PPF is considered one of the most reliable investment options in India because it is fully government-funded and offers excellent tax benefits. Its interest rate is fixed at 7.1% for the October-December 2025 quarter. But the biggest question is: can you withdraw money before its 15-year term? The answer is yes, but with certain conditions. Today, we will understand the complete mathematics of PPF withdrawal rules (PPF Withdrawal Rules 2025) so that you can make the right decision if needed.
15-Year Lock-In Period and Partial Withdrawal Rules
PPF accounts are designed for long-term savings, so they have a fixed lock-in period of 15 years, before which they cannot be completely closed.
Partial Withdrawal Facility
According to the rules, you can make partial withdrawals after completing six years. This means that you can withdraw a small amount from the seventh financial year if needed. The withdrawal amount is limited to maintain the account balance. You can withdraw up to 50% of the balance at the end of the fourth year or 50% of the balance at the end of the previous year, whichever is lower. This rule ensures that your long-term savings are not severely impacted.
Special Provisions for Account Closure and Loan
Recognizing the need for emergencies in PPF, the government has also provided the facility to close the account and take out a loan. Since 2016, the government has allowed account closure after completion of 5 years, but this is only possible under special circumstances. These special circumstances include expenses incurred for the treatment of a serious illness or the need to fund one’s or a child’s higher education. In this case, the interest rate is reduced by 1%.
Loan Option against PPF
Account holders can take a loan of up to 25% of the balance in the account between the third and sixth financial years. This loan must be repaid within 36 months. The major advantage of this is that it meets your needs without reducing your savings.
What happens after 15 years
When the PPF account reaches maturity, the account holder has two excellent options. First, you can withdraw the entire amount, including interest. This amount is completely tax-free. Second, you can extend the account in blocks of 5 years. During this time, you continue to earn tax-free interest without making any new deposits, allowing your savings to continue accruing interest. Thus, PPF is not only a long-term savings plan, but also a reliable fund that is always ready to help you in times of need.