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      PPF Withdrawal Rules: How to Withdraw Your Partial & Complete PPF

      • 5 min read
      • Last Modified Date: January 10, 2024
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      So, what exactly is PPF Withdrawal? Withdrawing money from your PPF account is not easy. You have to apply for it and then wait for the government to approve your request. However, there are other options available as well that can help you withdraw some money from your PPF account.

      Also, read PPF: Eligibility, Tax Benefits, Interest Rate, How to Open Online, Withdrawal.

      Is partial withdrawal possible in PPF?

      If you want to withdraw some money from your Public Provident Fund (PPF) account, you can.

      PPF is a long-term investment and not meant for daily use. Therefore, you must understand the rules regarding partial and complete withdrawals before making any decisions on whether or not to take advantage of this option. PPF is a long-term investment and not meant for daily use. Therefore, you must understand the rules regarding partial and complete withdrawals before making any decisions on whether or not to take advantage of this option.

      Also, read PPF Interest Rates for FY 2022-23 (October-December).

      Type of PPF Withdrawal

      Period

      Reason

      Amount

      On Maturity

      After 15 years

      Any

      Full Amount

      Partial Withdrawal

      After 6 years

      Any

      50% of the balance

      Premature Closure

      After 5 years

      Medical, Education

      Full Amount

      What is Complete PPF Withdrawal?

      After 15 years, a PPF account matures. You can remove the full corpus when it reaches maturity. You must send a completed Form C to the bank branch or post office where you hold your PPF account. Following that, the PPF will be canceled, and the corpus will be paid to your bank account.

      What is partial withdrawal?

      Partial withdrawal is the term used in the PPF scheme. It is one of the options available to you if you wish to withdraw a portion of your funds from your PPF account at any time before maturity. If you want to make partial withdrawals, some rules need to be followed carefully.

      Partial withdrawals can be made up until the end of the fourth year immediately preceding the year in which you wish to make a withdrawal. The amount that can be withdrawn as part of a partial withdrawal will depend on how much balance was available at that time and when it was withdrawn.

      Process of PPF Partial Withdrawal 

      You can withdraw a portion of your PPF balance if you are qualified. The following are the processes for withdrawing funds from your PPF account:

      Step 1: Download the PPF Withdrawal Form (Form C) on your bank’s website or pick it up at a branch. The PPF withdrawal form is divided into three sections: 

      • Declaration: You must enter your PPF account number and the amount of money you desire to withdraw here. Aside from that, you must state how long the account has been active.
      • Section for office use: Fill in the data such as account opening date, current total amount, date of last withdrawal (if any), total withdrawal made from the account, and so on.
      • A section on bank information: Bank account number and other necessary information about the account to which the withdrawn funds should be credited.

      Step 2: Include a copy of your PPF passbook with Form C.

      Step 3: Submit it to your local bank location.

      Your application will be handled as soon as possible, and the withdrawal amount will be approved. You can have the money put into your savings account or issued a demand draft (DD). You must indicate this on the form, put a revenue stamp on it, and sign it.

      What is the maximum withdrawal limit?

      The maximum amount that you can withdraw from your PPF account is 50% of the balance that you have at the end of the fourth year immediately preceding the year in which you wish to make a withdrawal OR 50% of the balance that you have at the end of the financial year in which you wish to make a withdrawal, whichever is lower.

      For example: if your PPF account was opened on October 1, 2017, and if it has been fully invested for 6 years (since October 2012), then any withdrawals made during 2018-19 would be limited till June 30, 2019, as per such rules.

      If your account has completed five financial years, then only you can apply for a partial withdrawal

      • If your account has completed five financial years, then only you can apply for partial withdrawal.
      • A partial withdrawal is a one-time payment from the PPF account that is not enough to meet your needs. It can be used as an emergency fund and also for paying off debts like credit cards or personal loans.
      • A complete withdrawal means that all your investments are sold off at once, including any interest accrued during this period (if any). If you want to make a complete withdrawal from the PPF corpus, it has to be done within one year of completing five years under its jurisdiction. However, there are some exceptions where such time limit may not apply such as when someone dies while they were still alive with their contribution in their account; even if they have lived longer than 50 years but did not get any payout due because he/she had made maximum contributions during his/her lifetime; when someone dies without making any contribution into his/her PPF account during his/her lifetime period.

      How many withdrawals are possible?

      From the seventh financial year onwards, you can make partial withdrawals once a year. Partial withdrawals can be made from the seventh financial year onward, after completing five years of contribution or before maturity.

      You cannot withdraw from your PPF account before maturity (after five years)

      You can withdraw your entire PPF amount after completing five years. However, you cannot withdraw a partial amount before maturity. In case of a financial emergency, you may also opt for a partial withdrawal, which will be considered under the above-mentioned rules and regulations.

      The PPF withdrawal rules apply to all types of accounts.

      Can I apply for a loan?

      However, you may apply for a loan against your PPF balance between the 3rd and 6th financial years.

      PPF allows partial withdrawal after 5 years. However, you may apply for a loan against your PPF balance between the 3rd and 6th financial years. In this case, the amount that will be taken as a deduction from your PPF account is limited to Rs 50 lakhs per annum (as per Section 80D of the Income Tax Act of 1961).

      PPF is a long-term investment. It allows you to withdraw your money after 15 years, but there are also options for withdrawing partial amounts within 5 years if required.

      PPF is a safe and secure investment that allows you to save money on your house or other assets. The interest rates are higher than normal bank deposits as well as fixed deposit rates offered by banks and other financial institutions in India.

      Conclusion

      The purchase of commercial or residential real estate is another better and more practical option. You can always choose real estate over any other traditional form of investment because it is one of India’s most lucrative endeavors. You can choose to invest in a variety of real estate assets on platforms like Assetmonk and generate impressive returns.

      Join Assetmonk without difficulty to start your path to real estate success in both the commercial and residential markets!

      PPF Withdrawal Rules: How to Withdraw Your Partial & Complete PPF FAQs

      Form C can be used to make a partial withdrawal from the PPF. You must also provide your passbook and affix a revenue stamp to the form at the time of submission. The form contains two sections that you must complete: basic information and acknowledgment.

      PPF is a long-term investment program with a 15-year period. Account holders may make partial early withdrawals from their PPF accounts after five fiscal years from the date the account was created, but only under particular conditions.

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