Loan on Public Provident Fund (PPF)

The first loan can be taken in the 3rd financial year from the date of opening of the account, or upto 25% of the amount at credit at the end of the first financial year. The facility can be availed of any before expiry of 5 years from the end of the year in which the initial subscription was made. The loan is repayable either in lumpsum or in convenient installments numbering not more than 36. The rate of interest charged on loan taken by the subscriber of a PPF account on or after  01.12.2011 shall be  2% p.a. However, the rate of interest of  1% p.a. shall continue to be charged on the loans already taken  or taken up to 30.11.2011.

A loan repayable in 36 months can be obtained in or after the 3rd year, up to 25 per cent of the balance at the end of the preceding financial year. The interest charged on the loan is 1 per cent higher for the first 36 months, and thereafter, 6 per cent on the outstanding amount. A second loan can be obtained before the end of the 6th financial year if the first one is fully repaid.


This is the unofficial website of Indian Post office schemes which shows official schemes of Indian Post Office e.g., Public Provident Fund (PPF), RD, MIS, Kisan Vikas Patra, NSC, Time Deposits, Savings account, Senior Citizens Savings Scheme etc.

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