PPF loan facility explained.

PPF loan facility explained. Account holders can borrow against their Public Provident Fund balance starting from the third financial year of opening an account. The maximum loan amount is limited to twenty-five percent of the balance at the end of the second preceding year. Interest rates on PPF loans are remarkably low at just one percent annually, making this an affordable borrowing option. The loan must be repaid within thirty-six months, though early repayment allows access to a second loan before the sixth year. To apply, submit Form D to your bank or post office with necessary documentation including your account number and passbook copy. This facility provides liquidity without disrupting your long-term savings and tax benefits under Section eighty C.