Loans

LOANS

L.I.C.Loan:

Any person holding LIC Certificates can avail of this loan by pledging the Bonds, upto 80% on the face value of the Bond and tenure of this Loan is 12 Months.

The loan amount is given on the basis of the surrender value of the LIC policy. The maximum loan amount that can be availed will be up to 90% of the surrender value. The maximum loan amount is 85% of the surrender value for a paid-up policy. This includes the cash bonus that may be applicable to the policy.

Loan against insurance policy requires the borrower to submit the insurance policy with the lender as collateral. If the borrower is unable to pay back the loan, then the lender reserves the right to hold on to the policy till the debt is cleared by the borrower.

Eligibility Criteria
  • The applicant should be a resident of India and at least 18 years old
  • The applicant must have a valid LIC (or other life insurance) policy
  • The LIC policy used for obtaining loan has guaranteed surrender value (term plans not eligible)
  • At least 3 years of LIC premium has to be paid in full
  • The policy has to be assigned completely in favour of LIC

Currently term plans provided by LIC cannot be used as collateral for this secured personal loan as they do not have a guaranteed surrender value. The following are some of the popular LIC policies that can be used as collateral for loan against LIC policy: