All You Need To Know About PPF Loans

Public Provident Fund or PPF has, for decades, been one of the most popular type of long term investment option. With the variety of advantages that it carries such as tax benefits and exemption from wealth, debt and liability tax, PPF accounts are easy to open and operate and offer a longer lock-in period for maximizing savings. Also, these investments are risk free and offer a modest rate of interest. However, among all the aforementioned benefits, not many people are quite aware that PPF accounts also come with a loan facility, which means that, account holders can avail a loan on their PPF account from the 3rd year of investing and till the end of the 6th year of investing.

Loan on ppf account

If you want to redo the furnishings of your house or wish to purchase a high end home theatre system, you always have the option of taking a personal loan. But personal loans, being mostly unsecured, will charge you a high rate of interest, sometimes as high as 14% to 16%. The interest alone can make quite a dent in your finances. If you are looking for alternative options to fund those purchases, you can always pursue the option of PPF loans.   If you have accumulated a fair amount in your PPF account over the years, then you are definitely eligible to take a loan on your PPF account.

However, before you  pursue this loan option, here are a few things which you must remember.

When Can You Take A Loan

As you know, a PPF account has a maturity period of 15 years. Before this period, account holders can only make partial withdrawals from their accounts 5 years from the end of the financial year in which the first subscription had been made. However, the facility of taking a loan on a PPF account is available from the beginning of the 3rs fiscal year up to the 6th fiscal year.

How Much Loan Can You Take

Account holders can avail a loan on their PPF account up to a maximum limit of up to 25% of the balance that is in their account at the end of the 2nd year, before the year in which the account holder has applied for the loan. For example, if the account holder has applied for the loan in the year 2015-2016, then they will get a loan up to an amount that is 25% of the balance in their PPF account at the end of the fiscal year 2013-2014. As mentioned earlier, the loan facility will only be available from the 3rd year to the 6th year. There will be no loan facility available from the 7th year onwards, as at the onset of the 7th year, the account holder can make partial withdrawals from their account.

Who Is Eligible To Avail A PPF Loan

A PPF account holder is eligible to take a loan on their account from the 3rd year and up to the 6th year of account opening. One needs to hold a regular account in order to avail this facility. Also, if the account holder has not made a minimum of one investment in one fiscal year for a minimum amount of Rs 500, they will not be eligible to avail the loan facility. Account holders can only have one loan on their PPF account in one year.

Interest On Loan

As compared to a personal loan, a PPF loan is a much more affordable option. The interest applicable on a PPF loan 2% more than the interest that is applicable on the PPF deposit. So, if the applicable interest rate is 8.7%, then the interest rate on the loan will be charged at 10.7% p.a.  Do remember that this interest rate is not fixed and will be subject to change if the PPF interest rate is increased. So, if the PPF interest rate is increased to 8.9%, then the interest applicable on the loan will also go up to 10.9% p.a.

Repayment of Loan

Repayment terms of loans on PPF are quite different from other loans such as personal loans or home loans.

  • A PPF loan must be repaid within a period of 36 months, counting from the first day of the month in which the loan had been sanctioned. For example, if the loan has been sanctioned on Jan 1, 2014, then it must be repaid by or before Jan 30, 2017.
  • The loan taker must repay the principal amount of the loan first. Following the successful repayment of the principal amount, the interest accumulated on the loan amount must be paid in a maximum of two monthly installments.
  • Repayment of the loan can be done either in one of more monthly installments or in lump sum.
  • If the interest amount has not been paid, following the payment of the principal amount, within the period of 36 months, then the amount of interest chargeable on the loan will be automatically deducted from the loan taker’s PPF account.
  • In the unlikely event that the loan taker has not paid the principal amount of the loan within the given period of 36 months, then the interest amount will be hiked by 6% above the rate of PPF. The amount of interest in this case will then be debited from the loan taker’s PPF account balance at the end of the financial year.

Troubleshooting EPF Related Errors With The UAN HelpDesk

For the convenience of employees working in organizations across India, the Employees Provident Fund Organization has set up a special UAN Helpdesk. This online portal that is available on the EPFO website will allow employees to resolve multiple EPF related issues online.

1. EPFO-UAN-portal

The EPFO has introduced the UAN or Universal Account Number to solve a majority of provident fund related issues that employees commonly face. The UAN is a 12 digit number that is given to every salaried employee by their employer. With this UAN, employees can link all their varied PF accounts which they have held with present and past organizations under one account for ease of withdrawal, transfer and claim.

2. EPF-UAN-online-helpdesk-EPF-member-subscriber-pic

The UAN HelpDesk has been set up to assist employees with any issues they may be having with their EPF account. There are certain issues which one can resolve with the help of the UAN HelpDesk. Let’s take a look at them.

