Loan Against PPF Account

Last Updated : Sep 1, 2023
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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.

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