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PPF Loan: Get Emergency Funds Without Breaking Your PPF! Know When, How Much, and How to Apply
- •Access low-interest loans from your PPF account for urgent financial needs without premature withdrawal.
- •Loan facility is available from the third to the end of the sixth financial year after account opening.
- •You can borrow up to 25% of the balance at the end of the second financial year preceding the application.
- •PPF loans offer significantly lower interest rates compared to personal loans or credit cards.
- •The loan must be repaid within 36 months from the month following approval, including principal and interest.
Key Questions Answered
The loan facility on a PPF account is available from the beginning of the third financial year after the account was opened until the end of the sixth financial year. For instance, if an account is opened in the 2023-24 financial year, you can apply for a loan from 2025-26 through 2028-29.
The maximum loan amount you can take is capped at 25% of the balance in your PPF account at the end of the second financial year immediately preceding the application year. For example, if you had 2 lakh rupees two years prior, you can take a maximum loan of up to 50,000 rupees.
Once a PPF loan is approved, the principal must generally be repaid within 36 months starting from the first day of the following month. After clearing the principal, account holders must also repay the stipulated interest to avoid any additional interest charges.