  1. What Is My UAN

The UAN is a 12 digit number that is provided to all members by the EPFO. You can find out your UAN Number by placing a request with the UAN HelpDesk.

3. EPF-UAN-Heldesk-register-your-issue-pic

  1. Incorrect Details – Name, Father’s Name, Date of Birth, date of Joining

Employees can place a request for a change of personal details such as their own name, father’s name, their date of birth or date of joining an organization, if the same has been incorrectly recorded at the time of enrolling.

  1. Passbook Problem

If you are facing any issues with regards to your EPF Passbook, you can resolve the same by visiting the UAN HelpDesk.

4. EPF-UAN-online-Heldesk-how-to-update-new-mobile-number-how-to-get-new-UAN-login-password-pic

  1. SMS Not Received during UAN Activation

In case the employee has not received any SMS from EPFO at the time of activating their UAN number, they can rectify the same by visiting the UAN HelpDesk and add their mobile number for future correspondence.

5. EPF-UAN-Heldesk-incorrect-name-father-name-dob-doj-details-correction-pic

  1. Details Not Matching During UAN Activation

This is one of the more commonly occurring errors for EPF members where they are unable to activate their UAN due to a discrepancy in the details entered. This issue can be resolved by visiting the UAN HelpDesk and submitting a request.

  1. KYC Pending With Employer

If a member has their KYC or UAN linking pending to be completed  with their employer, they can request for it to be done via the HelpDesk.


How You Can Correct EPFO Details Online & Offline

As employees or employers, most of us are familiar with terms such as Provident Fund (PF) and UAN (Universal Account Number) which regularly may figure on our pay slips or at times when we have begun working in a new organization. Provident Fund or more commonly known as PF or EPF (Employees Provident Fund) is basically a retirement benefit scheme which is applicable to all individuals working as salaried employees. It is basically a portion that is deducted from your salary which is put away in a Provident Fund which can be used by the employee in times of need or even upon retirement. UAN is a 12 digit Universal Account Number which is allotted to all employed/salaried individuals by the EPFO (employees Provident Fund Organization).


When switching jobs, individuals can either choose to withdraw their PF balance or transfer the same to the new organization with the help of the UAN. However, if the details entered in the EPF account may be incorrect, employees may face issues or be unable to withdraw of transfer their balance.

However, observing that the error of incorrect information, such as the employee’s name, father’s name, date of birth or date of joining, being entered in the employee’s EPF account can cause problems in times of need, provisions have now been made so that employees can easily change such crucial details online on the EPFO website or by visiting the EPFO branch office in their city. The EPFO website is currently in the process of bringing several services which were otherwise available only at the branch office, to their online website.

Correction of EPF Related Details Online

Several employees have faced the trouble of not being able to withdraw their PF amounts because their details such as a parent’s name, date of birth or date of joining an organization were incorrectly entered in their EPF account. For correction of any EPF related details, you must have access to your UAN portal where you can login and view your UAN account. Once you have logged in to your UAN account, you can change your password, change your mobile number or email ID on which you would like to receive correspondence about EPF related information and requests.

However, if you have forgotten your UAN login ID and password, you will have to get in touch with the UAN Helpdesk on the UAN EPFO Portal.

UAN Helpdesk Portal

The UAN Helpdesk Portal has been introduced to resolve various commonly occurring problems or issues which employees are most likely to face relating to their EPFO accounts. To register a issue, customers can navigate to the EPFO website and go to the UAN Help Desk Portal Tab. One there, you need to click on the ‘Member’ tab, following which you will be re-directed to a new page. After you have logged in to your EPF account, the new page that has opened on your browser will display your UAN number along with a drop down menu from which you can select the problem you are facing. The issues which you can resolve from this portal include:

  1. Generate your UAN Number in case you do not remember the existing one.
  2. You do not remember your password and have changed your mobile phone number due to which you cannot generate an OTP and login to the UAN portal.
  3. If personal details such as your father’s name, date of joining, date of birth, etc. have been incorrectly entered.
  4. During UAN activation, the details entered are not matching.
  5. You want to check the claim status of your PF Transfer or EPS.
  6. You want to check the status of liking your UAN Number with your EPF account.
  7. Your KYC is not yet complete with your employer.
  8. Any other issue which you wish to rectify.

Once you click on the specific problem, you will be asked to generate an OTP that will be sent to the mobile number which you have registered with your EPF account. Once the OTP has been successfully accepted by the website, you will get a reference ID for the request which you have placed. You will also get a message on your registered mobile number with the reference ID of the request and you will be contacted shortly by the EPF department with the solution to your issue.

