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How to Write a letter to the BM, LIC for a loan against your policy

Dear Sir/Madam,

I am writing this letter to request a loan against my LIC policy. My policy number is _____________ and I have been a policyholder with LIC for _____________ years.

I am currently in need of financial assistance due to some unexpected expenses that have come up. I believe that availing a loan against my LIC policy will be the best option for me as the interest rates are comparatively lower and the repayment options are flexible.

I would like to request you to kindly provide me with the necessary details regarding the loan process, eligibility criteria, and the amount that can be sanctioned against my policy. I would also like to know about the interest rates and the repayment options that are available.

I assure you that I will repay the loan amount in a timely manner as per the agreed terms and conditions. I have attached all the necessary documents required for processing the loan application.

I request you to kindly consider my request and provide me with the loan against my LIC policy at the earliest possible. I am looking forward to your positive response.

Thank you for your time and consideration.

Yours sincerely,

[Your Name]

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Tata Capital > Blog > Loan on Securities > Loan Against LIC Policy: Interest Rate, Eligibility and How to Apply

Loan against lic policy: interest rate, eligibility and how to apply.

Life Insurance Corporation (LIC) policies safeguard you and your loved ones financially during unforeseeable circumstances. But, did you know that LIC policies can also help you get access to loans when required?

A loan against LIC policy is a type of secured loan that facilitates the option to avail of a loan by pledging the policy to the lender. This provision ensures that you do not need to liquidate your hard-earned assets such as property or automobiles to the lender, so you can retain their ownership. However, before you apply for a loan against your LIC policy, understanding how it works is essential.

To help you make an informed financial decision, this article details the nuances and workings of a loan against LIC policy and how it can help you get the finances you need in times of emergencies.

What is a loan against LIC policies?

LIC policyholders can avail of loans against LIC policy after the policy acquires a surrender value. The loan can be taken against this surrender value of the policy. The surrender value is the amount of money policyholders will receive if they decide to discontinue the policy before maturity.

The key features of loans against LIC policy are:

1 The interest rate on a loan on LIC policy depends on the prevailing rates linked to government bond yields and the applicant's credit profile.

2. Loans against LIC policy are only available to LIC endowment policyholders.

3. The loan amount sanctioned is an advance against the future surrender value of the LIC endowment policy.

4. The maximum loan amount is usually up to 90% of the surrender value for policies in force. For paid-up policies, the maximum is 85% of the surrender value.

5. The LIC insurance policy is held as collateral by LIC against the loan. LIC can withhold or terminate the policy if the applicant defaults on loan repayments.

6. Not all LIC policies have a loan facility. Policyholders must choose plans that specifically offer the loan feature.

7. If an outstanding loan with interest exceeds the surrender value, LIC has the right to terminate the insurance policy.

8. If the policy matures before full loan repayment, LIC can deduct the outstanding loan amount from the policy proceeds before disbursing the balance to the policyholder.

Eligibility criteria for LIC India loan against the policy

Here are the eligibility criteria for availing a loan against LIC policy:

1. The applicant must be a citizen of India.

2. The applicant should be at least 18 years old.

3. The policy must have a guaranteed surrender value.

4. The applicant must have a valid LIC policy.

5. The applicant should have paid at least 3 years' premium in full for the LIC policy to avail the loan facility.

Here are some of the eligible LIC policy plans that can be used as collateral for securing a loan against LIC policy:

1. Jeevan Pragati

2. Jeevan Labh

3. Single-Premium Endowment Plan

4. New Endowment Plan

5. New Jeevan Anand

6. Jeevan Rakshak

7. Limited Premium Endowment Plan

8. Jeevan Lakshya

The application process for availing of a loan against LIC policies

The process is subject to changes by LIC. Here are the key steps to avail a loan against an LIC policy:

1. Offline method

To avail of a loan against LIC policy, offline, follow these steps:

Step 1: Visit the nearest LIC branch office and obtain the loan application form.

Step 2: Fill in the application with your policy details and required information. Attach KYC documents like identity proof and address proof.

Step 3: Submit the duly filled application at the branch along with the original policy bond.

Step 4: The LIC office will verify your policy details, premium payment status and surrender value to determine your loan eligibility.

If approved, LIC will sanction the loan and disburse the amount as per the product terms. The original policy will be retained by LIC until full loan repayment.

2. Online method

To avail of a loan on LIC policy online, follow these steps:

Step 1: Register for LIC's e-services and login to your account.

Step 2: Check your policy eligibility for a loan and view applicable terms and conditions online.

Step 3: Fill out the application form online and submit it along with scanned copies of KYC documents.

Step 4: You may need to send original physical documents to the nearest LIC branch for verification.

Once verified and approved, the amount is disbursed into your account. Policy documents may be required to be deposited in physical form at the branch.

Terms and conditions to avail of a loan against LIC policies

The terms and conditions are subject to change by LIC. Below are some terms and conditions applicable for loans against LIC policies:

1. The minimum tenure of the loan is 6 months. Shorter tenures are not permitted.

2. Prepayment of the loan is allowed only after paying at least 6 EMIs.

3. In case of the unfortunate demise of the policyholder before loan maturity, interest will be charged only until the date of the demise.

4. If the policy matures during the loan tenure, the maturity claim proceeds can be utilised by LIC to first recover the outstanding loan with interest.

5. Only LIC policyholders with eligible endowment, moneyback and whole-life plans can avail of loans after acquiring the stipulated surrender value.

