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PPF Loans: Loans will be guaranteed without guarantee on PPF account, only these conditions have to be met

To meet the needs of money, a loan can be taken on PPF account. However, there are some rules for this. Loan cannot be available on account before 5 years.

In the Corona period, if you are struggling with financial problems, then you can take a loan on a Public Provident Fund (PPF) account. There is no need of any kind of guarantee in this. In this, you can apply both online or offline. However, the loan will be available only after the completion of 5 years of investment in the account.

Typically, the maturity period in a PPF account is 15 years, but once the account becomes 5 years old, you can avail loan facility in it. Apart from this, you can also take advantage of pre-maturity withdrawal. So what is the process of this, know the complete details.Loans can be availed up to 25 percent

In addition to the time period for taking a loan from a PPF account, the deposit amount also matters. You can take a loan up to 25 percent on the deposit amount. To avail this facility, the principal amount of the loan is first to be repaid, followed by interest. You can repay the principal amount in installments.

They will not get the benefit of loan
If the PPF account of an account holder has been deactivated, then you cannot take a loan on it. Apart from this, if you have taken a loan on PPF before and till it is over, you cannot take another loan on it. Minors cannot take loans themselves, an application can be made in the name of a guardian. For this, a certificate has to be submitted in the accounts office.

You get 36 months to repay the loan
36 months time is given to pay the principal amount of the loan. This deadline starts from the month in which you have taken a loan. The effective rate of interest for loans is only 1% higher than the interest earned on PPF. If you have paid the principal amount of the loan within the stipulated time but some part of the interest is left, then it is deducted from your PPF account.

Additional interest will have to be paid if the loan is not repaid
If you are unable to repay the loan on time, then the remaining loan amount will be charged at the rate of six per cent per annum. This six percent interest rate will last from the first day of the month in which the loan is taken, till the last day of the month in which the last installment will be paid. If the account holder dies during this time, the nominee or successor will have to pay the interest.

Parvesh Maurya
Parvesh Maurya
Parvesh Maurya, has 5 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @
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