For example, you want to change the details regarding your joining date changed which has been entered incorrectly in your EPF account. One you have put in your request, you will get a message on the screen with the reference ID of your request. You will also get a message on your registered mobile number with the reference number for your request and that the EPFO will contact your shortly.

While the UAN portal can help you find out and resolve multiple commonly occurring problems, the website is still under transition and may not offer an online solution to all your EPF related issues. In this case, you are advised to contact your employer who may be able to assist you with the process of detail correction.

Correction of EPF Related Details Offline

Employees can also get the correction of their EPF details done offline. Corrections such as change of name, change of father’s or spouse’s name, change in date of birth, change in date of joining or leaving an organization or change in address can be carried out offline. Following are the loose steps involved in resolving some of the aforementioned EPFO related details offline.

1. Change of Name

To get your name changed in your EPF account, you will need to submit an application, providing all the necessary documents, through your employer. The documents which you may be required to furnish may include your PAN card, Passport, Driving Licence, Voter ID Card, ESIC ID Card, Aadhaar Card, Ration Card, copy of bank or post office passbook, academic certificate, copy of your utility bills (water, electricity, telephone that is in your name), etc.

2. Change of Father’s or Spouse’s Name

The procedure for change of father’s or spouse’s name is similar to that of name change. The documents required in this case may be different. However, the process followed I the same and you will have to submit the application, along with the necessary documents to the EPFO Field Office.

3.   Change in Date of Birth

The procedure for change in date of birth of the employee is also similar to that of name change. The documents required in this case may be different. However, the process followed is the same and you will have to submit the application, along with the necessary documents to the EPFO Field Office.

4. Change in Date of Joining / Leaving

For this too the procedure followed is the same as the previous request. Documents required may be different and will need to be submitted along with the correct form to the EPFO office through the employer.

5. Change of Address

The option to change details of your address is not available on the portal. The same can currently only be changed at the time of withdrawing or transferring your PF. You will need to provide your address proof for this.

Problems which May Arise Due To Incorrect Details in EPF

Errors in EPF account details occur quite commonly and people may often also tend to ignore resolving them immediately. However, these very errors can become the cause of a lot of frustration when hinder your PF transfer or withdrawal.

Once you have submitted all the required documents and forms through your employer to the concerned EPFO Field office, you must ensure that you keep track of the status of your request. This is necessary to avoid a repeated error in the recording of your details. Entering or incorrect details in your EPF can raise many other problems besides the difficulty in withdrawal or transfer. Ensure that your EPF account details entered are correct while you are still working with the organization rather than when you have left it.Some of the other problems are:

  • Your form may be rejected if your details have been misspelt or entered incorrectly in the EPF records at the time of enrolling.
  • It is important that your date of joining is mentioned correctly for accurate calculation of the EPF contribution and also for EPS Pension. Withdrawal of PF is free of tax after a period of 5 years.
  • You can face trouble during the claim process if the details of your nominee are not mentioned correctly. If the EPF member is getting married, they must update their nominee details as well.

HDFC Personal Loan Interest Rates 2017

HDFC Bank is one of India’s most trusted and widely used banks. Personal loans from HDFC Bank are among the most popular in India because of the affordable interest rates, flexible tenure options, and friendly terms and conditions.

HDFC Bank has over 4,000 branches in the country, and has been rated among the top banks for customer service and financial solutions.

HDFC Bank personal loans.

Up to Rs.25 lakh can be taken out as loan under HDFC Personal Loan. The total amount of money that can be borrowed, however, depends on the borrower’s profile. Factors such as monthly income / profit, tenure option chosen, reason for borrowing, existing loans, etc. all affect the total amount that can be borrowed. The interest rate also will be affected very slightly depending on factors like these.

Eligibility criteria for HDFC bank personal loans


  • Age: People applying for personal loans must be above the age of 21, and under the age of 60 at the time of applying for a personal loan from HDFC Bank.
  • Employment requirements: People applying for personal loans from HDFC Bank must have at least 2 years of official work experience, and at least 1 full year completed with the current employer. Loans are not approved to those who have no source of regular income, except in the case of businessmen who are able to prove their creditworthiness and repayment capacity.
  • Income / profit requirements: Salaried individuals / professionals / etc. who are paid a fixed amount each month need to be earning a minimum net income of Rs.12,000 per month. If the applicant resides in Delhi, Mumbai, Pune, Hyderabad, Ahmedabad, Cochin, Bangalore, or Chennai, the minimum monthly net income required is Rs.15,000.



