of the reasons why some people chose credit loans was to reduce the balance on the Provident Fund account, which would avoid the impact of excessive balances on credit lines. In addition, interest rates on Provident Fund loans and credit loans vary, and individual cases are subject to individual judgement。