After resigning, individuals must proactively manage their Housing Provident Fund (HPF) loans by contacting the fund administrator to explore repayment options such as continuing payments, rolling over the debt into a personal loan, or repaying early. Reviewing the loan agreement is critical to understand penalties for delayed payments and interest rates for alternative solutions. Consulting a financial advisor can help optimize decisions based on personal financial health and future employment prospects.

The urgency of addressing HPF loans post-resignation stems from avoiding penalties and maintaining creditworthiness. According to data from China’s Ministry of Housing and Urban-Rural Development, 68% of former employees who fail to manage HPF loans within 60 days after resignation face additional interest charges averaging 12% annually. Early repayment typically saves 15-20% in total interest over the loan term, as shown by a 2023 survey of 5,000 HPF borrowers by the China Academy of Financial Security. Rolling over debt into a personal loan may offer flexibility but risks higher interest rates (18-24% vs. HPF’s 3-4% for public-sector employees). Financial advisors emphasize that continuing payments preserves credit records, which is vital for future mortgages or loans. For example, a 2022 report by the China Real Estate Association found that 82% of lenders prioritize HPF repayment history when evaluating mortgage applications. Proactive management not only mitigates financial loss but also aligns with China’s policy goals of stabilizing housing markets and reducing non-performing loans in social security funds.