Loan: There is no need to pay much interest on personal loan, loan will be available at only 1% interest! Know how to apply
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PPF Loan: When most people need money, they take help from their friends or relatives. But when more money is needed, we think of taking a loan from the bank. Personal loan is given by the bank for personal purposes. The interest rate on personal loan is quite high. In such a situation, there is additional financial burden on the loan taker. But, we are telling you about such an option through which you can get a loan at only one percent annual interest. Besides, you will also get the option of easy installments to repay this loan. There is an option to take loan against the money deposited in the Public Provident Fund i.e. PPF account.
Why is PPF account special?
Public Provident Fund is a long term deposit scheme of the Central Government. Along with this, we get the trust of the government, hence it is a safe and popular investment option. At present, 7.1 percent interest is given by the Central Government on the amount deposited in PPF account. However, there has been no change in its interest since April 2020. Loan is easily available against the money deposited in this account and its process is also quite easy. Due to this, the money gets credited to the bank immediately. However, loan against the account can be taken only within five years of opening the account.
how much interest will be charged
Taking loan from PPF is much cheaper than personal loan. At present 10 to 21 percent interest is charged by banks on personal loans. But, actually only one percent interest has to be paid on PPF loan. Actually, the interest received on the amount deposited in PPF. Above that only one percent loan interest has to be paid. That means currently 8.1 percent interest has to be paid. 36 months time is given to repay this loan. However, if you do not deposit the interest on time, you have to pay 6 percent interest instead of 1 percent. Meaning, instead of 8.1 percent, 13.1 percent interest has to be paid.
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