Sarkari Yojana
Public Provident Fund Account(PPF)
About Public Provident Fund Account(PPF)
Operated by the Department of Posts, Ministry of Communications, the Public Provident Fund (PPF) Scheme gives individuals a safe, long-term way to invest, currently earning interest at 7.1% per annum, a rate the government revises from time to time. Opening a PPF account requires a minimum deposit of ₹500 in a financial year, while deposits can go up to ₹1,50,000, and investors may deposit the amount as a lump sum or spread across several instalments within the year, making it a disciplined and convenient savings route.
Scheme Overview
Central Government
Ministry Of Communication
Individual
Scheme Details
Eligibility Requirements
To qualify for Public Provident Fund Account(PPF), applicants must satisfy the following conditions:
An individual is permitted to open an account
An individual is permitted to open an account.
An individual acting as guardian may also open…
An individual acting as guardian may also open one account for each minor, or for a person with mental illness or intellectual disability under their guardianship, though only one account may be opened in the name of any such minor or person, regardless of which guardian opens it. Note: This Scheme does not permit joint accounts. Note: Accounts may also be opened through the e-Banking facility, though a Post Office Savings Account is a prerequisite for accessing internet banking (Please visit www.ebanking.indiapost.gov.in)
Benefits Provided
Public Provident Fund Account(PPF) provides the following benefits to eligible applicants:
Interest rate, periodicity, and other terms: 7.1% per annum. Minimum amount to open the account and maximum balance retainable: minimum INR. 500/-, maximum INR. 1,50,000/- in a financial year, with deposits allowed as a lump sum or in instalments. Deposit
The minimum deposit in a Financial Year is…
The minimum deposit in a Financial Year is ₹ 500/-, and the maximum is ₹1.50 lakh.
This ₹ 1.50/- lakh ceiling covers deposits made…
This ₹ 1.50/- lakh ceiling covers deposits made both in the holder's own account and in any account opened on behalf of a minor.
Deposits may be made in any number of…
Deposits may be made in any number of instalments within a FY, each a multiple of ₹ 50, up to the ₹1.50 lakh cap.
Later deposits can also be routed through internet…
Later deposits can also be routed through internet banking (NEFT/RTGS) from another bank.
Deposits are eligible for deduction under section 80C…
Deposits are eligible for deduction under section 80C of the Income Tax Act. Interest
Interest, as notified periodically by the Ministry of…
Interest, as notified periodically by the Ministry of Finance, accrues for a calendar month on the lowest balance held between the close of the fifth day and the end of that month.
Interest is credited to the account at the…
Interest is credited to the account at the close of each year.
Interest earned is exempt from tax under the…
Interest earned is exempt from tax under the Income Tax Act. Loan and Repayment
Between the end of one year from the…
Between the end of one year from the end of the year of the initial subscription and before 5 years have elapsed from that year, the account holder may apply for a loan of up to 25% of the balance standing to their credit at the end of the second year immediately preceding the year of application (for instance, a loan taken in 2025-26 is based on 25% of the balance as on 31.03.2024).
The loan principal must be repaid within 36…
The loan principal must be repaid within 36 months of the first day of the month following the month in which it was sanctioned.
Once the principal is fully repaid, interest on…
Once the principal is fully repaid, interest on it is payable in no more than two monthly instalments at 1% per annum, calculated from the first day of the month after the loan was drawn through to the last day of the month in which the final instalment is repaid.
Should the loan remain unrepaid, or only partly…
Should the loan remain unrepaid, or only partly repaid, after thirty-six months, interest on the outstanding amount rises to 6% per annum instead of 1% per annum, applied from the first day of the month following the month the loan was taken until the last day of the month it is finally repaid.
Only one loan is permitted per account holder…
Only one loan is permitted per account holder in a year.
A fresh loan cannot be taken until the…
A fresh loan cannot be taken until the previous loan, together with its interest, has been repaid in full.
Documents Required
Applicants should keep the following documents ready before starting the application:
Proof of identity, such as an Aadhaar card,…
Proof of identity, such as an Aadhaar card, PAN card, Voter ID, or Passport
Proof of address, such as Aadhaar, an electricity…
Proof of address, such as Aadhaar, an electricity bill, or a bank statement
Passport-size photographs
Passport-size photographs
An initial deposit slip or cheque
An initial deposit slip or cheque
How to Apply
Offline Application
Applicants can apply for Public Provident Fund Account(PPF) through the offline application process outlined below.
Go to the nearest Post Office and obtain…
Go to the nearest Post Office and obtain the Account Opening Form along with the KYC Form.
Complete the forms accurately and attach the necessary…
Complete the forms accurately and attach the necessary documents, such as PAN, Aadhaar, or another valid ID proof.
Hand in the filled forms with the supporting…
Hand in the filled forms with the supporting documents at the Post Office counter.
Pay in the minimum amount of ₹500 via…
Pay in the minimum amount of ₹500 via cheque.
Once verified, the account is opened and the…
Once verified, the account is opened and the details are shared with you.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.