Loans against LIC Policy

LIC policy can get you loan for your needs. Many of us not aware of this facility. I have explained in my previous articles about the different kind of loans and how to apply for it. Loans against LIC policy is one of the good idea to get loans for cheaper price. It involves many restrictions because you will not be eligible to get huge loans under this scheme even if you have the policy.Also note that not all the policies are eligible for getting the loans, only the endowment policies can be submitted for the loans.

This article explores conditions involved in getting the loan against LIC policy. If you have any doubts please post it in the comments section. Please subscribe to our future articles here or post it in the facbook fans page.

lic-policy

What is Cash Value for LIC policy?

In my previous article I have explained what is surrender value?. Cash Value is also referred as the Surrender Value of the policy. Before applying for the loan you must know the exact cash value of the policy because if it is very low then there is no point in applying the loan if your need is huge amount. The maximum loan amount available under the policy is 90% of the Surrender Value of the policy (85% in case of paid up policies) including cash value of bonus.

The rate of the interest charged on the loan is 9% and the minimum period loan is given if for 6 months.

Loan on LIC

The provision of loan against a life insurance policy is basically an advance against the cash value (surrender value) of the policy. The advance is always less than the case value. Most of the insurers approve 90% of the cash value of the policy. In case a loan is provided, the policy is absolutely assigned and held by the insurance company as security for repayment of the loan.

  • You have to pay the interest specified in the loan.
  • If you failed to pay the interest on time, that will be added to the principle and calculated the interest.
  • If the total dept is more than the cash value, the insurer has the rights to terminate your policy.
  • If the policy is matured before completing the loan, insurer has the rights to deduct the loan amount from your maturity amount.

Summary

I hope this article will be useful for the people who has the policy with good surrender value and need of urgent loan. If you apply for personal loans, the interest rates will be very high. This scheme will be very helpful. Thank you for reading the article. If you have any doubts please post it in the comments section.

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Comments

  1. dinesh says

    I have 3 LIC policy approx worth rupees 16 lakh, i need 2 lakh as loan what will be the rate of interest and can i get more money as loan, please get me the complete information as early as possible. it will be very kind of you. thanks

  2. says

    can loans be obtained against new policy.suppose i take a policy for 500000 and pay 30000 lumps ump as premium,would i get a loan upto 300000 after paying just one premium under watever type of policy……be it government or privately owned……?loan is urgently required…..

  3. pushparaj says

    can loans be obtained against my 2.5 half year lic policy my total policy amt 1 lac i want loan against my policy bond this is possible in any bank then reply me

  4. shravan kumar says

    I have three policiies jeevan saral, jeevan mithra, money back amounting to a total of 11 lacs. but i have started it just now, how to avail loan after 3 years? how much loan can be taken and how much predicted interest be?

  5. suhasini says

    Is there any way I can pay lic loan interest amount online? If I dont pay within the due date, how much interest will be charged?

  6. sandip says

    i have lic policy. its 3 yrs old.i need personal lone of 2 l50000 and the policy is .120000.how much lone i take agianst my policy

  7. sandip says

    i have lic policy. its 3 yrs old.i need personal lone of 150000 and the policy is .120000.how much lone i take agianst my policy

  8. Ravindra Kawale says

    Sir, I am looking of loan for construction of my old house, which is not the owned property, it is a slum area. Myself & my brother having LIC policies having agreegate sum insured of about 8 lacs. Shall I get loan of Rs. 5 Lacs against mortgaging the said policies to LIC HFL. Kindly advise.

    • Murali says

      Loan amount sanctioned based on the amount you paid so far.
      LIC will provide you the 70% to 80% of the total amount paid so far.
      your policies should complete 3 years.
      LIC will not proivde the loan based on the suminsured.

  9. PRASAD says

    can loans be obtained against my 5 year lic policy my total policy amt 1 lac i want loan against my policy bond this is possible in any bank then reply me and how much can i get

  10. Sheetal says

    Hi,
    I am paying premiums for last 3 years for Jeevan Saral lic policy. Can you please tell me how much loan can I get on this policy and how much interest I have to pay for that?

  11. Sheetal says

    I need to mention the details. The premium amount is 30000 per anum. Policy period is 20 years. So you can get how much loan can be possible on this amount.

    • says

      Hello Sheetal,

      Not much for this premium. It depends on the current surrender value of the policy. Only agents are banks can provide you the exact amount you are eligible.

      Thanks,
      Krishna

  12. says

    Hi,
    I am paying premiums for last 3 years for Jeevan Saral lic policy. Yrly 6000 Can you please tell me how much loan can I get on this policy and how much interest I have to pay for that?

    Regards
    Somnath Bhandari

  13. Sreerup says

    Hi,

    I have Jivan shree policy from 2005, I had taken loan on my policy last year. Now I am planning to make my policy paid up. Please suggest if there is any issue with this.

    Regards
    Sreerup

  14. Anand says

    Hi,

    I have a LIC policy bond of my father and mother. They are older than 3 years. But we paid the premiuim only for years.Due to some reason we had stopped the installment. Can we able to start the those policy again and avail the loan against that policy.

    i am looking for a loan againt the LIC policy.

    Regards,
    Anand

  15. Ramakrishnan says

    sir
    I have jeevan anand policy and paying Rs.16000/anuum and crossed 6 yrs.now i want loan from lic .is it possible and how much amount i expect against this policy sir.

  16. balwant kumar says

    hello sir,
    I have taken loan on lic policy of mine can I pay this loan in small amount through internet banking.

    thanks
    balwant kumar

  17. Sudip Kr.Ghosh says

    I have tow lic policy one is running 2005 amount Rs 1780.00 in 18 years policy. 2nd is running 2008 amount Rs 2300.00 in 20 years. i have taken loan on lic and pay through internet banking – 25000.00 lone for 3years if possible pls. conferm

  18. Aditya Maiya says

    how to claim lic policy after death and the policyholder has taken loan against bond in a company and company has deducted amount from retirement benefit .

  19. Swadesh says

    Hi I have policies for which I have paid 3 yearly premiums. But the same has not completed 3 Calendar years.I have paid the 1st premium in DEC 2011
    Am I eligible to take loan

  20. arun says

    Dear Sir,

    Dear Sir i have taken 50000 thousand loan against Lic jeevan anand policy, so i am having doubt to how to repayment of my lic loan both interest and principal amount, if it is possible to pay both interst and principal amount. Please suggest better option, Thank you.

  21. Willy Luis says

    Goodday sir, ma’am.

    Willy Financial Loan Company United States of America have opened an opportunity for all customers who are in serious need of financial assistance, we offer loans at low interest rate 3% and we only offer currency like Euro, Dollars and pounds to pay all your bills and get a business Started. interested person should please contact us via email: willyluisloan@gmail.com for
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  22. rakesh jain says

    if i closed my jeevan saral policy after paying 3 years premium my monthly premium is 2ooo.rs how much amount will i get after 3 years

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