SBI PPF: Is Public Provident Fund money withdrawal possible before maturity? Answer is here

Public Provident Fund (PPF) is a long-term financial instrument and there is a lock-in period of 15 years, after which an individual can withdraw full amount. What if you are in urgent need of money and there is no other sources to fall back on? There are ways you can withdraw a portion of your saving in PPF. A PPF account holder can also avail of a loan from the account before maturity. 

Customers can avail of a loan from the PPF account from the third year of their policy.  However, premature withdrawals can be made from the start of the seventh financial year. Account holders can make one withdrawal every year from the seventh financial year of the policy. However, the withdrawal amount should not exceed 50 per cent of the balance of the customer credit at the end of the fourth year immediately preceding the year of withdrawal or the amount at the end of the preceding year, whichever is lower, according to the information available on SBI official website.

Under certain circumstances, premature payment from the PPF accounts is allowed only after the accounts complete five years.  The amount can be withdrawn if it is required for the treatment of serious ailments of the account holder, spouse or dependent children or parents. For that, the account holder has to produce supporting documents from a competent medical authority.

Account holders can also withdraw their money from PPF account if the money is required for higher education of the account holders. For that, the account holders have to submit documents and fee bills provided by the admission authority of a recognised institute of higher education in India or abroad.