6. The policyholder needs to pay interest regularly as per the schedule to avoid loan foreclosure.

7. LIC reserves the right to terminate the policy if the loan with interest exceeds the surrender value.

Discover Tata Capital’s loans against securities

Loans against LIC policies allow policyholders to meet liquidity needs seamlessly. However, one must repay interest and principal on time to avoid policy termination or loan ballooning beyond surrender value.

At the same time, it is essential to look for the right lender to avail of a loan against securities . At Tata Capital, we offer competitive loans against securities interest rates , along with a high loan amount and minimal documents required for a loan against securities . To get an estimate of your potential EMIs, head over to our loan against securities EMI calculator. Apply for a loan against securities with Tata Capital today!

Visit the Tata Capital website or download the Tata Capital App for more information!

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How to take a loan against your LIC policy (Simple Guide)

Are you looking to take a loan against your LIC policy? This article will guide you on how you can do that in simple steps. There are a lot of times where you wish you could take a loan against your existing LIC policy, be it to pay for education expenses, unforeseen medical expenses, or anything else.

Some LIC policies offer their policyholders the flexibility to take a loan against their LIC policy, this could be a massive boon during challenging times for policyholders.

Further, it is also important to know if your LIC policy does offer you this benefit, in case the need arises.

This article will be touching base on the following important topics:

• LIC policies that offer loans

The process to apply for a loan against LIC policy

Required documents, eligibility for availing of a loan, benefits of availing a loan against your lic policy, lic policies that offer loans against a policy.

LIC offers quite a few policies that provide a loan facility. If you have one of the below-mentioned policies, you can avail for a loan by keeping your policy value as collateral. Let us find out which policies are eligible for this benefit:

You can avail of a loan against your policy if you have any of the above policies. That being said, loans are available after the policyholder has completed 1-3 premium paying years.

You can apply for a loan in 2 ways, offline and online. Let us lay down both loan application processes for you.

Online loan application

Step 1: register or log in through lic e-services portal.

If you have not registered on LIC e-services , you can view our LIC registration and LIC login guide. They will show you how you can easily register and log in to your LIC e-services account.

Step 2: Check if your policy is eligible to receive a loan

Step 3: check the interest rate of the loan, step 4: check the available loan amount, step 5: apply for the loan, offline loan application.

You can also visit your nearest LIC branch and apply for a loan. Upon visiting, you can request the office to hand over a loan application form. Kindly fill in the form and attach your KYC details. Once done, hand over the form to the officer. He will get back to you at your registered phone number.

The following documents are required on your part if you wish to apply for a loan:

• Original policy bond
• Aadhar card
• Bank account statement
• Driver’s license
• Duly filled loan application form

The following are the eligibility criteria for availing of a loan with LIC

• The policyholder must be an Indian.
• The policyholder must be over 18 years of age.
• The policyholder must have a running LIC policy.
• The policyholder must have paid policy premium for 1-3 years (certain policies provide a loan if the policyholder has paid the first year’s premium, certain policies require that the policyholder has paid at least 3 years premium)

No credit score: You will not require a credit score to avail a LIC loan. The loan value will simply depend on your policy surrender value. The higher the surrender value, the higher the loan you can avail of.

Comparatively low-interest rates: As LIC is a government organization and majorly exists for the welfare of Indians, the interest rates charged by LIC are comparatively lower compared to private and public sector banks. LIC usually charges a 9%-11% interest rate on their loans.

Fast and easy processing: The loan processing is generally done very quickly as LIC already has all the details that they need with them. Online and offline loan processing will be done swiftly.

Flexible loan repayment: You can repay your loans via flexible bite-sized EMIs.

Loan on 90% of surrender value: You can apply for a loan up to 90% of your policy’s surrender value.

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Taking a Loan On LIC Policy Online: Procedure and Benefits

• Updated on :
• August 26, 2023

In times of financial need, exploring all available options for obtaining a loan is crucial. One lesser-known avenue is leveraging your existing LIC insurance policy to secure a loan. A loan against LIC policy allows policyholders to access funds quickly and conveniently.

We are here to  guide you through the process of taking a loan against an LIC policy online, covering eligibility requirements, the application process, required documents, loan amount and interest rates, as well as the benefits associated with this borrowing option.

Eligibility Requirements for a Loan on LIC Policy

The eligibility requirements for a loan on an LIC policy determine who can qualify to avail of this borrowing option. These requirements may vary slightly depending on the specific policies and terms set by different financial institutions. However, the following are some common criteria typically associated with eligibility for a taking a loan on an LIC policy:

Possession of an LIC policy

To be eligible, you must hold a life insurance policy with a surrender value. The surrender value refers to the amount that the insurance company will pay you if you decide to terminate or surrender the policy before its maturity date. Policies like term insurance or pure risk cover may not be eligible for such loans, as they do not accumulate a surrender value.

Minimum policy tenure

The policy should have been in force for a specific period, usually three years or more. Financial institutions require a minimum policy tenure to ensure the policyholder has made sufficient premium payments and that the policy has acquired a substantial surrender value.

Policyholder as assignee or owner

Generally, the policyholder should be the assignee or owner of the policy to qualify for a loan against it. This means that you, as the policyholder, should be the person who has the authority to assign the policy’s benefits or make decisions related to it. In some cases, if the policy is assigned to someone else, they may be required to give consent or be involved in the loan process.

Lender-Specific Requirements

While the aforementioned eligibility requirements are typical of most lenders, there may be additional criteria set by individual financial institutions. These additional criteria might include factors such as the policy’s minimum surrender value, the policyholder’s age, creditworthiness, and other specific terms determined by the lender

Documents Required:

When applying for a loan on your LIC policy online, you will probably need to provide the following documents:

• Policy documents : Submit a copy of your life insurance policy.
• KYC (Know Your Customer) documents : This includes your identity proof (such as Aadhaar card, passport, or driver’s license), address proof (utility bills, rental agreement, or bank statement), and recent passport-sized photographs.
• Loan application form : Fill out the online form provided by the financial institution.

