withdrawals are to be repaid within 36 months. A second loan could be availed as long as you are within the 3rd and before the 6th year, and only if the first one is fully repaid. Also note that once you become eligible for withdrawals, no loans would be permitted. Inactive accounts or discontinued accounts are not eligible for loan. Features The public provident fund is established by the central government. One can voluntarily open an account with any nationalized bank, selected authorized private bank or post office. The account can be opened in the name of individuals including minor. The minimum amount is ₹500 which can be deposited. The rate of interest at present is 7.1% per annum (as of April 2020). Interest received is tax free. The entire balance can be withdrawn on maturity. The maximum amount which can be deposited every year is ₹150,000 in an account at present. The interest earned on the PPF subscription is compounded annually. All the balance that accumulates over time is exempted from wealth tax. Withdrawals from PPF account There is a lock-in period of 15 years and the money can be withdrawn in full after its maturity period. However, pre-mature withdrawals can be made from the start of the seventh financial year. The maximum amount that can be withdrawn pre-maturely is equal to 50% of the amount that stood in the account at the end of 4th year preceding year or the end of immediately preceding year whichever is lower. After 15 years of maturity, the full PPF amount can be withdrawn which is tax free, including the interest amount as well. Nomination Nomination facility is available in the name of one or more persons. The shares of nominees may also be defined by the subscriber. PPF Penalty / Revival / Nomination If any contribution of minimum amount in any year is not invested, then the account will be deactivated. To activate the bearer needs to pay ₹50 as penalty for each inactive year. He/she also needs to deposit ₹500 each as each inactive year's contribution. In case death of account holder then the balance amount will be paid to his nominee or legal heir even before 15 years. Nominees or legal heirs are not eligible to continue the account of the deceased. If balance amount in the account of a deceased is higher than ₹150,000 then the nominee or