Need a loan? You can avail of loans from the PPF account at only 1% interest, See Details

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PPF Loan: Due to the second wave of Corona, a lot of people across the country are facing money problems at this time. If you are involved in them and you also need money, now you can take a loan from your PPF (Public Provident Fund) account at just 1% interest and can do all your important work. The biggest feature of a PPF account is that you can take a loan based on the amount deposited in it. The interest that has to be paid on this loan is much less than a personal loan, a gold loan, and other types of loans.

Terms and conditions for taking a loan

Financial planner Jitendra Solanki said that there are terms and conditions which have to be followed for taking a loan from a PPF account. The first rule is that the PPF account must be at least three years old. The second rule is that the loan will be available only between three years to six years of the account. The third rule is that you will get only 25 percent of the total amount deposited in the account as a loan. It will be calculated on the basis of the amount deposited after two years, if you have taken a loan in the third year. If you apply for a loan any month from April, the calculation will be based on the amount deposited till March 31.

You can take a loan for three years

Tax and investment advisor Manikaran Singhal said that the PPF account gets a loan for three years i.e. 36 months. Loans taken during this period have to be repaid. The loan amount is deducted at the time of calculating PPF interest. If you are unable to repay the loan in 36 months, then you have to pay interest at the rate of 6%.

Also, Read This: Here is How You can earn 1 crore rupees from a PPF account, Know the Process

Important information about these things

  • You can contact your bank or post office to take a loan
  • There is no need to submit any documents or mortgage anything to get a loan.
  • Tax is not available on PPF interest on taking a loan, it ends.
  • It is necessary to deposit the loan amount along with interest, otherwise, no tax benefit is available.
  • You can take a loan between the third and sixth year of opening a PPF account
  • A loan can be availed only once a year. You can take a second loan only after depositing the full amount of the first loan
  • Your credit score is not required for taking a loan through PPF.


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