Loan against LIC policy is another reason people prefer taking LIC policies. LIC policies not only guarantee you assured returns with government backing but also gives an additional feature of taking loan against policy which No other life insurer has this facility. I repeat taking loan on policy is only available in LIC of India no other life insurance company in India has that facility.
Want to apply for loan online? Fill out the form below
LIC Loan Details – 2020
First time applying for loan on policy? Here are all the details about the loan
|Interest Rate||8% to 11%|
|Eligibility||Endowment policies that ave completed 2 years|
|Fore closure charges||NIL|
|Minimum tenure||6 months|
In case of any emergency the policy premiums and the interest, bonus accumulated thereon can be taken as loan with not much documentation and almost instantly. LIC loan on policy can be very useful in emergency situations where you need money for something instant and for short duration.
Eligibility for LIC Policy Loan
All LIC policy holders are eligible to take loan against their policy provided they have paid minimum of 3 yearly premiums. LIC loan on policy eligibility mainly depends on the premiums you have paid.
Check your LIC Loan Eligibility
Want to know if you are eligible for taking a loan on your policy? Check your loan eligibility and the amount that can be taken as loan here.
Process to apply for loan
You can apply for loan online at LIC of India official website. The process is very simple, fast and without any hassles. The process for LIC loan online is available for both registered and unregistered users. You can apply for loan through you LIC agent or do it yourself online or by visiting a LIC branch.
Process to apply for loan at LIC branch
Steps to apply for loan
- Visit any LIC branch. Search LIC branch by code.
- Mention you policy number to check eligibility
- Fill out LIC loan form No. (download loan form)
- Submit at branch
- Loan will be sent to your bank account (as in your policy) in less than 7 days.
Process to apply for loan at LIC website
Steps to apply for LIC loan online on LIC website (https://www.licindia.in)
- Create your login account on the site. You ill need to have your policy number with you and date of birth, email id and mobile number as on your policy. If your mobile and email id are not mentioned in your policy, you will have to get that done first
- Login to your LIC account
- The tab Loan will show you the LOAN amount that can be availed by you
- Click apply for loan
- Loan will be sent to your bank account (as in your policy) in 2 days
Important things to know before taking loan on LIC policy
- The interest rates of policy loan changes as per market scenario. Do check the current interest rates before taking a loan
- If you cannot pay the loan back. The principal and the interest amount can be adjusted against your final maturity pay out or bonuses or both.
- There are no prepayment charges
- The status of your policy should be active.
LIC Loan Payment
The interest can be paid every month online at LIC website or any LIC branch. If you need to pay back the principal amount as well. You need to fill out a loan closure application. There is no prepayment charges for loan.
LIC Loan Interest
What is LIC loan against policy?
Since any life insurance policy is a long term investment commitment and due to some financial emergencies a policy holder may need some amount in between the policy term. Though he can always surrender the policy and take out the money and use it. In such case the policy holder not only misses out on the future bonus declarations but is no longer having a life cover.
LIC of India is giving out an option to the policy holder to take out money from his policy even before the policy is completed. LIC loan can be availed against the policy by the policy holder to take care of his temporary financial needs.
How much loan can be taken against a LIC policy?
Almost all LIC policies have the built in facility of getting a loan against the policy. from LIC of India. Policy holder can avail the loan facility on policies after completion of two 2 years of policy. The loan eligibility differ from plan to plan. Usually the loan can be availed for up to 80 percent of your total premiums paid and bonuses added.
Is here any interest on the loan against policies
Yes, you need to pay interest on the LIC loan taken on the policy at prevailing market rates. The interest rates keep changing from time to time but is always lesser than any other personal loan options.
How do I take Loan against LIC policy?
What is the eligibility criteria? How much is the interest rate? Do I have to return the loan? loan on. lic policy application form. how to apply. What is the procedure? Calculator? How to return? How much loan can I get against my LIC policy? Loan against LIC policy interest rates? Loan against LIC policy bond.
ULIP and Term insurance policies do not have any loan availability. People who have taken a term insurance cannot take a loan against their LIC policy from LIC of India. Same is the case with the people who have ULPIs (unit linked insurance plans, like Future Plus, Market Plus, etc.)