How to Apply for a Loan Against LIC Policy?

Taking a loan on your LIC policy online is a relatively simple process. Follow these steps to initiate the application:

• Visit the official website of your insurance company or a trusted financial institution that offers such loans.
• Navigate to the loan on an LIC policy section and explore the terms and conditions, interest rates, and loan features.
• Fill out the online application form with accurate details, such as policy number, policyholder information, loan amount required, and preferred loan tenure.
• Submit the application along with the required documents, which we will discuss in the next section.
• Once submitted, the financial institution will review your application and assess the policy’s surrender value to determine the loan amount you are eligible for.
• If approved, the loan amount will be disbursed directly to your bank account or as per the agreed-upon terms.

Lenders Offering Loans Against LIC Policy

• LIC Housing Finance is a subsidiary of Life Insurance Corporation of India (LIC). It offers loans against LIC policies at competitive interest rates. The loan amount is up to 90% of the surrender value of the policy and tenure of the loan is up to 15 years.
• IDBI Bank offers loans against LIC policies to its customers. The loan amount is up to 85% of the surrender value of the policy. The tenure of the loan is up to 10 years.
• SBI Life is a joint venture between Life Insurance Corporation of India (LIC) and State Bank of India (SBI). It offers loans against LIC policies to its customers. The loan amount is up to 80% of the surrender value of the policy. The tenure of the loan is up to 15 years.
• HDFC Bank offers loans against LIC policies to its customers. The loan amount is up to 85% of the surrender value of the policy. The tenure of the loan is up to 15 years.
• Axis Bank offers loans against LIC policies to its customers. The loan amount is up to 80% of the surrender value of the policy. The tenure of the loan is up to 12 years.
• Kotak Mahindra offers loans against LIC policies to its customers. The loan amount is up to 85% of the surrender value of the policy. The tenure of the loan is up to 15 years.

Note that some lenders classify life insurance policy as a security, which is why loan against LIC policy may come under the category “loans against security.” Make sure you have all the information you require before taking a loan against your LIC policy.

Loan Amount and Interest Rates

The loan amount you can avail against your insurance policy depends on various factors, such as the policy’s surrender value and the terms set by the financial institution. Generally, you can borrow a percentage of the policy’s surrender value, typically ranging from 80% to 90%. Interest rates for such loans are often lower compared to traditional personal loans , as the policy acts as collateral. However, it’s important to compare rates among different lenders to ensure you secure the most favorable terms.

Benefits of Taking a Personal Loan Against LIC Policy

Taking a loan on your insurance policy online offers several advantages:

• Quick access to funds : By opting for this type of loan, you can receive the required funds swiftly, without a lengthy approval process.
• Lower interest rate s: Since the policy serves as collateral, interest rates are generally more affordable compared to other unsecured loans.
• No impact on policy benefits : Taking a loan on an LIC policy does not affect your existing policy benefits or coverage. Your beneficiaries will still receive the sum assured in case of your demise.
• Flexible repayment options : Financial institutions often provide flexible repayment tenure options, allowing you to choose a plan that aligns with your financial capabilities.

Taking a loan on your LIC policy online can be a viable solution during financial emergencies or for meeting specific financial goals. By following the steps outlined in this blog, you can explore this borrowing option with ease. Remember to carefully evaluate the terms, interest rates, and repayment options provided by different financial institutions to secure the best deal for your needs. Utilizing your insurance policy to access funds can provide a convenient and cost-effective solution to meet your financial requirements.

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Finnable is a personal loan app developed by Finnable Technologies Private Limited, which is a subsidiary of Finnable Credit Private Limited, a RBI licensed NBFC.

Example of Personal Loan for Salaried Professionals ✓ Loan Amount from ₹50,000 to ₹10,00,000 ✓ Repayment period (loan tenor) options vary from 6 to 60 months ✓ Annual Interest Rate (APR) is 16% to 26% (on a reducing balance basis) + processing fees of 3 to 4% on the principal loan amount ✓ For Example – a loan of ₹1,00,000 with an APR of 16% (on a reducing balance basis), repayment tenure of 12 months, processing fee of 3%. The processing fee will be ₹3,000 + ₹540 GST with monthly EMI will be ₹9,394. The total loan amount will be ₹1,03,540. Total interest payable over 12 months will be ₹9,191. Total loan repayment amount is ₹103540 + ₹9191 = ₹1,12,731 *These numbers are for representation only and the final interest rate or processing fee may vary from one borrower to another depending on his/her credit assessment. ✓ Loan Prepayment Charges: 3 to 6% charge + 18% GST on the remaining principal amount (allowed after 6 EMI payments) Why is Finnable the best personal loan app? Instant Loans within 48 hours: Gone are the days when you had to wait weeks & months to get a loan approved. Completely Digital/Paperless: Finnable instant loan app offers a complete digital service to help save time as well as paper!

Security & Privacy Policy Finnable instant loan app ensures the safety of its customers via standard security. In simple terms, we do not share personal information with third-party apps.

Contact Us: Drop us an email: [email protected] Address: IndiQube Lakeside, 4th Floor Municipal No. 80/2 Wing A, Bellandur Village Varthur, Hobli, Bengaluru, Karnataka 560103

Responsible Lending Finnable has partnered with RBI authorised & regulated NBFCs/Financial Institutions. Our policies and services are fully regulated and legally compliant.

