Did you know your LIC policy is more than just life coverage? It’s a powerful financial tool that supports your future goals—whether it’s securing your family, planning for retirement, or funding your child’s education. But that’s not all! Your insurance policy can also unlock financial flexibility when you need it the most.
Need quick funds? Leverage your insurance policy and get a loan of up to 90% of its surrender value with ease! Apply now
No extra collateral, no hassle—just smooth access to the money you need.
Understanding LIC policies
Life Insurance Corporation (LIC) policies are insurance plans that offer financial security and protection to policyholders and their families. These policies provide coverage against various risks, such as death, disability, and illness, while also serving as a savings or investment tool. LIC policies come with multiple options to meet different financial goals, including life coverage, retirement planning, children's education, and wealth creation.
Types of LIC policies eligible for loans
LIC offers a wide range of policies, each designed to cater to different financial needs and goals. These include term insurance plans, whole life insurance, endowment plans, money-back policies, pension plans, and ULIPs (Unit Linked Insurance Plans). You can also explore options for a loan against insurance policy, enabling you to leverage your policy's value in times of need.
Eligibility criteria for taking loan on LIC policy
- Up to 90% of the surrender value of the policy
- The policyholder should be at least 18 years of age.
- The LIC policy should not be in a lapsed state.
- Only traditional LIC policies (not term plans) are eligible for loans.
- The loan amount depends on the policy's surrender value, typically up to 85-90% of it.
Documents required for loan against LIC policy
| Document type | Details |
| Application form | Duly filled loan application form |
| Original policy document | Original LIC policy document for verification |
| Identity proof | PAN Card, Aadhaar Card, Voter ID, etc. |
| Address proof | Utility bill, Passport, Aadhaar Card, etc. |
| Bank account proof | Bank passbook or statement for loan disbursement |
Step-by-step process to apply for a loan
Here’s the step-by-step process to apply for a loan:
- Visit LIC branch or website – Go to the nearest LIC branch or visit the official LIC website to start your loan application.
- Submit application and documents – Fill out the loan application form and submit it along with the required documents.
- Provide policy for verification – Submit the original LIC policy document for verification.
- Loan assessment – LIC evaluates the loan amount based on your policy’s surrender value.
- Loan disbursement – Once approved, the loan amount is transferred directly to your bank account.
With a straightforward process and quick approvals, getting a loan against your insurance policy is seamless. Whether you need funds for personal or business needs, your policy can help you access substantial amounts without additional collateral.
Avail a loan of up to Rs. 1000 Crores against your insurance policy. Apply now
Interest rates and repayment options
The interest rates on loans against LIC policies typically range between 9-10% per annum, but this may vary based on LIC's current guidelines. The loan can be repaid in flexible installments or as a lump sum. Policyholders need to ensure regular interest payments to avoid any lapse in the policy, as unpaid interest may be deducted from the policy's maturity value.
