Loan against PPF: All you should know

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How to get a loan against PPF account

Public Provident Fund is one of the most popular long-term savings options. One such best feature of such an account is that it allows account holders to take a loan against the balance in their PPF account. This facility is very beneficial for individuals who want to apply for short-term loans without pledging any asset as collateral. The interest rate offered on the loan is also relatively cheaper than the other financing options.

Key features of taking loans against a PPF account

Advantages of taking a loan against PPF account

Should you take a loan against PPF? 

PPF is a long-term investment that most people do for their comfortable retirement. Therefore, it would not be a smart move to liquidate your long-term investments to cater to short-term cash requirements. Since PPF provides tax-free and risk-free returns which beat inflation and hence one must look at other alternatives for their financial needs. However, if you do not have any other option you may go for it as the rate of interest is considerably lower.