Stories
PPF is not just a retirement tool it can become your ATM in tough times
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News18•11-10-2026, 15:03
PPF is not just a retirement tool it can become your ATM in tough times
- •Millions invest in the Public Provident Fund for retirement and tax exemptions with fixed government interest.
- •PPF can act as an emergency fund, allowing account holders to take loans without closing the account.
- •Loans against PPF can be availed from the beginning of the third financial year up to the end of the sixth financial year.
- •Account holders can borrow up to 25 percent of the total amount deposited in their PPF account.
- •The interest rate on a PPF loan is significantly lower, being only 1 percent higher than the prevailing PPF interest rate.
Key Questions Answered
Account holders are eligible to take a loan from their PPF account starting from the beginning of the third financial year up to the end of the sixth financial year following the initial account opening date.
The maximum loan amount is capped at 25 percent of the balance available in your PPF account at the end of the second financial year immediately preceding the application year.
The interest rate charged on a PPF loan is set at 1 percent higher than the prevailing interest rate offered on PPF deposits. Since the current PPF interest rate is 7.10%, the loan interest rate is 8.1%.
