PPF Calculator — InsightfulDhull

📅 Account Opening Details — Enter to Calculate

Opening Month

Opening Year

Investment Mode

Lumpsum (₹1.5L / yr) Monthly (₹12,500 / mo)

Deposit Timing

Before 5th After 5th

Account Opened

—

Maturity Date

—

Loan Window

—

25% of 2nd preceding yr balance

Withdrawal From

—

50% of eligible balance, once/yr

Total Invested

—

₹1,50,000 × 16 years

Maturity Amount

—

Interest Earned

—

Premature Closure

—

Min 5yr lock-in, 1% penalty

📊 All 4 Scenarios

📈 Year-wise Growth

🏦 Loan Details

💰 Withdrawal

🔄 Extension & Closure

Comparison of All 4 Investment Scenarios

💡 Why Timing of Deposit Matters in PPF

Interest is calculated on the minimum balance between the close of the 5th day and end of each month. A deposit made AFTER the 5th means the balance on the 5th is lower — so that entire month's interest is LOST on that deposit. Over 16 years, this compounds into a significant difference.

Closing Balance Each Year — All 4 Scenarios (₹)

Yr	Financial Year	Lumpsum Before 5th ⭐	Lumpsum After 5th	Monthly Before 5th	Monthly After 5th

Year-wise Growth Table

—

Yr	FY	Months	Opening Balance (₹)	Annual Deposit (₹)	Interest Earned (₹)	Closing Balance (₹)	Loan Eligible	Withdrawal Eligible

📊 Summary for Selected Scenario

Total Invested: — | Total Interest Earned: — | Maturity Amount: —

🟢 Green rows = Loan eligible years 🟡 Amber rows = Withdrawal eligible years 🔵 Teal row = Maturity year

Loan Facility — PPF Account

📋 Key Rules for PPF Loan

Available after 1 year from end of opening FY and before expiry of 5 years from end of opening FY
Maximum: 25% of balance at end of 2nd preceding financial year
Only ONE loan at a time — previous loan must be fully repaid before fresh loan
Only ONE loan per year
Not available on discontinued accounts. Loan not available after withdrawal period starts.

Year-wise Loan Eligibility Window

Loan Year (Yr)	Financial Year	Based on Balance of	Balance (₹)	Max Loan — 25% (₹)

Loan Repayment & Interest Structure

✅ Repaid Within 36 Months

Loan interest rate:

1% p.a.

Repayment of PRINCIPAL: Lump sum or installments within 36 months from first day of month following sanction month.

Repayment of INTEREST: In max 2 monthly installments AFTER full principal is repaid.

⚠️ NOT Repaid Within 36 Months

Penal interest rate:

6% p.a.

Higher rate applies from the first day of the month following sanction, till the last day of month in which loan is finally repaid.

Penal interest is debited to the account at end of each year. Accrues to Central Government.

🧮 Sample Calculation (Year 3 Loan)

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⚠️ Important Conditions

In case of death of account holder, nominee/legal heir must repay outstanding interest on loan at the time of final closure
Interest on outstanding loans not repaid within 36 months is debited to account at end of each year
Account holder is entitled to only ONE loan in a year — fresh loan not allowed till earlier loan is fully repaid with interest

Partial Withdrawal Facility

📋 Key Rules for Withdrawal

Available only after expiry of 5 years from end of opening financial year
Amount: 50% of LOWER of (balance at end of 4th year preceding withdrawal year) OR (balance at end of preceding year)
Allowed ONCE per year only
Only from active, non-discontinued accounts
Outstanding loans must be fully repaid before withdrawal

Year-wise Withdrawal Eligibility

Year	FY	4th Preceding Yr Balance (₹)	Previous Yr Balance (₹)	Lower of Two (₹)	Max Withdrawal — 50% (₹)

⚠️ Special Withdrawal Rules

For accounts extended with deposits (5-year block): total withdrawal during block period cannot exceed 60% of balance at start of that block period
For accounts continued without deposits after maturity: one withdrawal per year of any amount (within balance) is allowed
The "lower of two" formula protects the scheme corpus — since balance grows over time, the 4th preceding year balance is generally the lower figure

Options at Maturity (—)

Option A — Close & Withdraw

Take the full maturity amount along with due interest. Interest is paid till the last day of month preceding the closure month.

Action: Apply to branch with passbook.

Tax: Fully tax-free (EEE status).

Option B — Continue WITHOUT Deposits

No deposits required. Balance earns interest at scheme rate. Withdraw any amount once per year.

Caution: If continued without deposits for more than 1 year, cannot switch back to "with deposits" option.

Option C — Extend WITH Deposits

Extend for further 5-year block period(s). Can be extended multiple times in 5-year blocks.

Withdrawal during block: Max 60% of opening block balance, once per year.

Deadline: Apply in Form-6 within 1 year of maturity.

⏰ Extension Deadline: —

The option to extend with deposits must be exercised within 1 year of the maturity date. If missed, any new deposits will be treated as irregular and refunded WITHOUT interest. However, the maturity corpus continues to earn interest till final closure. Once an extension option is given, it cannot be withdrawn.

Premature Closure

🔒 Minimum Lock-in: 5 years from end of opening FY

Premature closure is NOT allowed before —. This restriction applies strictly — no exceptions for any reason before this date.

Interest Penalty

On premature closure, interest is reduced by 1% per annum for the ENTIRE period since opening (or since start of current extended block).

If PPF rate = 7.10%, premature closure gives effective 6.10% on the entire corpus. This can mean a loss of ₹50,000 to ₹1,00,000+ depending on balance.

Allowed Grounds Only

Life-threatening disease of account holder, spouse, dependent children or parents — with medical authority reports
Higher education of account holder or dependent children — with admission documents and fee bills
Change in residency status (NRI) — with passport copy and visa/income tax return

Additional Protections

🛡️ Attachment Protection: PPF balance CANNOT be attached under any court order or decree for any debt or liability of the account holder. Statutory protection.

⚠️ Discontinued Account: If minimum ₹500 not deposited in any year, account is discontinued. Revival: Pay ₹50 fee + ₹500 arrears per default year. Loan and withdrawal facilities blocked till revived.

📝 Key Notes on Eligibility

NRIs and HUFs are NOT eligible to open PPF accounts. NRI accounts cannot be extended after maturity.
Joint accounts are NOT allowed. Only individual accounts permitted.
Maximum limit of ₹1,50,000 per year is COMBINED across the depositor's own account and any minor child's account.
One account per individual (excluding minor accounts held as guardian). One minor can have only one account.

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