Search Suggestions
- Gold Loan
- Money Transfer
- Mutual Funds

Personal Loan vs. PPF Loan – Don’t Choose Until You Read This
Financial emergencies can arise unexpectedly in everyone's life and leave the individual in urgent need of funds. The reason behind this can be anything ranging from a medical emergency to unavoidable house repair work or an unexpected purchase. All these situations are very challenging and can throw one’s finances off balance. In such a scenario, taking out a loan is undoubtedly the most viable option. It allows the person to get the financial aid he/she needs and handle that situation in an efficient manner.
Table of Content
Currently, there are several different types of loans available that one can choose from. Among the various financing options, personal loans and PPF loans are definitely the most popular choices to take care of such situations. Both of these loans have their own unique features and benefits, which make them suitable for different situations.
Are you also in the process of obtaining a loan and unsure which one of these two is right for you? Read on to understand what personal loans and PPF loans are and how they are different from each other:
An Overview
A personal loan is a type of unsecured loan that is usually obtained to arrange a large sum of money in a short period of time. The loans can be availed for a variety of reasons, such as vehicle purchase, higher education, business expansion, etc. The lending institution offers complete flexibility in terms of fund usage, and the loan amount majorly depends on your creditworthiness.
A PPF loan, on the other hand, is a financing option that allows you to take out a loan against your Public Provident Fund (commonly known as PPF). This is a government-backed voluntary saving scheme that allows individuals to invest their money and get tax-free returns. If you’re a PPF account holder, you can borrow a certain percentage of your total PPF balance before the maturity date.
Personal Loan vs. PPF Loan
Here is a detailed comparison of these two types of loans, depending on several factors:
Accessibility
Applying for a loan against your Public Provident Fund is an option only if you have an active Public Provident Fund account and have been maintaining it for at least 2 years. But personal loans, on the other hand, can be obtained by anyone with a steady source of income. If the applicant has a good credit history and the lending institution considers him/her capable of repaying the loan, the approval doesn’t take much time. In addition to this, the documentation is also less complicated for instant personal loanas compared to PPF loan.
Loan Amount
Personal loans give you a good amount of flexibility in terms of the amount you can borrow. Monthly income and credit score are two key determinants of a personal loan amount. Ranging from a few thousand to several lakhs, you can choose a loan amount as per your financial needs and repayment capacity. But PPF loans always come with a restriction for the same. You can only borrow a specific percentage of the total account balance. So, for situations where your fund requirement is higher, PPF loans can’t serve the purpose.
Rate of Interest
Given the immense popularity of this financing option, personal loans are available at highly competitive interest rates. In addition to this, most lending institutions also offer lower interest rates for borrowers with a good credit history. But PPF loans, on the other hand, have fixed interest rates (which are usually higher than personal loans). As a result, you’ll end up paying more money as loan interest if you opt for a PPF loan.
Repayment Tenure
Generally, PPF loans come with a standard tenure of 36 months (3 years), while personal loan tenures are a lot more flexible. Every lending institution offers a number of personal loan schemes with different credit tenures. Generally, the personal loan tenure ranges between 12-84 months, so you can make a choice as per your convenience. Whether you want to borrow money for a shorter period or need long-term finance, opting for a personal loan is definitely a better choice.
In order to ensure your financial well-being, it is important that you choose the right type of loan according to your financial situation and preferences. While both of these financial options come with their own set of advantages, personal loans are undoubtedly the most popular because of the convenience and flexibility they offer.
Suggested Read: PPF, Public Provident Fund – Basics, PPF Account Opening, Interest Rate, Withdrawal & Tax Benefits
PPF Interest Rate: How to Calculate Returns, PPF Calculator, Tax Benefits
At Muthoot Finance, we offer quick and hassle-free personal loans at low interest rates. You can explore several instant personal loan schemes with different tenures and pick one that makes the right fit for you. To check your eligibility and calculate the EMI amount, you can use our online PL (Personal Loan) calculator. Or, you can also visit your nearest Muthoot Finance branch for more information.
- Instant Personal Loan
- EMI Calculator
- Document Required
- Track Personal Loan
- Interest Rate
- Procedure and Eligibility
CATEGORIES
OUR SERVICES
-
Credit Score
-
Gold Loan
-
Personal Loan
-
Cibil Score
-
Vehicle Loan
-
Small Business Loan
-
Money Transfer
-
Insurance
-
Mutual Funds
-
SME Loan
-
Corporate Loan
-
NCD
-
PAN Card
-
NPS
-
Custom Offers
-
Digital & Cashless
-
Milligram Rewards
-
Bank Mapping
-
Housing Finance
-
#Big Business Loan
-
#Gold Loan Mela
-
#Kholiye Khushiyon Ki Tijori
-
#Gold Loan At Home
-
#Sunherisoch
RECENT POSTS

What Is a Grace Period in Health Insurance? Meaning & How It Works
Know More
Life Insurance Vs Health Insurance: What’s the Real Difference?
Know More
Urgent Loans for CIBIL Defaulters in 2025: What You Need to Know
Know More
Loan Restructuring: Meaning, Process, and Its Impact on Gold and Personal Loans
Know More
1 Pavan Gold in Grams: Meaning and How It Is Calculated
Know More
NACH vs. ECS Explained: Full Forms, How They Work, and Their Key Differences
Know More
MCLR Rate vs. Repo Rate Explained: Which Is Better for a Home Loan?
Know More
Effective Annual Rate (EAR) vs. Nominal Rate: Meaning and Key Differences
Know More
Calculate Compound Interest in Seconds (2025)
Know More
Annualized Return Formula Every Investor Needs To Know
Know MoreFIN SHORTS

Top 5 Reasons to Monitor Gold Rate Daily
Know More
4 Impact of Repo Rate Cut on Personal Loan Interest Rates
Know More
Top 5 Best Performing Mutual Funds in 2025
Know More
5 Factors that affect gold loan processing time
Know More
Relation Between Personal Loan and Your CIBIL Score
Know More
Step-by-Step Way to Get Your First CIBIL Score
Know More
What Does A Revolving Personal Loan Mean?
Know More
When does CIBIL Score Be an Update Date Every Month?
Know More
Which Industries Qualify For SME Loan Schemes
Know More
Do Gold Loan Offer Any Tax Exemption?
Know More
After Paying All Debts How Long Does Cibil Take To Update The Score?
Know More
What Is The Reappraisal of A Gold Loan?
Know More- South +91 99469 01212
- North 1800 313 1212