Personal Loan vs Loan Against PPF: Which is the Better Option in 2025?

When you’re in need of urgent funds—whether it’s for medical emergencies, education, home renovation, or a dream vacation—the two common options that often come up are a Personal Loan or a Loan Against PPF (Public Provident Fund).

At Bravima Solution Pvt. Ltd., we help individuals get access to personal loans via trusted NBFC partners. But if you have a PPF account, you might be wondering—should you go for a personal loan or take a loan against your PPF? Let’s break it down.

What is a Personal Loan?

A personal loan is an unsecured loan that doesn’t require collateral. It is offered based on your credit score, income, and repayment capacity.

Key Features of Personal Loans:

Quick disbursal
Flexible tenure (12–60 months)
No need for collateral
Higher interest rates (10%–24% depending on the lender)

What is a Loan Against PPF?

If you have a PPF account, you can borrow up to 25% of your PPF balance after the 3rd year and before the 6th year of investment. This is known as a loan against PPF.

Key Features of Loan Against PPF:

Lower interest rate (usually 1% above PPF interest)
Maximum loan tenure: 36 months
Must be repaid within 3 years
Limited loan amount (based on PPF balance)
No impact on credit score

Comparison: Personal Loan vs. Loan Against PPF

Feature	Personal Loan	Loan Against PPF
Collateral Required	No	Yes (PPF account)
Interest Rate	10% – 24% (approx.)	PPF rate + 1% (effective ~8%–9%)
Loan Tenure	Up to 5 years	Max 3 years
Loan Amount	Based on eligibility	Up to 25% of PPF balance
Processing Time	Fast (24–48 hours with NBFCs)	Depends on bank/post office
Credit Score Impact	Yes	No
Repayment Flexibility	High	Limited

When to Choose a Personal Loan?

You need a larger loan amount
You don’t have a PPF account or it’s less than 3 years old
You want longer repayment tenure
You need quick disbursal
You want to build or improve your credit history

👉 Bravima Solution can help you get a quick personal loan with flexible EMIs and minimal paperwork—ideal for salaried and self-employed individuals.

When to Choose a Loan Against PPF?

You have a PPF account older than 3 years
Your funding needs are small to moderate
You want to avoid high interest costs
You prefer a low-risk borrowing option
You don’t want your credit score to be impacted

Final Verdict: Which One is Better?

Both loan options serve different financial needs. If you’re looking for a low-cost short-term loan, and have an active PPF account, a loan against PPF can be a smart move.

However, if you need a larger amount, faster disbursal, and longer repayment options, a personal loan through Bravima Solution’s NBFC partners would be the better choice.

Need Help Choosing the Right Loan?

At Bravima Solution Pvt. Ltd., we help you compare and apply for personal loans through trusted NBFC partners—ensuring fast approval, competitive rates, aand complete transparency.

Apply today and take a step closer to financial freedom!