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How to Take Loan Against PPF Account 2026

PPF Loan - 1% interest loan against PPF. Years 3-6. Up to 25% of balance.

📁 Banking ⏱️ 30-45 mins 💰 1% Interest

About This Guide

Public Provident Fund (PPF) allows loan against balance from Year 3-6 (after 3 financial years). Interest 1% above PPF rate (currently ~8.1% effective). Up to 25% of balance at end of 2nd preceding FY. Repayment in 36 months. Apply at post office or PPF bank.

Eligibility Criteria

PPF account active 3+ FYs
Within Years 3-6 of account
No previous outstanding loan
Aadhaar mandatory
Indian citizen

Documents Required

Keep these documents ready before starting application. Missing documents = delayed approval.

PPF passbook
Aadhaar
PAN
Bank passbook
Loan application form
Photo
Signature

Step-by-Step Application Process

Follow these steps in order. Each step is critical - skip none.

Verify Eligibility

PPF passbook - active 3+ FYs.

Calculate Loan Amount

25% of balance at end of 2nd preceding FY (e.g., for loan in 2026, use March 2024 balance).

Visit Post Office / Bank

Where PPF held.

PPF Loan Form

Available at branch.

Submit

Form + passbook + KYC.

Verification

Branch verifies.

Disbursement

7-15 days. Bank credit.

Repayment

36 months. Interest 1% above PPF rate.

After Repayment

Can take fresh loan only after 1 year.

Key Benefits

Low interest (1% above PPF rate)
Years 3-6 only
25% of balance
36 months repayment
Self-funded (own money)
Quick disbursement
Avoids breaking PPF
Tax-free PPF continues

What Happens After Application?

7-15 days disbursement.

Frequently Asked Questions

After Year 6?

No more loans. Only partial withdrawal allowed (Year 7+).