Loan Against LIC Policy What are the Eligibility Criteria


Indian Life Insurance Corporation (LIC) provides the facility of taking loans against their insurance policies to the policyholders. This loan can be used to fulfill individual needs such as medical emergencies, education, home renovation, and more. The interest rate on this loan is comparatively lower than other personal loans, and even with a low credit score, the loan against your LIC policy can be easily approved based on the surrender value of your policy. You can apply for this secured loan through both online and offline channels.

Loan Against LIC Policy

Loan Against LIC PolicyInformation about getting a loan against LIC policy.
Eligibility CriteriaRequirements for being eligible for a loan against LIC policy.
How to ApplyProcedures for applying offline and online for the loan.
Terms and ConditionsConditions associated with taking a loan against LIC policy.
Repayment ProgramDetails about the repayment period and options.

Eligibility Criteria for Loan Against LIC Policy

Loan Against LIC Policy

To be eligible for a loan against your LIC policy, you need to fulfill certain criteria:

  • You must possess a valid LIC policy
  • Your minimum age should be 18 years
  • The policy should have at least 3 years of premiums paid
  • The policy should have acquired a surrender value

How to Apply

For offline applications, visit your nearest LIC office with the required documents and submit the filled application form along with the original documents.

For online applications, register on the LIC e-Services portal, login, fill the application, upload the required documents, and submit the form for processing at the nearest LIC office.

Terms and Conditions

  • The policy is assigned to LIC when you take a loan against it.
  • The minimum loan repayment period is 6 months.
  • A minimum of 6 EMIs must be paid before the loan period ends.
  • You can get a loan of up to 80-90% of the surrender value.
  • The interest rate is generally 10-12% based on the profile.

Repayment Program

You are given a period of 6 months to repay the loan. In case the policy matures or if the borrower passes away within 6 months, the loan repayment is done using the policy's proceeds. The complete repayment program details are provided in advance and are available online. You can make a lump sum payment of the principal and interest, or choose to pay at intervals over the years.

The loan repayment can also be done along with the maturity claim of the policy, thus helping prevent the policy from lapsing.

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