Loan against Insurance Policy
Get a Loan Against Insurance Policy of up to
₹ Crore

Your Loan against Insurance Policy with us

Check details and make payments for your loan against insurance policy with us

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Loan Against Insurance Policy

Loan of up to 90% of policy value| Funding against policies under lock-in period
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All you need to know about our loan against insurance policy
 
 
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Trusted by 3 lakh+ customers

Loan Against Insurance Policy
Loan of up to 90% of policy value| Funding against policies under lock-in period
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24-hour disbursal

Your bank account will be credited with your loan amount within 24 hours,or in some cases, on the same day of approval

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Pre-assigned loan limit

Benefit from a pre-assigned loan limit customised to match the value of your pledged funds and the credit profile.

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Draw only what you need

Enjoy the freedom to withdraw and repay funds as per your specific needs.

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Easy pre-payments

Flexible prepayment and foreclosure options let you prepay or foreclose your loan.

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Apply with minimal documentation

Only need to submit Officially Valid Document (OVD) for ID and address proof, bank account proof, and proof of insurance policy.

Features and benefits of our Loan Against Insurance Policy

Read on to know why you should opt for our loan against insurance policies

  • Loans up to ₹25 crore*

    Finance a diverse range of needs with funds up to ₹25 crore* against your endowment and ULIP policies.

  • Funding against policies under lock-in period

    We cover your immediate liquidity needs even if the insurance policy is under lock-in period.

  • Get loan while keeping your insurance coverage intact

    Secure a loan against your endowment and unit-linked insurance policy to meet your liquidity needs without surrendering your policy. This ensures your insurance coverage and investment benefits remain intact.

  • Flexi loan against endowment and ULIP policies

    Get a flexi loan against an endowment and Unit Linked Insurance Plan (ULIP). Make multiple withdrawals from your total sanctioned amount and pay interest only on the amount utilised.

  • Pay interest on completion of policy lock-in period.

    For loans against policies under a lock-in period, you can repay the principal and interest amount together after the lock-in period ends.

  • Pre-approved loan limit

    Access a minimum loan of ₹25,000 and a maximum of up to ₹25 crore. This is applicable for the maximum tenure of up to 96 months. Get loan of up to 80% on policies against surrender value.

  • Easy prepayments

    Flexible prepayment and foreclosure options allow you to prepay or foreclose your loan without additional charges.

  • Apply with minimal documents

    You only need to submit Officially Valid Document (OVD) for ID and address proof, bank account proof, and document proof of the insurance policy to apply for a loan.

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Eligibility criteria and documents required for loan against insurance policy

Anyone can apply for a loan against insurance policy online, as long as they meet the basic criteria mentioned below. Also keep a few documents handy while applying for loan against insurance policy.

Eligibility criteria

  • Age: 18 years to 90 years
  • Minimum surrender value of policy: ₹25,000
  • Employment: Salaried or self-employed
  • Must have an active Endowment and ULIP policy of either Bajaj Allianz Life, ICICI Prudential, Max Life, TATA AIA, Aviva India, or Life Insurance Corporation of India (LIC)
  • Nationality: Indian

Documents required

  • One copy of your recent photograph
  • Aadhaar card/passport/voter’s ID as address proof
  • PAN card
  • Insurance policy document
  • Bank account statement/ copy of a cheque as bank account proof
  • Any other document as may be required by Bajaj Finance Ltd.

**Please note that the list of documents mentioned here is indicative. You will be notified on the complete list of documents required by our representative while filling the application form.

Applicable fees and charges for loan against insurance policy

Types of fees

Charges applicable

Interest rate

Up to 24% p.a.



In case of lock-in policies, compounding interest will be charged

In case of lock-in free policies, simple interest will be charged

Processing fee

Up to 3% (inclusive of applicable taxes) of the loan amount or



Up to ₹10,000 (inclusive of applicable taxes)

Flexi fee

Not applicable

Prepayment charges

Full prepayment - Up to 4.72% (inclusive of applicable taxes) on the outstanding loan amount as on the date of full prepayment



Part-prepayment - Up to 4.72% (inclusive of applicable taxes) of the principal amount of loan prepaid on the date of such part-prepayment

Bounce charges

Rs. 1,200/- per bounce.

“Bounce charges” shall mean charges for (i) dishonour of any payment instrument; or (ii) non-payment of instalment (s) on their respective due dates due to dishonour of payment mandate or non-registration of the payment mandate or any other reason.

Penal charge

For LIC (ULIP & Endowment) and Non-LIC (Endowment) Policies - Delay in payment of instalment(s) shall attract penal charge of ₹8/- per day per instalment from the respective due date until the date of receipt of the full instalment(s) amount.

For Non-LIC (ULIP) Policies - Delay in payment of instalment (as per payment frequency mentioned in the Sanction Letter) shall attract penal charges as more particularly described in Annexure I from the respective due date until the date of receipt of instalment (as per payment frequency mentioned in the Sanction Letter) /principal/overdue amount. To view Annexure 1 kindly click here.

