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How to take loan from PPF account?


How to take loan from PPF account?
Public provident Fund is a very popular form of investment, not only for tax saving purposes, but, also as it offers you a good yield. The present rate of interest at 8.70 per cent, makes it a very attractive proposition. Did you know that you can now also take loans from your PPF account.

It is much cheaper and better and comes with only 2 per cent additional interest rate. This is far more competitive than any otehr form of loan, including personal loans.


You can avail of loans against the balance in your public provident fund account (PPF), subject to certain ceilings and based on other requirements. Also read 7 must know facts about PPF

You can avail a loan from your PPF account from the 3rd year of opening your account to the 6th year. Also, the loan amount will be restricted to a maximum of 25 per cent of the balance in your account at the end of the first financial year (if you opt for the loan in the third year). If you opt for a loan in the fourth year, the second year's balance will be taken in to account and so on.

The application for the loan can be downloaded from

The application will be addressed to the manager quoting your PPF Account number. It will also mention that you wish to repay the sum within a specified period. The application will also mention any loans taken previously and whether you have paid back the same. Your passbook has to be enclosed and your must sign the requisite form.

Just requires Rs 100 to start a PPF account

Did you know that it requires a small amount of just Rs 100 to start a public provident fund account. The same can be opened by individuals, whether salaried or self employed, with a minimum initial deposit of just Rs. 100. Accounts could be opened at any branch of the State Bank of India (SBI) or branches of its associated banks. Other nationalised banks which offer this service are Bank of India, Central Bank of India and Bank of Baroda. The general post office too allows opening of a PPF account. Individuals may also open a public provident fund account on behalf of a minor child of whom he is the guardian. Now, it's also possible to transfer online and you do not have to wait at banks or the post office.

Read more about: ppf
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