As people become aware of financial literacy, in the case of housing mortgages, the term " public capital loans " is no longer new. For those who already have a mortgage on their home, the form of the equity hedge is more common. Provident Fund hedges are those who purchase housing with the principal of the loan through direct repayment of the individual ' s balance in the Provident Fund account through application to the local Provident Fund centre or the relevant bank。

Where's the PRGF

However, not all locations can carry out all of the SRF operations, and the specific processes and care details vary. Here, let's look at it。

I. Where is there any way to make a public-funded loan

First of all, we need to be clear that there is a connection between the SRF and the bank and the SRF in which the loan is made. In general, the operation of the Provident Fund hedges can only take place in the cities where the relevant Provident Fund centres and the banks in which the Provident Fund loans operate. Therefore, if you want to make a public capital loan, you need to confirm the policies and regulations of your municipality。

Second, the business processes and requirements of different banks and pension centres for allocating public funds are also different. Some locations need to go to the Provident Fund centres, some need to go to banks and others need to go to both. When doing so, policies and processes need to be carefully read in order to avoid errors。

II. Advantages and disadvantages of a hedge fund

There are, indeed, some clear advantages in terms of equity-based repayments compared to other repayment modalities。

On the one hand, interest earned through the PRGF is relatively low. Lenders pay only the interest rate on the loan and do not have to pay higher rates on bank credit。

On the other hand, there are fewer formalities required for the repayment of public funds, and no documents such as mortgages' property certificates and demolition consents are required。

However, there are also a number of shortcomings in the use of pooled loans。

In the first place, the pre-condition for the processing of a Provident Fund loan is that there must be a certain amount of balance in the individual Provident Fund account, and if the individual has insufficient balance in the individual Provident Fund account, the repayment can only be waived。

In addition, there is a longer period for all-round loans, usually between 10 and 20 years. At the same time, if the repayment were to take the form of a Provident Fund hedge, the lender would have to make its own monthly repayment to the Provident Fund account, which, if overdue, would result in the loss of credit records and affect the individual loan rate。

III. What are the requirements for alluvial loans

Some basic requirements need to be met in order to be able to carry out the equity hedge。

First, the property purchased by the lender must be housing that meets the requirements of the Provident Fund loan. If this is not the case, it will not be possible to apply for the type of repayment to which we have referred。

Second, lenders must have a certain amount of the Provident Fund balance, requiring that different regional policies prevail. If the balance of the Provident Fund account is not sufficient, it is not possible to carry out a hedge。

Finally, the need for lenders to keep a permanent deposit in the individual Provident Fund account and to ensure that there are sufficient balances in the account to pay for the loan is also one of the important requirements for ensuring that the fund is repaid in cash。