Public Provident Fund: You can take a loan through Public Provident Fund (PPF) account. The special thing is that you will get the benefit of the loan at the rate of only 1 percent (ppf interest rate).
Public Provident Fund: If you also need money in Diwali or are planning to buy something new in the festive season, then now you will not have to worry about money. You can take a loan through Public Provident Fund (PPF) account. The special thing is that you will get the benefit of the loan at the rate of only 1 percent (ppf interest rate). Let us tell you how you can avail loan against PPF-
From when till when can I take advantage of the loan?
Taking a loan against PPF account is quite easy. Let us tell you that if you have opened a PPF account in the financial year, then you can take it from the end of that financial year till the end of 5 financial years. For example, suppose you have opened your PPF account in January 2017, then you can take advantage of the loan from 1st April 2019 to 31st March 2023.
How much loan can I take?
According to the rules issued by the post office, if you are applying for a loan on this Diwali, then you can take a loan of up to 25 percent on the deposit till 31 March 2021. At the same time, if we talk about interest, then on this amount you will get the benefit of interest at the rate of only 1 percent.
The first pay the principal amount
if you take a loan against public provident fund you have to pay back the principal. After that you have to pay the interest amount. You can repay the principal in two or more monthly installments. It depends on you how much installment you want to pay.
Interest is deducted from the PPF account,
apart from this, if you talk about interest, then you have to pay it in two monthly installments. At the same time, if you have paid the principal amount of the loan within the stipulated time frame, but have not paid the interest part, then that amount will be deducted from your PPF account.
For how long can one take the loan?
Talking about the loan tenure, you can take a loan in this for a maximum of 3 years i.e. 36 months. Apart from this, you will not be given a loan again until you pay off the first loan.
How can I take loan?
Let us tell you that if you do not pay the loan on time, then you have to pay interest at the rate of 6 percent on the outstanding amount. If you do not repay the loan within 36 months, then you will have to pay interest at the rate of 6 per cent. You can take this loan from the post office or you can take this loan from where you have opened the PPF account. For this, you will have to provide Aadhar card and some documents.
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