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Terms and conditions

Finnable is one of the fastest growing financial technology (Fintech) start-up with an NBFC license from RBI providing hassle free loans. Our mission is to make Personal loans available in less than 24 hours

Example of Personal Loan for Salaried Professionals ✓ Loan Amount from ₹50,000 to ₹10,00,000 ✓ Repayment period (loan tenor) options vary from 6 to 60 months ✓ Annual Interest Rate (APR) is 16% to 26% (on a reducing balance basis) + processing fees of 3 to 4% on the principal loan amount ✓ For Example – a loan of ₹1,00,000 with an APR of 16% (on a reducing balance basis), repayment tenure of 12 months, processing fee of 3%. The processing fee will be ₹3,000 + ₹540 GST with monthly EMI will be ₹9,394. The total loan amount will be ₹1,03,540. Total interest payable over 12 months will be ₹9,191. Total loan repayment amount is ₹103540 + ₹9191 = ₹1,12,731 *These numbers are for representation only and the final interest rate or processing fee may vary from one borrower to another depending on his/her credit assessment. ✓ Loan Prepayment Charges: 3 to 6% charge + 18% GST on the remaining principal amount (allowed after 6 EMI payments) Why is Finnable the best personal loan app? Instant Loans within 48 hours: Gone are the days when you had to wait weeks & months to get a loan approved. Completely Digital/Paperless: Finnable instant loan app offers a complete digital service to help save time as well as paper! Why is Finnable the best personal loan app? Instant Loans within 48 hours: Gone are the days when you had to wait weeks & months to get a loan approved. Completely Digital/Paperless: Finnable instant loan app offers a complete digital service to help save time as well as paper! CIBIL Score Not Required for Taking a Loan: Unlike other personal loan apps online, you can take a loan even without an existing CIBIL Score No Hidden Charges: A key feature that makes Finnable one of the best loan apps available is transparency. There are no hidden charges whatsoever, making the entire process a smooth one. Finnable instant loan app offers a wide range of EMI plans. You can also use our personal loan EMI calculator to help you choose the perfect plan. Loan Eligibility Criteria for Salaried Individuals (No Blue-Collar Employees) •The net in-hand salary of the individual has to be ₹25k and above in metros or ₹15k and above in tier 2 & other cities •He/she should have worked for more than six months •First-time borrowers need to have a Finnable score of 650 •The individual should have valid Aadhaar, Pan & Address proof •Finnable Loan is currently available in 23 cities How to Apply for Instant Personal Loans Online? • Register with OTP • Ensure that you have the documents listed on the Web/App • Provide details of amount required, net monthly salary & any other EMIs • Do KYC & profile setup • Validate address with pin code verification • Select amount & tenure • Provide bank details

APR Charges The APR (Annual Percentage Rate) charges differ from person to person as it considers the different products availed and the risk profile of the customer. However, it generally ranges between 16%-26%.

Contact Us: Drop us an email: [email protected] Address: IndiQube Lakeside, 4th Floor Municipal No. 80/2 Wing A, Bellandur Village Varthur, Hobli, Bengaluru, Karnataka 560103 Responsible Lending Finnable has partnered with RBI authorised & regulated NBFCs/Financial Institutions. Our policies and services are fully regulated and legally compliant.

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How to get a Loan against LIC policy?

The Life Insurance Corporation of India (LIC) is one of the leading life insurance companies in the insurance market. The company was formed in the year 1956, making it the oldest life insurance company in India. Being the oldest company, LIC has a huge customer base and a large market share.

LIC India offers comprehensive insurance plans for its customers. It has a range of policies for the varying needs of its customer base. You can find detailed reviews and browse some of LIC’s best insurance plans in India here.

Table of Contents

• What is LIC loan on the policy?
• Features of LIC loan

Which plans offer LIC loan?

Lic loans under endowment assurance plans, lic loans under whole life plans, lic loans under money back plans, pros and cons of loan on lic policy, who can apply for lic loan, documents required for lic loans.

• Important things to remember about LIC loans

How to get a loan against LIC policy?

• Benefits of LIC loan vis-à-vis other loans

LIC offers a range of life insurance plans for its customers. You can find term plans, endowment plans, money back plans, child plans, unit-linked plans, pension plans and even health insurance plans in LIC’s kitty. These plans provide unmatched coverage benefits at affordable premium rates.

Moreover, many life insurance plans offered by LIC also offers policy loans. Do you know about the loan against LIC policies?

What is a Loan against LIC policy?

Under traditional savings oriented life insurance plans you have the option of availing a loan against LIC policy. This LIC loan is available against the surrender value of the plan. The loan is like a personal loan which you can use for any personal or commercial financial needs that you have.

Features of LIC loan:

Availing a loan against LIC policy has various important aspects which you should know. These aspects include the following-

• LIC loan is available after the plan completes a specified tenure. This tenure can be one to three years depending on the mode of premium payment. Moreover, the full premiums should be paid during this tenure
• The loan is calculated on the surrender value of the policy. The maximum loan which you can avail depends on the terms and conditions prescribed by LIC from time to time
• Interest would be payable on the amount of loan that you avail. The LIC policy loan interest rate is not fixed. LIC interest rate on the policy is fixed by LIC from time to time
• You have to repay the loan within the duration of the policy. If the loan is not repaid and the policy matures, the outstanding loan amount would be deducted from the maturity benefit. Similarly, in the case of death, the death benefit would be paid after deducting the loan amount

As stated earlier, traditional savings plans offer LIC loan. These plans can be endowment plan, money back plans or child plans. Here is a list of plans which offer a loan on LIC policy and the period after which you can avail the LIC loan –

Endowment plans offer you the option of raising a secured financial corpus. If you want to browse more endowment plans, you can click here.