Stamp duty (as per respective state)

Payable as per state laws and deducted upfront from loan amount

Annual maintenance charges

Up to Rs. 2,949/- (inclusive of applicable taxes) if the loan tenure is above 12 months

Renewal fees

Up to Rs. 2,950/- (inclusive of applicable taxes) to be collected on renewal

Legal charges

Recovery of charges

Broken period interest/pre-monthly instalment interest

Broken period/pre-monthly instalment interest shall mean the amount of interest on loan for the number of day/s which is/are:

Scenario 1: Over and above the period of 30 days from the date of disbursement of the loan

Method of recovery of broken period interest/pre-monthly instalment interest:

Added to the first instalment amount

Scenario 2: Less than period of 30 days from the date of disbursement of the loan, interest on first instalment will be charged for actual number of days

Platform fees

Rs. 11 (Inclusive of applicable taxes) will be charged for utilising the payment gateway to make part or full payments towards the loan through digital properties.

How to apply for a Loan Against Insurance Policy

Step-by-step guide to apply for loan against insurance policy


Step 1: Click on 'Apply'.

Step 2: Enter your personal details, such as your name, PAN, DOB, etc.

Step 3: Provide your email address and verify it.

Step 4: Add policy details to help us create your loan offer.

Step 5: We will evaluate your insurance policy based on loan eligibility and generate a personalised loan offer.

Step 6: Complete the KYC verification process to generate the sanction letter.

Step 7: Register the E-mandate to set up automatic repayment of your EMIs.

Step 8: Accept the agreement and provide your consent for loan sanction and disbursement.

Step 9: Submit your insurance policy to determine the final loan amount.

Step 10: After verification, the loan amount will be credited to your bank account.

Frequently asked questions

What is loan against insurance policy?

If you need some financial help and looking for availing a loan, you can get a loan against your insurance policy. In this case, your insurance policy acts as the collateral against the loan amount.

Can we take loan against insurance policy?

The eligibility criteria for obtaining a loan against your insurance policy are more relaxed compared to other types of loans. It depends on the type of insurance policy you own and whether it is approved for a loan by the lender. Loans are available against Endowment and Unit-Linked Insurance Plans (ULIPs).

What are the processing charges levied by Bajaj Finance Ltd. on the loan against insurance policy?

A processing fee up to 3% (inclusive of applicable taxes) of the loan amount or up to ₹10,000 (inclusive of applicable taxes).

When is the interest payable on the loan against insurance policy and how is it calculated?
  • If the policy is in a lock-in period, a bullet interest payment is made upon completion of the policy’s lock-in period. A bullet repayment is a lump sum payment covering the entirety of outstanding dues under the loan at maturity.
  • If the policy is out of the lock-in period, interest is calculated and payable monthly.

For policies in the lock-in period, compound interest is charged. For policies outside the lock-in period, simple interest is charged.

How much time does it take to process a loan against insurance policy?

Processing a loan against an insurance policy takes approximately 24 hours, subject to the submission of all required documents.

Is the principal amount convertible to EMI?

No, the principal amount cannot be converted to EMIs.

Is partial withdrawal allowed during the subsistence of the loan?

Yes, partial withdrawal is allowed during the loan’s subsistence, subject to successful verification by the lender. Bajaj Finance reserves the right to deny partial withdrawal requests at its sole discretion.

Can a policyholder with multiple ULIP policies, avail loan against all policies in one go?

Yes, a policyholder with multiple ULIP policies can avail of a loan against all policies in one go, subject to the assignment of all the policies in favour of Bajaj Finance.

To whom will the policy be assigned, if one decides to get a loan against insurance policies?

The policy must be assigned in favour of Bajaj Finance Limited.

Whom should the customer contact for a service request?

You can call the customer centre at 1800-123-2557 or write to us at Laip.care@bajajfinserv.in for any service requests related to a loan against an insurance policy.

Is the loan processing done by Bajaj Finance or its partner insurance companies?

All loans are processed by Bajaj Finance Limited.

What will be the effect of foreclosure of a loan against an insurance policy?

In case the loan is availed, the policy will be assigned in favour of Bajaj Finance. There are two ways of closing the loan –

  • You can repay the total outstanding in Bajaj Finance Limited designated bank account. Post receipt of payment, loan account shall be closed, and the policy will be assigned back to you.
  • You can repay is repaying via surrendering the policy. Basis your request, the insurance company will surrender the policy and the surrender value will be transferred to Bajaj Finance Ltd., since the policy is assigned to them. Bajaj Finance will adjust s the loan amount and refund the surplus (if any) to the you and close the loan account.
Who can surrender the policies against which loans have been availed?

Policy surrender will be at the discretion of the lender only.

Who initiates the communication for premium payment details?

Any intimation regarding premium payments is sent directly to the client by the insurance company.

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Disclaimer

Bajaj Finance Limited has the sole and absolute discretion, without assigning any reason to accept or reject any application. Terms and conditions apply*.