### PPF: When can one withdraw and how much?

POSTED BY ON September 26, 2010 1:26 am COMMENTS (2)

Hi,

I had opened a PPF account in Jan 2005 and every year did some contributions.

I heard that one can withdraw certain amount after some years.

Can somebody please tell me the exact rules? When can I withdraw the amount and how much?

Anand

## 2 replies on this article “PPF: When can one withdraw and how much?”

1. Hemant B says:

From start of the 7th year onwards you can withdraw money, once a year.

As you have mentioned you started your account in Jan 2005 you can withdraw it any time after 1st April 2010. Therefore, you should be able to withdraw money without a problem.

The amount you can withdraw is the lower of:(I treat if you are withdrawing today)

50% of the ppf balance that existed 4 years(31st March 2007) ago from the current date of withdrawal
Or, 50% of the amount at the end of the proceeding year(31st March 2010) – you will be surprised why this can be low. In case you have withdrawn some amount in earlier years(this is not possible in your case)

One withdrawal, once a year, is allowed from 7th year onwards. You can withdraw an amount not exceeding the lower of:
a. 50% of the balance at the end of the 4th immediately preceding year
b. 50% of the balance at the end of the immediately preceding year

Example: If the account was opened in 2005-06, and first withdrawal can be made during 2011-12. . The amount of withdrawal will be the lower of:
a. 50% of the balance as on March 31, 2008.
b. 50% of the balance as on March 31, 2011.

Facility of Loan:
In case of emergency situations before the 7th year, you can take loans from your PPF account. You can take loans between 3rd and 6th year of opening the PPF account.
The maximum loan amount available will be equal to 25% of the balance at the end of the 2nd immediately preceding year.

Example: In your example, if loan is sought in 2010-11, the maximum amount of loan available would be 25% of the balance as on March 31, 2009.

The rate of interest on the loan is usually 2% over and above the rate of interest you receive in the PPF account. This loan has to be repaid within a period of 24 months.

Once you repay a loan, another loan can be taken as long as you are within the 3rd and the 6th year of opening the account.