Money back policy is a traditional policy gives you life protection along with savings, this plan provides you periodic payments during the policy tenure. Click the link below to know more.

Though LIC policies offer loans, there are both advantages and disadvantages of availing such loans. Let’s understand what these advantages and disadvantages are –

Advantages of LIC loan

• The loan process is very easy and convenient. You can avail LIC loan online through some clicks of your mouse
• The loan is a multipurpose loan which can be used for any financial need that you have
• Since LIC policies can be taken for longer durations, you get a longer repayment period to pay off the loan affordably
• The LIC loan interest rate is low compared to other personal loans available in the market and ranges from 9-11%
• There is no processing fee involved when you apply for LIC loans
• You can pay the loan as per your convenience. There is no EMI repayment option. The loan can be paid in instalments at any time during the policy period.

Disadvantages of LIC Loan

• If you fail to repay your loan, the policy would be terminated by the life insurance company . As such, you would lose the coverage benefits under the plan
• Since the loan is offered against the surrender value of your policy, the loan amount would be limited. It might not prove sufficient to cover your financial requirements
• If you have availed a loan on LIC policy, the same policy cannot be used as collateral for availing other loans
• The maturity and death benefit is greatly reduced if you do not repay the loan and the outstanding amount is deducted from them. Such low values hamper wealth creation

You should, therefore, understand the pros and cons of LIC loans before availing them.

You can apply for LIC loans if you meet the following eligibility criteria –

• You are aged 18 years and above
• You are the policyholder and own a LIC policy
• The policy that you own allows loan facilities
• The policy has acquired a surrender value against which you can get the loan

You would have to submit the following documents to avail LIC loans –

• Your policy bond in original
• An application for availing a loan on LIC policy
• An assignment deed through which you assign the loan in the name of LIC
• Your identity proof
• Your address proof
• Your income proof

4 Important things to remember about LIC loans

Here are some important things regarding a loan on LIC policy that you should keep in mind –

• The maximum amount of loan which is available is limited to 90% of the policy’s surrender value
• If the policy is in a paid-up state where premiums are not being paid any more, the maximum loan that you can avail would be limited to up to 85% of the surrender value
• LIC loan interest would have to be paid half-yearly
• The minimum loan tenure is six months. Even if you repay the loan within six months, interest for six months would be charged by LIC

You can apply for LIC loan in the following two ways –

• Offline Process: By approaching the nearest branch of LIC and filling out a loan application form. You would then have to submit the form with other loan-related documents and request for LIC loan
• Online Process: You can apply for LIC loan online if you are a registered user and have registered for premium services. The process for an online loan application is as follows –
• Visit the home page of LIC’s website and choose ‘Online Loan’
• You would be taken to a new page wherein you can request online LIC loan by clicking ‘Through customer portal’
• Provide your user ID, password and date of birth in DD/MM/YYYY format to proceed
• Once you log into your LIC account, choose the policy on which you want LIC loan
• Make a loan request and the request would be processed

Loan against LIC policy offers the policyholders an assurance of help during emergencies. This provides further benefits apart from traditional policy coverage. Get these advantages by purchasing life insurance plans for yourself and your loved ones from LIC below.

If you have not registered for premium online services, here are the steps how you can do so –

• Log into your online LIC account using your user ID and password
• Fill up the registration form for premium services. Your date of birth, mobile number and email ID would be auto-filled. You would have to enter your PAN Card number or passport details
• Then you can see your LIC policies
• Choose the policies on which you want to activate premium services
• After the form is filled, save the form and print out a copy
• Sign the form
• Scan the form along with any of your KYC documents in the format of .bmg, .jpeg, .tiff, .bmp, .gif, .png image
• Upload the image of the registration form and the scanned copy of your KYC document and PAN card or passport
• Click ‘Submit’
• You would then get an acknowledgement email as well as an SMS stating that your request has been accepted
• The company would verify the form and your uploaded documents and send an acknowledgement stating the activation of premium services.

Once you are registered for premium services you can apply for LIC loans. Moreover, besides applying for LIC loan, you can also pay the loan online and check LIC loan status online on your LIC account.

Top #6 Benefits of LIC loan vis-à-vis other loans:

Loan against LIC policy has various benefits over other types of loans. These benefits include the following:

• No processing fee
• No hidden charges
• Easy application process
• Longer repayment periods
• Low-interest rates
• No requirement of your credit score

Loan against LIC is a good way to avail funds from your life insurance plans if you face a financial crunch. You would get the loan easily and the repayment process is also flexible. With low-interest rates, LIC loans are a good option which does not tax your finances.

Taking these factors into consideration, LIC policies can be an attractive insurance option. You can compare them with ease by clicking on this link.

LIC insurance plans offer this extra advantage of availing a loan against LIC policy for the insurance holders. Therefore, getting a life insurance plan from LIC can offer a secure future along with the convenience of borrowing a loan.

Turtlemint can help you choose the best LIC policy according to your needs and eligibility. Check the best policy for your profile and buy it today to protect yourself and your family.

FAQ’s:

• What is the maximum loan which can be taken?

You can avail a maximum loan of up to 90% of the policy’s surrender value. This limit reduces to 85% of your policy is paid-up.

2. What would happen if the loan is not repaid?

If the loan is not repaid, the amount is deducted from the maturity or death benefit when they are paid. However, if the loan is not repaid and the outstanding loan plus the interest amount exceed the surrender value, LIC would foreclose the policy.

