If you are having a PPF account in which you were investing regularly and for reason you need money now. No need to worry as your PPF account offers the solution. You can take loan from your PPF account against the balance available. This loan is available subject to following terms
- Loan can be taken only from third year of account opening till sixth year.
- The amount of loan is restricted to the 25% of the available balance tow years back as such for taking a loan in third year, balance of first year will be considered, for fourth year, balance for second year and so on
The form for applying for loan is available at link http://www.indiapost.gov.in/pdfForms/PPFLoan.pdf. The duly signed application is required to be addressed to the manager stating you reference details like name, address, PPF account number, etc. Also period for which loan is required needs and details of the loan, if any, take previously and its status as on date. to be mentioned number. Do not forget to attach your PPF passbook along with the duly filled and signed application form.
All it takes is Rs. 500 to begin your savings with PPF account. So as an individual, whether you are self employed or salaried, PPF account may be opened at designated bank branches. Few major nationalised banks offering PPF facility other tha Post offices are State bank of India and its associated banks, Bank of India, Canara bank, Bank of Baroda, ICICI bank etc. Either of the parents may also open PPF accounts on behalf of their minor child.
Rather, you may view your PPF account statement and deposit money online also as major bank banks offering this in their net banking.
Also see Frequently asked questions about PPF
