One can avail loan on PPF subject to certain terms and conditions:
- One can avail loan from 3rd Financial Year to 5th Financial Year.
- Interest rate charged is 2% more than the prevailing interest year.
- Loan is to be repaid within 36 months.
- Maximum 2 nos of loans can be availed.
- 2nd loan can be availed only if 1st loan is fully repaid.
- Maximum of 25 % of the balance at the end of the 2nd immediately preceding year can be taken as loan.
- Loan facility is not available for inactive or discontinued accounts.
- After individual become eligible for withdrawal, loan facility cannot be availed.
Must Read: Withdrawal from PPF