What does provident fund hedging mean?

Provident fund hedging means that after applying for housing provident fund loan, users can use the balance of the lender's or his spouse's provident fund account to offset the repayment amount of the housing loan when repaying the provident fund. Usually, the repayment amount of housing loan can be directly mortgaged by the provident fund account, which has a great alleviating effect on the pressure of users to repay the housing loan.

How to deduct the insufficient balance after the offset of provident fund?

Provident fund hedging is to first flush the borrower's provident fund account, then flush his spouse's provident fund account, and finally flush the borrower's designated bank repayment account. There are three repayment channels in total, with the guarantee of triple repayment channels, in order to avoid the occurrence of insufficient hedge balance as far as possible.

It should be noted that if the loan is generally overdue for more than three times, the provident fund center has the right to directly terminate the hedging loan repayment business in that month, and the results of overdue loans will also be reported to the credit bureau to affect personal credit, so the lender should ensure that the repayment account can be successfully deducted.