3. What happens when the policy is foreclosed?

If your loan liability exceeds the surrender value, LIC would send a notice to you asking for repayment of a part of the loan. If you pay the loan partially, the outstanding liability reduces and the policy continues. However, if you are unable to make any payment towards the loan, LIC would foreclose the coverage. Foreclosure means termination of the plan. The coverage benefit would stop and you would get the remaining surrender value after the outstanding loan is deducted from it.

4. Can loan interest rates change?

Yes, the LIC interest rate on policy might change any time as per the discretion of the company.

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Policy Cancellation & Refund

Policy cancellation and refund of the premium shall be as per the terms & conditions of the policy. The refunds are processed by the Insurance Company directly. You are requested to contact the toll free number of your Insurance Company or refer the respective section of your Policy terms and conditions. You can also call us at our toll free number 1800-266-0101 or write a mail to us at [email protected] . We shall be available to guide/assist you.

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How To Get Loan Against Your LIC Policy?

Curated By : Namit Singh Sengar

Last Updated: April 01, 2024, 17:21 IST

New Delhi, India

Make timely repayments of the loan amount along with the applicable interest as per the terms and conditions specified by LIC.

Ensure that your LIC policy is eligible for a loan.

You can get a loan against the surrender value of your LIC policy, which is essentially a loan using your life insurance policy as collateral. Obtaining a loan against your LIC policy can provide a convenient financial solution in times of need. This process allows policyholders to leverage the value of their life insurance policies to secure loans for various purposes.

However, navigating the loan process requires understanding the eligibility criteria, documentation requirements, and repayment obligations. In this guide, we’ll explore the essential steps involved in obtaining a loan on your LIC policy, empowering you with the knowledge to make informed financial decisions.

It’s crucial to thoroughly understand the terms and conditions associated with taking a loan against your LIC policy, including the interest rates, repayment schedule, and potential impact on the policy’s benefits. If you have any doubts or questions, it’s advisable to consult with LIC officials or financial advisors for guidance.

Loan against LIC policy: Here’s how to get one;

• Policy Eligibility: Ensure that your LIC policy is eligible for a loan. Not all policies offered by LIC may allow loans, so it’s essential to check your policy document or contact LIC directly to confirm.
• Loan Amount: Determine the maximum loan amount you can avail against your policy. This amount is typically a percentage of the policy’s surrender value, which varies depending on the type and duration of the policy.
• Loan Application: Contact your nearest LIC branch or visit their official website to obtain the loan application form. Fill out the form accurately and provide all required details.
• Documentation: Prepare the necessary documents required for the loan application. This may include your policy document, identification proof (such as an Aadhaar card, PAN card, passport, etc.), address proof, and any other documents specified by LIC.
• Loan Processing: Submit the loan application along with the required documents to the LIC branch office or through the online portal, if available. LIC will verify the documents and process your loan application.
• Loan Approval: Once your loan application is processed and approved by LIC, the loan amount will be disbursed to you. The loan amount will be deducted from the policy’s surrender value, and interest will be charged on the loan amount.
• Repayment: Make timely repayments of the loan amount along with the applicable interest as per the terms and conditions specified by LIC. Failure to repay the loan and interest on time may result in the policy’s lapse or reduced benefits.

Make sure you can comfortably repay the loan with interest within the chosen tenure. Missing repayments can lead to a policy lapse, which means you lose the insurance coverage entirely.

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Policy guidelines & helpline, guidelines for policy holders.

We welcome you as a policyholder and as a prospective customer to our customer service section. This section will guide you through the various intricacies of a life insurance contract and the facts that you must know to make the best out of your life insurance policy. Please read our guidelines carefully.

Your Policy Bond And Its Safety

The policy bond is the document that is given to you after we accept your proposal for insurance. The risk coverage commences after acceptance of your proposal and the conditions and privileges of your policy are mentioned in the policy bond. This is an important document which would be referred to for various servicing interactions with you – Keep the policy bond safe. It will be required at the time of settlement of claims on the policy. You will also require it if you are availing a loan or want to assign the policy. Inform your spouse/Parents/Children as to where the policy is kept. In case you are handing over the policy bond to any person or office, please take a written acknowledgement. Keep a Photostat copy of the policy for your reference.

Your Policy Number

The policy number is consisting of nine digits and can be found at the top left hand corner of the schedule of your policy bond. This is a unique identification number that distinguishes your policies from other policies and will remain unchanged throughout the lifetime of the policy. Remember to quote the policy number every time in your correspondence, as it helps us to locate your records for reference.

Policy Conditions

Every policy is taken for different types of needs; therefore the conditions for your policy will vary according to the Plan and Term of the policy. The policy schedule contains on the first page of your policy, like the ones mentioned above as well as other information like nominee, your address etc. It also shows the date of commencement of your policy, date of birth, date of maturity, due dates and months in which the renewal premiums are to be paid etc. The second page onwards carries the various policy conditions like risk coverage, additional risks coverage if opted for, standard benefits that are available for all policies, accident benefit if opted for, exclusion of risks if any and other conditions that govern the contract of insurance. Apart  from death benefits there are other standard benefits and benefits opted by the policyholder, which you might want to familiarize yourself with ( Click here  to know more about various types of policy conditions and their implications).

Alterations In Policy

There may be instances when you would like to make alterations in your policy like change of premium payment mode, reduction in premium paying term etc. Your applications may be given in writing to the branch that services your policy for our further action. There are different types of alterations that are allowed on our life insurance policies(  Click here  to know more about alterations).

