Top 5 Lesser Known Facts About PPF Scheme 2025

PPF Scheme 2025:

The Public Provident Fund (PPF) is one of the most trusted saving schemes in India. Backed by the Government of India, it is designed for people who want safe investments with steady returns and tax benefits. Many households prefer PPF over regular savings accounts because of its long-term security.

PPF Scheme 2025:

At present, the interest rate on PPF is 7.1% per year, compounded annually. The Ministry of Finance reviews this rate every quarter, but once declared, it remains fixed for that period. The scheme encourages people to save regularly and create a financial cushion for the future.

Here are five important facts about the PPF scheme that every investor should know:

1. Flexible Tenure Beyond 15 Years

The minimum lock-in period for PPF is 15 years. However, after maturity, investors can extend it in blocks of 5 years. This allows them to continue earning interest without withdrawing their money.

2. Partial Withdrawals After 7 Years

Though the scheme runs for 15 years, investors can make partial withdrawals after completing 7 years. This feature helps during financial emergencies without closing the account.

3. Loan Facility Against PPF

Account holders can also take a loan against their PPF balance before completing 6 years. The loan amount can be up to 25% of the balance available two years prior to applying. This loan must be repaid within 36 months.

4. Protection From Creditors

One unique advantage is that PPF funds cannot be seized for debt recovery. A Gujarat High Court ruling ensures that the account remains secure, even in case of financial liabilities.

5. Investment Limit of Rs 1.5 Lakh Per Year

The minimum yearly deposit is Rs 500, while the maximum is Rs 1.5 lakh. Deposits beyond this limit are accepted but do not earn interest or tax benefits.

The PPF scheme remains a preferred choice for individuals seeking low-risk savings, tax benefits, and guaranteed returns. For those looking to build a long-term financial plan, PPF continues to be one of the most reliable investment tools in India.

ALSO READ: PPF Interest Rate for October-December 2025 Announced