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Loan against PPF : Loan to PPF investors at just 1% interest; Apply

Loan against PPF: If you are investing in PPF then this news may be special for you. Accordingly, one gets a good return on the amount invested in it. You can continue earning in this fund even after retirement. Loan facilities are also provided to investors in Public Provident Fund.

Loans available in PPF are very less compared to personal loans. In such a situation, if you ever need a loan in an emergency, you can take it with the help of a loan in Public Provident Fund. However, PPF loans have their own rules.

As per the information, Public Provident Fund loans are available at affordable rates. No collateral is required to avail this loan. This loan is disbursed on the basis of the amount deposited in your Public Provident Fund account.

This loan is given at an interest rate of 8.1 percent. Whereas PPF accounts earn interest at the rate of 7.1 percent. On personal loans, interest rates range from 10.50 percent to 17 percent to 18 percent.

Conditions for availing loan against PPF

  1. To apply for a Public Provident Fund loan, your PPF account should be at least one year old.
  2. When your PPF account is 5 years old, you can apply for a loan.
  3. You can get up to 25 percent as loan from your PPF account.
  4. Loan facility in PPF is available only once. This means if you apply for the loan again, you will not get the loan.

How to Apply loan against PPF?

  1. You have to go to the bank branch where your Public Provident Fund account is open and fill the form for the loan.
  2. Form-D has to be filled for Public Provident Fund loan in SBI.
  3. In the form, you have to mention the loan amount along with the repayment period.
  4. If you have taken any loan then you also have to give this information in the form.
  5. After that, PPF passbook should also be submitted along with your form.
  6. After loan processing, the loan amount will be credited to your bank account in about 1 week.

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