Our reporter Wang Denghai reports from Beijing
On July 16, the Zhengzhou Housing Provident Fund Management Center issued the “Notice on Adjusting the Policies on the Use of Housing Provident Funds”, which adjusted the housing provident fund loan application conditions, determination of repayment ability standards, and withdrawal of housing provident funds.
A reporter from China Business News learned that in the past two years, Zhengzhou’s housing provident fund has seen a steady increase in the amount of withdrawals and a substantial increase in the loan amount, resulting in a rapid increase in the utilization rate of housing provident fund loans. Relevant data shows that in 2018, 2019, and 2020, the personal housing loans issued by Zhengzhou Housing Provident Fund were 5.087 billion yuan, 9.805 billion yuan, and 19.424 billion yuan, respectively. The number of loans issued was 13,300, 22,600, and 36,700 respectively. pen. In the above three years, Zhengzhou’s housing provident fund withdrawals were 15.342 billion yuan, 17.591 billion yuan, and 21.992 billion yuan, accounting for 65.4%, 64.77%, and 69.25% of the total amount paid in that year.
Regarding the background and purpose of this policy adjustment, the Zhengzhou Housing Provident Fund Management Center stated that since 2020, the demand for the use of housing provident fund has increased significantly, resulting in a rapid increase in the utilization rate of housing provident fund loans and a tight liquidity of funds. In order to adjust the contradiction between the supply and demand of funds and ensure the sustainable and healthy development of various businesses of the housing provident fund, it is necessary to adjust some housing provident fund use policies.
Tighten housing provident fund loans
The reporter learned that in 2020, the demand for Zhengzhou Provident Fund loans will not decrease, and the lending business will grow rapidly. The issuance of personal housing loans showed rapid growth throughout the year, and provident fund loans maintained high market demand. In the whole year, 36,700 personal housing loans and 19.424 billion yuan were issued, an increase of 14,100 and 9.619 billion yuan respectively from 2019, and a year-on-year increase of 62.39. %, 98.1%. At the end of 2020, the loan rate (the ratio of the balance of personal housing loans to the balance of deposits) was 81.52%, an increase of 7.72 percentage points from the beginning of the year.
This is a huge gap with the 2020 business plan of Zhengzhou Housing Provident Fund Management Center. The center’s plan for 2020 is to issue 5 billion yuan of personal housing loans, and the utilization rate of personal loans is controlled within a reasonable range of about 85%.
Therefore, the New Deal first adjusted the conditions for applying for provident fund loans. After the adjustment, applicants for housing provident fund loans should meet the conditions that the applicant has paid the housing provident fund continuously and normally for more than 12 months, the account status is normal, and the recent payment has not been paid for more than 4 months. Before the adjustment, the borrower can apply for a provident fund loan with continuous and regular payment of housing provident fund for more than 6 months.
Zhengzhou Housing Provident Fund Management Center stated that after the adjustment of housing provident fund loan application conditions, the threshold for housing provident fund loan application has been raised, which can effectively adjust the concentration of housing provident fund loan applications and ease the contradiction between fund supply and demand. Employees who have paid for less than one year will not be able to apply for housing provident fund loans or portfolio loans for the time being.
Regarding the determination standard of loan repayment ability, the original policy stipulates that when approving housing provident fund loans, the monthly housing provident fund loan repayment calculated based on the maximum repayment period and the selected repayment method should not exceed 60% of the family’s monthly income.
According to the new policy requirements, when approving housing provident fund loans, the monthly housing provident fund loan repayment calculated based on the maximum repayment period and the selected repayment method should not exceed 50% of the family’s monthly income.
After the adjustment of the determination standard for loan repayment ability, housing provident fund loans and bank commercial housing loans have implemented the same loan repayment ability determination standard, which helps prevent the overdue risk of housing provident fund loans. This regulation will not have a big impact on housing provident fund loan processing, but the maximum loan amount for families with low repayment ability will be slightly reduced.
In addition, the new policy also stipulates that the housing provident fund loan approval department shall not approve applicants who have 3 consecutive or 6 cumulative bad personal credit records in the past 2 years (including spouses who jointly apply for loans, the same below), or are accepting Zhengzhou Applicants managed by the “blacklist” of housing provident fund grant housing provident fund loans.
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