Apply for loan against LIC policy online and get up to 90% of the surrender value as a loan. The surrender value of your life insurance policy from LIC or another reputed private insurer is offered as security/collateral to take a loan. The maximum tenure for LIC loan can be up to the maturity of the LIC policy.
Below are the key LIC loan details:
|Loan amount||Up to 90% of the surrender value|
|Rate of interest||Starting from 10.50% p.a.|
|Processing fee||0% to 1% of the loan amount sanctioned|
|Tenure||Minimum 6 months and maximum up to the maturity of the LIC|
|Age||Minimum 18 years|
|Prepayment charges||Rs. 0 to Rs. 1,000|
The answer to how to get loan from LIC insurance policy is given below in easy steps:
Additional Reading: How to Read CIBIL Report?
The following are the key features of the Loan Against LIC Policy:
Tip: Check Credit Score before applying for a loan
If you want LIC personal loan apply online by following the registration and login process for LIC Policy portal as mentioned below:
The payment for personal loan on LIC policy can be done within 6 months and maximum up to the maturity of the policy. Unlike other loan facilities, LIC of India loan payment is not done in EMIs, which gives you a lot of flexibility in repayment. You can make repayment through the following ways:
Additional Reading: Check CIBIL Score by Pan Card
The maximum loan limit for the LIC Policy Loan varies from lender to lender. You can get a maximum of up to 90% of the surrender value of the policy, depending on your age, income, loan amount requirement, policy value, and other eligibility parameters.
LIC India permits policyholders to avail a Personal Loan against their LIC endowment policies. Some of the plans that qualify for a Personal Loan are as given below:
Follow the link for: CIBIL Login Registration
LIC surrender value is the amount payable by the LIC to the policyholder when the policy is surrendered before the maturity of the policy. There is a lock-in period of 3 years for a LIC policy. The policy can be surrendered after completion of 3 years from the date of issue of the policy and the premiums are paid regularly.
On surrendering the policy all the benefits vested in the policy along with protection cover will cease to exist. It is not wise to surrender the policy when in need of urgent funds. The alternative would be to avail a loan against the policy. Surrender the policy if you are dissatisfied with the terms and conditions and do not genuinely intend to continue with it.
In case of regular premium policy, Guaranteed Surrender Value of LIC policy is 30% of the basic premium paid. The Company excludes the first year’s premium paid while calculating the surrender value.
In a single premium policy, the Guaranteed Surrender Value will be 90% of the single premium paid. The Company will exclude the extra premiums paid if any.
The Surrender value of vested bonuses is vested bonuses multiplied by the policy surrender value. The percentage applicable will range from 16% to 35% depending upon the policy year (the year in which the policy is surrendered).
This Special Surrender Value will depend upon the period for which the premiums have been paid and also the term of the policy at the time of surrender.
Either the Guaranteed Surrender value or the Special Surrender Value, whichever is higher will be paid by the Company at the time of surrender of the policy.
Below is the list of top 5 banks and other financial institutions that provide personal loan against life insurance:
Now get IDFC First Bank personal loan of Rs. 1 Lakh to Rs. 1 Crore at lowest interest rate starting from just 10.49% per annum and the processing fee is 3.5% of the sanctioned limit + GST.
The answer to the question can I take loan against LIC policy is yes. You can apply for the loan online as well as offline.
If you are wondering how to pay LIC loan interest, don’t worry. You can easily make the interest and EMI payment online as well as through offline medium.
The LIC loan payment can be done within 6 months and maximum up to the maturity of the policy. You can make LIC of India loan payment online via NEFT/netbanking. You cannot complete the LIC loan payment online without login, so make sure you have credentials ready before login for payment.
The LIC repayment of loan can also be done offline through cheque, demand draft, or cash depending on the mode of payment chosen by you at the time of sanctioning of the loan.
The answer to the question how much loan can I get on LIC policy is:
The maximum quantum of loan will be 90% of the surrender value of the policy provided you have paid premiums for 3 years regularly, from the date of issue of the policy.
The minimum period allowed to repay LIC Personal Loan is 6 months.
If the LIC loan interest is not paid even after 30 days from the due date, LIC will foreclose the policy and settle the loan with the proceeds.
If you are confused about how to apply loan against LIC policy, don’t worry. Here are some ways to apply for LIC loan:
In the event of the death of the policyholder before the maturity of the policy, the claim will be settled and the outstanding principal and interest towards the loan will be settled and the differential amount paid to the nominee.
In case of default and the outstanding amount in the loan account accumulating beyond the surrender value, LIC will foreclose the policy and clear the outstanding amount with the claim proceeds and any differential amount will be credited to the account of the policyholder.
If you are thinking about how much interest LIC gives, here’s the answer. Usually the LIC won't pay interest for policyholders. It will pay interest in the form of Bonus instead. In an average, LIC pay around 7% interest.