New Delhi, March 20 -- While the Public Provident Fund (PPF) has lost some of its sheen over the years as interest rates have slipped gradually - 7.1% at present - several investors still prefer it given the tax benefits it offers, the safety of government backing and stability as a debt investment.

Although the PPF has a 15-year maturity, there are rules and conditions for the withdrawal of funds from the account before maturity.

To be eligible for a loan against PPF, you need to wait for the completion of one full financial year from the end of the financial year in which the account was opened. Effectively, you can take a loan against PPF from the beginning of third financial year.

The limit for a loan is 25% of the balance at the e...