When you need quick financial help, choosing the right loan is crucial. Two popular options are a Personal Loan and a Loan against PPF (Public Provident Fund). Both help you access funds, but they differ in terms of interest rates, eligibility, and flexibility.
At Vizzve Finance, we help you understand both options so you can make an informed decision based on your goals and financial situation.
What Is a Personal Loan?
A Personal Loan is an unsecured loan — meaning you don’t need to pledge any collateral. You can use it for any purpose, such as:
Medical emergencies
Home repairs or travel
Education or wedding expenses
Vizzve Finance offers instant personal and short-tenure micro loans with minimal documentation and fast disbursal, making it perfect for urgent financial needs.
What Is a Loan Against PPF?
A Loan against PPF lets you borrow money from your own PPF account balance. It’s a secured loan, as your PPF account acts as collateral. However, you can avail this facility only between the 3rd and 6th year after opening the PPF account.
The loan amount is limited to 25% of your balance at the end of the second year preceding the loan year.
Key Differences Between Personal Loan and Loan Against PPF
| Feature | Personal Loan | Loan Against PPF |
|---|---|---|
| Collateral Required | No | Yes (PPF balance) |
| Interest Rate | Higher (10–18% p.a.) | Lower (1–2% above PPF rate) |
| Loan Amount | Based on income & credit score | Up to 25% of PPF balance |
| Eligibility | Salaried or self-employed | Must have an active PPF for 3+ years |
| Tenure | Flexible (up to 5 years) | Max 36 months |
| Processing Time | Instant with digital lenders like Vizzve Finance | Takes time, manual process |
| Usage | Any purpose | Limited to personal needs |
When to Choose a Personal Loan
You need funds immediately.
Your PPF account is less than 3 years old.
You require a larger amount than what your PPF allows.
You prefer digital application and instant approval through platforms like Vizzve Finance.
Personal loans are best for those who want speed, flexibility, and convenience.
When to Choose a Loan Against PPF
You want a low-interest loan.
You have no urgent need for immediate disbursal.
You prefer using your savings instead of external borrowing.
However, this option has restrictions on loan amount and tenure, making it less flexible compared to a personal loan.
Vizzve Finance Recommendation
If your financial need is urgent or short-term, a personal or micro loan from Vizzve Finance is the smarter choice.
It offers:
Instant approval & same-day disbursal
No collateral required
Flexible repayment options
Transparent terms & competitive rates
For borrowers seeking quick liquidity without waiting for bank approvals, Vizzve Finance personal loans are both convenient and reliable.
Final Thoughts
Both personal loans and loans against PPF have their merits. While a PPF loan is cheaper, it’s limited and slower. A personal loan from Vizzve Finance, on the other hand, provides instant access to funds with full flexibility and ease — ideal for today’s fast-paced needs.
FAQs
Q1: Can I take both a personal loan and a loan against PPF at the same time?
Yes, as long as you meet the eligibility criteria for both.
Q2: Which is better for emergencies?
A personal loan from Vizzve Finance, since funds are disbursed within hours.
Q3: Does a loan against PPF affect my PPF returns?
No, your existing balance continues to earn interest, but repayment must be made within 36 months.
Q4: What are the documents required for a personal loan with Vizzve Finance?
Just basic KYC documents like Aadhaar, PAN, and bank details — no heavy paperwork.
Published on : 4th November
Published by : SMITA
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