1. What is a PPF Loan Calculator for SBI?

Definition: This calculator determines the maximum loan amount you can avail against your Public Provident Fund (PPF) account with State Bank of India.

Purpose: It helps PPF account holders understand how much they can borrow against their PPF balance during the active contribution period.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Loan \) — Maximum loan amount ($)
• \( Balance \) — Current PPF account balance ($)

Explanation: SBI allows you to borrow up to 25% of your PPF balance from the 3rd financial year until the 6th financial year of account opening.

3. Importance of PPF Loan Calculation

Details: Proper calculation helps in financial planning while ensuring you don't over-borrow and maintain your PPF account's health.

4. Using the Calculator

Tips: Simply enter your current PPF account balance in dollars. The calculator will show the maximum loan amount available.

5. Frequently Asked Questions (FAQ)

Q1: When can I take a loan against my PPF account?
A: You can take a loan from the 3rd financial year until the 6th financial year of account opening.

Q2: What is the interest rate on PPF loans?
A: SBI charges 1% interest on PPF loans, which is significantly lower than personal loan rates.

Q3: How many times can I take a loan against PPF?
A: You can take one loan per financial year, with a maximum of three loans during the entire loan eligibility period.

Q4: What is the repayment period for PPF loans?
A: The loan must be repaid within 36 months (3 years) from the date of loan disbursement.

Q5: Can I take a second loan before repaying the first?
A: No, you must repay the first loan in full before applying for a second loan.