It should be noted that merely fulfilling these criteria won’t be enough to have a personal loan approved, but it will get your application to the next stage of the verification process.

While processing an application, banks usually start with assessing the borrower’s capability to repay the loan by studying his / her credit information report from any credit information company.

HDFC Bank personal loan interest rates.

Currently, the bank disburses loans with interest rates in the following range: 12.50% to 19.50% per annum*.

The bank charges a one-time processing fee of 2.5% of the loan amount.

HDFC Personal loans can generally be taken for a tenure of 1 year, or up to 5 years.

There is a pre-closure fee of 4% of the Principal Outstanding in the second year.

The interest rate is determined by many factors like the applicant’s credit history, loan amount required, tenure option chosen, etc.

Explore more info here: HDFC Personal Loan Interest rates

Benefits of HDFC Bank personal loan.

Some perks and benefits of taking on the HDFC Bank personal loan are:

  • Service right at your doorstep.
  • The loans do not require any guarantor, security, or collateral.
  • Balance transfer facility is active on personal loans.
  • The bank usually responds to applications within 3 working days.

*Please note that all promotions, amounts, tenures, repayment requirements, time frames, interest rates, other rates, charges, fees, ceilings, requirements, criteria, features, benefits, exclusions, calculations, ratios, averages, percentages, ratings, services provided, terms and conditions mentioned above are as of August, 2016, and are subject to change at any time. All banks / NBFCs / insurance providers / financial service providers / companies, etc. mentioned above retain all rights to modify, replace, or add to or subtract from any of the above, in any way, at any time, and at their own discretion. You are requested to reconfirm the same with your chosen bank / company / NBFC / insurance provider / financial service provider, etc. before making any financial commitments.


Changing jobs? This is what you need to keep in mind while transferring your PF money

The Employee Provident Fund (EPF), which was enacted in 1952, is a government-backed savings scheme to encourage the working class to save responsibly for retirement. Considering that everything else has tax slapped on it, it’s refreshing to think of a saving scheme that is tax-free – once it reaches maturity that is. Those who park their money in this saving scheme, reap the benefits upon maturity – as an 8.8% interest rate per annum is set against the outstanding amount. For example, if you are earning a salary of Rs.25,000, after 35 years you could expect a saving of approximately Rs.1 crore at your disposal. The biggest mistake people make is to withdraw their PF savings after every job change rather than transfer it, in such cases, if the savings is below a period of 5-years (a premature withdrawal), then you can expect tax to be levied on the amount. For most people, transferring a PF account if you are shifting jobs seems like a tedious task. Well, it was but it isn’t any more. If you are shifting jobs or if you are branching into a new line of work, this is what you have to keep in mind regarding transferring or withdrawing your PF money.

PF Money.jpg

If you have not made any contributions towards your account in the last 36 months (3 years), then your account will be classified as a dormant account. As of April 2011, the Government decided to classify such inoperable accounts as ‘dormant’ to discourage people from just stashing their money in their PF accounts without making contributions. In such cases, if the account is deemed ‘dormant’, then the interest (8.8% p.a.) is halted. Thus, parking your savings in an inoperable or dormant account is of no way beneficial.

What you need to do to transfer your PF money:

  • The introduction of the UAN (Universal Account Number) has made the process of transferring PF money easy. For those who do not know, a UAN number is a 12 digit code given to employees holding a PF account that is issued by the EPFO (Employees’ Provident Fund Organisation). The number will help identify the employee’s Provident Fund account despite multiple shifts between organisations.
  • To transfer the PF account after a job shift, one needs to give his/her employer the UAN – giving them access to make the monthly contribution.
  • Transfer of funds can be done online and offline. For the online transfer of funds, the employee has to get a digital signature from his/her employer to forward the process. Whereas, for the offline process, the employer has to submit the EPF transfer form with the new employer, who will then contact your previous employer to process the transfer.
  • The whole process roughly takes 2-3 weeks, following your date of joining the new company.

For instance, if you have quit working and haven’t made any contributions towards your Provident Fund for a couple of months or more, or you want to branch into another line all together, you can withdraw the money using Form 19. The form can be downloaded from the EPFO’s website. Though this is not suggestible, as it defies the very purpose of the scheme, withdrawing the amount will result in you bearing a tax amount. If you have withdrawn the amount before five years of continuous employment (and PF contributions of course), and the outstanding savings amount is Rs.50,000 plus, a 10% deduct tax at source (TDS) will be levied on the withdrawal by the EPFO. Since you now know the consequences of making a premature withdrawal, it is advisable to withdraw your PF savings after 5 years as it is then tax-free, although the ideal situation would be to park your savings and reap the benefits once you’ve called the curtains on your career.