Personal Loans or Loans Against PPF? Personal Finance Tips by PaySense
Loan against Public Provident Fund or Personal Loan? Which is a better option for you? Let’s compare and find out. Money you can get as a loan: For a personal loan, your repayment capabilities can get you a loan anywhere between ₹5000 and ₹2,00,000, while for a loan against PPF, if your PPF account had ₹3,00,000 two years ago, then you are eligible for 25% of it as a loan which equals ₹75,000. Loan tenure: personal loans offer loans payable over up to 60 months, while loans against PPF offer up to 36 months. Documents required: personal loans require a proof of identity, of address and of income while loans against PPF don’t require any document. Interest rate: personal loans offer interest in the range of 10.25% to 23% Loans against PPF offer interest rates 2% more than the current interest rate that they offer on a balance. With a personal loan you can instantly get a second loan once the previous loan is paid. In fact, in some cases simultaneous person loans are also available depending on the retail and capability but in a loan against PPF, no second loan is available in a fiscal year, even if the first loan is repaid in full. So decide the loan plan which best suits your need! Subscribe for more tips!