INTERVIEW QUESTIONS LOAN LOAN AGAINST SECURITIES DETAILS

Question: Can you tell me about PPF loans. What is the maximum amount I can borrow through a PPF loan?

Answer: Taking a loan against PPF is a good way to raise funds when faced with a financial emergency. Apart from taking a loan on PPF you also have the facility to partially withdraw funds from your PF account after seven years.

Loans on PPF accounts are eligible only for accounts between the 3rd to the 6th financial year. The maximum amount of loan you can get from your PPF account is fixed at 25% of the balance lying in your account at the end of the first financial year. For example if you apply for a loan in the 4th financial year, the balance in your account at the end of the 2nd year would be taken into consideration.

The interest rate on the loan amount is 2% higher than the interest being given on the PPF balance. Repayment tenure for all PPF loans is fixed at a maximum of 36 months and you must repay the loan within the stipulated time period. In case of nonpayment in time, the interest rate charged is increased to 6% than the interest being given on the PPF balance.

Taking a loan against PPF is a good way to raise funds when faced with a financial emergency. Apart from taking a loan on PPF you also have the facility to partially withdraw funds from your PF account after seven years.

Loans on PPF accounts are eligible only for accounts between the 3rd to the 6th financial year. The maximum amount of loan you can get from your PPF account is fixed at 25% of the balance lying in your account at the end of the first financial year. For example if you apply for a loan in the 4th financial year, the balance in your account at the end of the 2nd year would be taken into consideration.

The interest rate on the loan amount is 2% higher than the interest being given on the PPF balance. Repayment tenure for all PPF loans is fixed at a maximum of 36 months and you must repay the loan within the stipulated time period. In case of nonpayment in time, the interest rate charged is increased to 6% than the interest being given on the PPF balance. Source: CoolInterview.com

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