If Your Policy Is Lost

Kindly make a thorough search before concluding that you have lost the policy bond. Look for the same within your residence, among your investment papers, at your office and even with your agent to whom you might have entrusted the document for some reason. It could have been even pledged with LIC/any other financial institution for availing a loan by you. LIC retains the policy bond when you go in for a loan against the policy. Make sure that the document you are searching is not one that has already been assigned to LIC, or to another financial institution. If the policy bond is partially destroyed due to natural causes like, fire, flood, etc, the remaining portion may be returned as evidence of loss of policy to LIC, while applying for a duplicate policy. In case you are sure that the policy bond is untraceable due to unknown causes, there is a simple procedure to comply with while applying for the duplicate policy at the branch that services your policy ( Click here  to know about obtaining duplicate policies).

Your Contact Address – Keep Us Posted Without Fail

Your address is very important for us. Without your latest address we would not be in a position to contact you for any service offering. We would not like to keep any benefit that is due to you pending for want of this very important information. Whenever you shift residences, please inform the new address to us. Otherwise any communication we send to you, like premium notices, discharge vouchers for maturity and survival benefits etc., will get delayed in reaching you. LIC provides for change of addresses, inclusion of telephone numbers, mobile numbers and email addresses in your contact addresses information. Kindly inform your servicing branch to incorporate the same in your policy records.

Admission Of Age

Check your policy bond and see if your date of birth is correctly given therein. This is one of the factors on which the premiums you pay for your policy is arrived at. This would also form the basis of all future policies you might avail from us. In case your earlier policies do not have your date of birth incorporated and you do have a date of birth certificate issued by the competent authority, you may send an attested copy of the same to us, with a request to admit your age ( Click here  to find out the certificates of age that LIC accepts.)

Ensure that the nominees name is correctly incorporated in the policy bond. You may change the nomination in your policy any time during the lifetime of the policy In case you have not included the name of the nominee till now, please do not delay; inform us your nomination immediately. Kindly note that the change of nomination has to be done in the branch that services your policy. The nominee is the person to whom the insurance claim amounts would be payable, in case anything unfortunate within the purview of the policy conditions happens to you. The policy is usually taken by you to benefit your family – nominate the persons who’ll have the welfare of your family in your absence; the usual preferences being spouse and children. You may nominate even minors like your children, in which case you have to name another person who’ll have the welfare of the minor children, as an appointee(  Click here  to know more about nomination).

In case you are raising a loan against your policy from LIC or any other financial institution, your policy would have to be assigned to LIC or the financial institution. When you assign the policy the title of the policy is shifted from your name to that of the institution. The  policy would be reassigned to you on the repayment of the loan. A fresh nomination should be done after reassignment of the policy. Assignment of policies can be done even when a loan is not required or for some special purposes (To learn more about assignment  Click here ).

When To Pay The Premiums

Remember to pay your premium in time, even if our notices do not reach you. There may be a postal delay. LIC usually sends premium notices one month in advance to the due month of the premium. The  due months of the premium are given in front page of the Policy bond.

In case you have not paid the premium within the due date there is still time for you to make the payments without payment of interest on the premium. This period is called the grace period. (With the exception of some plans) The grace period for policies where the premium payment mode is monthly is 15 days from the due date. The grace period for policies where the premium payment mode is quarterly, half-yearly or yearly is one month but not less than30 days.

How And Where To Pay The Premiums

• By cash, local cheque (subject to realization of cheque), Demand Draft at Branch Office.
• You can pay your premiums at any of our Branches as 100% of our Branches are networked.
• A policyholder can pay premium online without visiting the servicing branch. The option is available in CUSTOMER PORTAL under Online Payments Tab. Policyholder can also pay it by using PAY DIRECT option after keying in relevant information like Policy number, Insurance Premium, Date of Birth, Mobile number and Email id. E-Receipt will be sent to the email id registered by the policyholder and it will also be available in his/her Portal account.
• LIC premiums can be paid by using Net Banking accounts with following banks: For Authorized Banks Click Here. Other modes of payment are Debit-Cards (VISA/MASTER/RUPAY), Wallets, Payment banks, UPI and Credit cards (AMEX/VISA/MASTER/RUPAY). There are no charges for payment through Debit-card, Net-banking, Wallet and UPI.
• Payments through Credit Cards are subject to a  "Convenience fee". The "Convenience Fee" applicable is entirely absorbed by LIC.
• The premium receipt for the payment through Portal/Pay Direct can be printed online and will also be e-mailed to the Policy Holder at the same time. Simultaneously successful/unsuccessful transaction message will be flashed.
• Policy holder can also opt for payment of premium through NACH mode where mandate to debit the premium from bank account as and when due is to be submitted. Detailed procedure is given under F&Q section.

Policy Status – Where Available

Status of your policy indicates if your policy is in force or has lapsed due to non-payment of premium. It also provides other important information with respect to your policy, for your reference. The status of your policy is available at the branch that services your policies. It is also available through our Interactive Voice Response Systems in select cities ( Click here  to find out if your city is covered). In cities connected by our computerized networks the status will be available in any of the branches. Now the policy status of policies being serviced in the cities connected by network are also available through Internet ( Click here  to register for these services). In select cities online touch screen kiosks are also provided where you can view your policy status.

Revival Of Lapsed Policies

If your policy has lapsed due to non-payment of premiums within the due date, the terms and conditions of the policy contract are rendered void, till you revive your policy. A lapsed policy has to be revived by payment of the accumulated premiums with interest as well as giving the health requirements as required . ( Click here  for knowing more about the revival procedure and the different types of revival allowed) Always keep your policy in force to ensure that your family gets their financial protection assured by your policy. However certain concessions dependent on the term for which you have paid the premiums are available with the exception of some plans for claims concession.( Click here  to know the concessions for delayed premium payment and for claims during the lapsed period).

