PPF Loan– Public Provident Fund is very popular among investors. It is a safe investment platform. Under this, you invest your money for 15 years. Which means that after 15 years only you are given interest along with the deposited amount on maturity.
But PPF is not just a means of investment, through it investors can also apply for a loan. There are some qualifications or eligibility to take a loan under PPF. If someone does not fulfill it, then they cannot apply for a loan.
What is the eligibility for loan?
1. Only those who have completed 5 years can apply for loan under PPF.
2. You can take loan under PPF only once in your entire lifetime.
3. Only 25 percent of the money deposited under PPF can be availed for loan.
4.To apply for this, you will have to complete one financial year under PPF.
How much interest will have to be paid?
You do not have to give any guarantee to take a loan under PPF. The money deposited in your PPF account acts as security. Under this, you get a loan at 8.1 percent. However, this interest rate also depends on the banks.
How to apply?
- First of all you have to go to the bank where you have opened the PPF account.
- By going here, you will have to ask the bank for a form to apply for a loan under PPF.
- In this form, you will have to provide all the information asked. If you have taken a loan earlier, then provide its details as well.
- After this, the PPF passbook will also have to be given to the bank along with the form.
- After approval, the loan amount will be credited to your account.
- Apart from this, after completion of 6 years in PPF, you can also withdraw some money in case of emergency.