Public Provident Fund (PPF) is a very popular and trusted investment platform among investors. It not only keeps your money safe, but also gives great returns on it. In PPF, you invest your money for 15 years, which means that on completion of 15 years, you get a deposit amount on maturity as well as interest.

But, PPF is not just a means of investment, but through this, investors can also apply for a loan if needed. Yes, taking a loan from PPF has now become easier than ever. So, if you are also a PPF account holder and are feeling the need for money, then this news is very useful for you.

What are the eligibility criteria to take a loan from PPF

There are some special eligibility criteria to take a loan from PPF. If an investor does not fulfill these conditions, then he cannot apply for a loan:

  • Only those people can apply for a loan under PPF whose account has been open for at least 5 years.
  • You can take a loan against PPF only once in your entire lifetime.
  • Only 25 percent of the amount deposited in PPF can be taken as a loan.
  • To apply for a loan, you must have completed one financial year under PPF.

How much interest will have to be paid

You do not need to provide any guarantee to take a loan under PPF. The money deposited in your PPF account itself acts as security. You get a loan on this at an interest rate of 8.1 percent. However, this interest rate also depends on the banks, so make sure to confirm with your bank before applying. This rate is usually much lower than a personal loan, which makes it an attractive option.

How to apply for a loan from PPF

PPF
PPF
  • Applying for a loan from PPF is very easy. Just follow these steps:
  • First of all, you have to go to the bank where you have opened your PPF account.
  • By going to the bank, you will have to ask for an application form for a loan under PPF.
  • Fill all the information asked in this form correctly. If you have taken a loan earlier, then also give its information.
  • Your PPF passbook will also have to be submitted to the bank along with the form.
  • After verification, the loan amount will be deposited directly into your PPF account.
  • There is also an option to withdraw money after 6 years.

PPF not only gives the option of a loan, but you also get the facility to withdraw some money in case of an emergency. After completion of 6 years of opening a PPF account, you can withdraw some money. This facility is very useful when you suddenly need money and you do not want to take a loan.