How to calculate provident fund loan
Provident fund loans are the first choice of low-interest loans for many home buyers, but many people don’t know how they are calculated. This article will introduce the calculation method of provident fund loans in detail, and combine it with the hot topics on the Internet in the past 10 days to help you better understand this financial tool.
1. Basic concepts of provident fund loans
Provident fund loans refer to housing loans that employees apply to the provident fund management center after paying housing provident funds. Interest rates are typically lower than commercial loans, making them popular among homebuyers. The following are the basic features of provident fund loans:
| Project | Description |
|---|---|
| Loan object | Employees who pay housing provident fund |
| Loan purpose | Purchase, build, and renovate owner-occupied housing |
| Interest rate advantage | Lower than commercial loan interest rates over the same period |
| loan term | Up to 30 years |
2. Calculation method of provident fund loans
The calculation of provident fund loans mainly involves loan amount, interest rate and repayment method. The following is the specific calculation method:
1. Loan amount calculation
Provident fund loan amount is usually affected by the following factors:
| Influencing factors | Description |
|---|---|
| Account balance | Generally 10-20 times the account balance |
| repayment ability | Monthly payment shall not exceed 50% of family income |
| house price | The loan amount does not exceed 70-80% of the appraised value of the house |
| local policy | Provident fund centers in various regions have different limit regulations. |
2. Interest rate calculation
The current (2023) provident fund loan interest rates are as follows:
| loan term | interest rate |
|---|---|
| Less than 5 years (including 5 years) | 2.75% |
| More than 5 years | 3.25% |
3. Calculation of repayment method
There are two main repayment methods for provident fund loans:
| Repayment method | Calculation formula | Features |
|---|---|---|
| Equal principal and interest | Monthly payment = [Loan principal × monthly interest rate × (1+monthly interest rate)^number of repayment months]/[(1+monthly interest rate)^number of repayment months-1] | The monthly repayments are the same |
| Equal amount of principal | Monthly payment = (loan principal/number of repayment months) + (remaining principal × monthly interest rate) | The monthly repayment of principal is the same, with decreasing interest |
3. Analysis of hot topics on the entire network
In the past 10 days, hot discussions on provident fund loans have mainly focused on the following aspects:
1. Adjustment of provident fund loan limit
Many cities have recently adjusted their housing provident fund loan policies and raised the upper limit of loan amounts. For example:
| city | Adjust content | Implementation time |
|---|---|---|
| Beijing | Maximum loan limit increased to 1.2 million yuan | October 2023 |
| Shanghai | Maximum household loan limit increased to 1.4 million yuan | October 2023 |
| Guangzhou | Maximum personal loan limit increased to 800,000 yuan | September 2023 |
2. Provident fund off-site loan
With the advancement of the mutual recognition policy of provident funds between cities, the use of provident fund loans in different places has become a hot topic. At present, many urban agglomerations have achieved mutual recognition and mutual lending of provident funds.
3. Provident fund loan and commercial loan portfolio
In areas with high housing prices, provident fund loans alone are often not enough to cover the entire house payment, so the combination of provident fund and commercial loans has attracted widespread attention.
4. Provident Fund Loan Calculation Example
Suppose an employee applies for a provident fund loan of 600,000 yuan, with a term of 20 years and an interest rate of 3.25%, using the equal principal and interest repayment method:
| Project | numerical value |
|---|---|
| total loan amount | 600,000 yuan |
| loan term | 20 years (240 months) |
| monthly interest rate | 3.25%/12=0.2708% |
| Monthly repayment amount | 3,404.23 yuan |
| Total interest paid | 217,015.20 yuan |
| Total repayment | 817,015.20 yuan |
5. Things to note when providing provident fund loans
1. The provident fund account must be continuously paid for a certain period (usually 6-12 months) before you can apply for a loan.
2. The loan amount is affected by the personal provident fund payment base
3. Early repayment may require the payment of liquidated damages
4. Second-hand housing loans may be subject to housing age restrictions
Conclusion
As a policy housing loan, provident fund loans have the advantages of low interest rates and low repayment pressure. Understanding how it's calculated can help homebuyers plan their finances better. Recent adjustments to provident fund policies in various places have also provided more convenience for home buyers. It is recommended that people who want to buy a house pay close attention to the latest policies of the local provident fund center.
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