If you also invest in Public Provident Fund (PPF), then you get returns on this investment amount. Income can be released even after investment in this fund. Loan facility is also provided in PIFF.
Let us tell you that meeting loan on PFF is much cheaper than personal loan. In such a situation, if you ever feel the need of a loan in a difficult situation, then you can take the help of PIP loan. However, PPF Loan has its own rules. Know how you can take PPF loan.
Interest Has To Be Paid On PIPF Loan
PIFF Loan is a big name. There is no need to pledge any goods to avail this loan. This loan is given on the basis of the amount deposited in your PPF account. This loan is given at the rate of 8.1 percent. Whereas the interest on PIFF account (personal loan) is 7.1 percent.
Personal loan interest rates range from 10.50 percent to 17 percent or 18 percent.
PIFF Loan Terms
- To apply for PPF loan, your PPF account (PPF account) should be at least one financial year old.
- You can apply for a loan when your PIFF account is 5 years old.
- You can take only 25 percent of the amount as loan from PPF account.
- PIFF loan facility is available only once. This means that if you apply for a loan, you will not get the loan.
How to Apply for a PIFF Loan
- The form for dealer loan will have to be filled in the bank in which your PIFF account is opened.
- Form-D has to be filled for PPF loan in State Bank of India (SBI).
- In the form, you will have to write the loan amount along with the payment period.
- If you have taken any loan, you will also get its information in that form.
- After this you will also have to submit the PIFF passbook () along with the form.
- After the complete loan process, the loan amount will come to your bank account in about 1 week.
