Loan can be taken up to 25 percent of the amount deposited in the account, only this will have to be done
Due to the Corona epidemic across the country, the earnings of many people have stopped or have reduced. Due to which people are facing financial problems. However, in this way, people who are troubled by financial constraints, their PPF account can help. Any person who is in need of money can take a loan against his PPF account. Today we will tell you how you can take advantage of the loan facility available against PPF.
Any individual who has a PPF account can take a loan up to 25% of the amount deposited in his PPF account. However, for this your PPF account should be more than one year old. Suppose if you have opened your PPF account in January 2017, then you can take a loan of up to 25% of your deposit amount from 1st April 2018 to 31st March 2022. In this way, after taking the loan, first the principal amount of the loan has to be paid and then its interest. The principal amount can be paid in two or more or monthly installments.
The principal amount of the loan has to be paid by the end of 36 months from the day the loan is taken. The interest rate of the loan is only 1% more than the interest on PPF. You can also pay the interest in two monthly installments or in one go. Once the loan is taken, it has to be repaid within 36 months. If you are not able to pay this due on time, then the outstanding amount pr you will be counted at the rate of 6 percent interest per annum. To take a loan against PPF account, you will have to apply for it by going to the place where you have a PPF account, where apart from the Aadhar card, some other documents have to be given.