Loan Against PPF Account

Last Updated : May 29, 2019
  • Home
  • Loan Against PPF Account

PPF Account Loan

  • Loan facility can be available from 3rd financial year up to 5th financial year.
  • You can avail maximum 25% amount of the balance at the end of 2nd immediately preceding year would be allowed as loan.
  • However, the rate of interest of 1% more than PPF interest p.a. shall continue to be charged on the loans already taken. E.g. If a loan is applied in 2014-15 then 25% of balance at the end of 2012-13 can be taken as loan.
  • Withdrawals are to be repaid within 36 months. A fresh loan is not allowed when a previous loan or interest is outstanding.
  • You can take second loan after repaying the first one.
  • Interest Rate is 1% if repaid within 36 months and at 6% on the outstanding loan after 36 months. The repayment may be made either in lump-sum or in installments.
  • If you fail to repay the loan within 36 months, 6% extra interest than normal interest will be charged and the amount will be debited from your PPF account at the end of each financial year.


Disclaimer : We DO NOT offer any financial advice here. The website's content should only be used for informational purpose. By using this website user is agree that the authors and website are not responsible or liable, directly or indirectly for any losses incurred through this website.