Get Short-term Loan With Public Provident Fund Account At Just 1% Interest Rate – Here Are The Details

Public Provident Fund account is not just the investment-cum-tax-saving instrument but also used during a financial emergency. It acts as an avenue for a fundraiser. However, according to the PPF loan rules, an account holder can get a loan against its Public Provident Fund account. The PPF account holder should have contributed at least 3 years of PPF account opening and the PPF loan interest rate is just 1 percent.

Source: Basu Nivesh

PPF SEBI registered tax and investment expert Jitendra Solanki said, “A PPF account holder can get a loan against its PPF account from 3rd to 6th years of account opening. In this period, if a PPF account holder comes under any kind of financial stress, then a PPF account can be a good option to raise funds by using the PPF loan option. Most interestingly, the interest rate on loan against PPF is only 1 percent.”

Also Read: Provident Fund News: Check Step-by-Step PF Balance Without UAN Number

Moreover, the Founder at, Manikaran Singhal said that loan against Public Provident Fund – short-term in nature. He additionally said that at the time of loan repayment, the amount taken in the form of loan gets deducted while PPF interest calculation. 

In case of failing to repay the loan against the PPF account within the given tenure, Solanki said that the interest rate will become 6 percent.

Singh Vivek

With over 5 years of writing obituaries for a different organisation, I have a uniquely wry voice that shines through in my newest collection of articles.

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