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How to Take a Loan from Your PPF Account Instead of Breaking Your FD
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CNBC Awaaz•11-10-2026, 13:50
How to Take a Loan from Your PPF Account Instead of Breaking Your FD
- •PPF investors can take loans for medical bills, home repairs, and other expenses without closing their accounts.
- •Loans are available from the end of the third financial year to the end of the sixth financial year.
- •The maximum loan limit is 25 percent of the balance at the end of the second financial year preceding the application.
- •An annual interest of 1 percent is charged if the loan is repaid within the stipulated time of 36 months.
Key Questions Answered
A loan from a Public Provident Fund (PPF) account can be taken starting from the end of the third financial year up to the end of the sixth financial year after opening the account.
The maximum loan limit is capped at 25% of the balance present in the account at the end of the second financial year preceding the year in which you apply for the loan.
An annual interest rate of 1% is charged if the principal is repaid within the stipulated 36 months, after which the interest is cleared in up to two monthly installments. If not fully repaid in 36 months, the interest rate on the remaining balance can jump to 6% per annum.
