The best and safest way to invest is through Public Provident Fund ie PPF Account. Through this, you can get a big amount by making small savings. But let us tell you that the benefits of PPF account are not limited to this only.Â
You can also get the cheapest loan through this. Only one percent interest rate has to be paid for loan against PPF account.
There are some rules for PPF loan. That’s why not everyone can take a loan from it at any time. You can apply for the loan only after the completion of a certain tenure of the account. For example, if you have opened a PPF account in 2015, then you can take a loan against PPF between 2018 and 2021.
You can take a loan through PPF for a maximum period of 36 months. This means that you have to repay the loan amount in 36 months. At the same time, if you are not able to pay interest in 36 months, then the interest rate will increase. That is, in 36 months which you were paying one percent interest, after that you will have to pay 6 percent interest.
Only one loan can be taken at a time against PPF account. Unless you repay the first loan, you will not get the second loan. However, after repaying the loan, you can take the loan again for the second time.
One advantage of taking a loan against PPF account is that you keep getting interest on the amount you have taken the loan and after that the amount remaining in the account. For example, if you have 1 lakh rupees in your account and you have taken 50 thousand loan, then you will continue to get interest on the remaining 50 thousand rupees. At present, 7.1 percent interest is being given in PPF account.
To take a PPF loan, you will need to fill Form D. In the form, you have to tell from which PPF account how much loan you want to take. Apart from this, you will also have to give a copy of the passbook along with the form. You can take a loan of only 25 percent of the amount deposited in the PPF account.
