PPF Amount Withdrawal for Home Loan Prepayment

POSTED BY Jipal Shah ON July 17, 2013 4:30 pm COMMENTS (2)

I have a PPF account which has completed 15 years in 2010. After that it has been extended and I have done some partial withdrawal in 2012.

Now I have taken a home loan, I want to do prepayment using that money. But as per bank, my PPF account is under 5 year lock period, so can not withdraw any amount or not close the account until 31st March 2015.

By any chance any other way to get that money.

Thanks !

2 replies on this article “PPF Amount Withdrawal for Home Loan Prepayment”

  1. Jipal Shah says:
    July 18, 2013 at 12:16 pm

    Thanks for the answer !

    Yes, I have extended the account so its in active state, but not sure about the how long is lock period and dont know that I cant close this in lock period.

    I have taken a home loan of 25L just some months ago, and my PPF account has around 3L.
    So, If I do prepayment of 3L, I will save more than 13Lacs interest of home loan.

    Reply
  2. Free Financial Calculators says:
    July 17, 2013 at 6:37 pm

    I think your bank is wrong. The ppf amount should be extended only you and not by them. Mature and inactive PPF accounts can be withdrawn anytime. Tell the bank reg. this. If they don’t agree, first write a complaint to the bank and if they don’t act to the banking ombudsman. There is no other way!

    That aside, may I ask two questions:

    1. why do you want to use this money for closing the loan?
    2. why close the loan in the first place?

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.