Availing Loans On Policies

Many of our plans are of endowment type and you would be allowed to raise a loan against your policy should you require funds. You repay the loan with interest or continue paying the interest and allow the loan to be deducted at the time of the claim payments. Further loans on policies are also allowed after deduction of earlier out standings ( Click here  to  find out more about loans on policies). Most financial institutions too allow loans against LIC policies based on the value LIC quotes on request from you.

Surrender Value

This is the value which is the amount payable to you should you decide to discontinue the policy and encash the same from LIC. Surrender value is payable only after three full years premiums are paid to LIC. More over if it is a participating policy the Bonus get attached to it as per prevalent rules. Surrender of policy is not recommended since the surrender value would always be proportionately low. Should you decide to go in for another insurance at this stage further insurance would be available to you at a much higher premium because your age would have advanced since taking out the earlier policy. Therefore retention of earlier policies and continuation of all policies without allowing them to lapse is the best strategy for continuing life insurance protection.

Maturity, Survival Benefits, Disability And Death Claims:

When your Survival Benefits (For Money back policies) or maturity benefits are due, we send intimations to you in advance. However, if the survival benefit amount is less than or equal to Rs.500,000/- the same will be sent to you directly without policy or discharge forms with a few exceptions. If such intimations have not come to you before the due date kindly inform us so that we may take necessary action ( Click here  to know about the claims procedure)

Policies Under Salary Savings Scheme

If you have taken your policy under salary Saving Scheme please read the following suggestions :

• For each Salary Savings Scheme Policy your employer deducts the premium from your salary and sends a consolidated cheque for all the policies of the employees to a designated Branch of LIC, where all the policy files are maintained.
• You can find out which Branch of LIC your policy file will be serviced either from your Agent or from the pay roll department of your employer.
• You will need to know which branch of LIC services your policy because you will require their help in getting your Maturity/Survival Benefits, for any alterations like change of address and for availing loans etc.
• In case you are in a transferable job please inform the designated Branch of LIC about your new place of posting. After you join your new place of posting please ask your employer the LIC Branch where the premiums are being remitted by your office there and inform the LIC Branch which was servicing you earlier so that your policy files can be transferred.
• This way your records will be at correct place and will receive the services from us like maturity, in time. In case you are leaving your employer for a new job or joining another firm, you have the facility to either continue the policy under the Salary Savings Scheme of your new firm or to convert the payment mode into quarterly, half yearly or yearly mode.
• Always ensure the continuity of premium payments to avoid frequent revivals of policy. This may become a cumbersome process for a person who is in a transferable job.
• Please do not send any installments directly to us. Your premium must come through your employer only. We do not have systems to adjust single installments received from our policy holders. Otherwise please convert the mode into quarterly, halfyearly, or yearly and pay directly. This way you also get a discount on the premium payable.
• Leave a permanent local address with us so that we can reach you wherever you are even after many years.

The information contained herein is only to guide you and does not purport to be binding on either party. The contractual implications of your policy will be subject to the terms and conditions of your proposal and the policy document issued to you. They may be also subject to the rules and regulations of the corporation notified from time to time which may be subject to revision and change. The contract will also be subject to the prevailing laws of the country.

To ensure that you get the best out of your policy please read our guidelines carefully.

• Keep the policy bond safe. It will be required at the time of maturity or Survival Benefit. You will also require it if you are availing a loan or want to assign ypur policy.
• Inform your spouse/Parents/Children as to where the policy is kept.
• When you shift residences, please inform the new address to us. Otherwise any communication we send to you, like premium notices, discharge vouchers, etc., will get delayed in reaching you.
• Ensure that the nominees name is correctly incorporated in the policy bond.
• Remember to pay your premium in time. Due months in which premium is due is given in policy bond.
• Check your policy bond and see if your date of birth is correctly given therein.
• In case you are handing over the policy bond to any person or office, including the LIC office please take a written acknowledgement.
• When your Survival Benefits (For Money back policies) or maturity benefits are due, we send intimations to your three months in advance. If such intimations have not come to your even within one month of the due date kindly inform us so that we may take necessary action.
• When in doubt call your agent or the Branch from where you took the policy.

Our Branches are our Operating Units. Hence, for any servicing matter, contact the Servicing Branch of your policy. However, for obtaining general information, you can contact any of the Branches of LIC.

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Loan Against LIC Policy Calculator, Eligibility, Interest Rates, Documents

LIC Policies provide insurance to the client on any adverse life events like death, accident, or illness. Apart from providing life cover to its customers, LIC Policies has a great benefit that allows Policy Holder to get Loan against LIC Policy .

What is a Loan Against LIC policy?

A life insurance policy from LIC or other reputed private insurers is one of the securities you can use as collateral to take a personal loan to meet your domestic or personal requirements. Life insurance policy has annual premiums which you need to pay to the company. If any risky life event takes place under the policy, then the receiver will get the amount of money according to policy or the maturity benefit will be given at the end of the policy. A most important benefit that people are not aware of is money can be reward under personal loans against it, to solve your high-priority situations. You will get 90% of the claim value if you are eligible. Policy claims will be calculated as per the time of availing of a loan.

Surrender Value – It means the amount that is paid by LIC on adverse events and policyholder decides to cancel the policy, the cash vault is called the surrender value. The surrender value of the policy gets increased with an increasing period of the LIC policy. Higher holdings periods give you a good amount of eligibility.

LIC Policy Plans Eligible for Loan

1. endowment plans.

• LIC Jeevan Pragati
• LIC Jeevan Labh
• LIC Single Premium Endowment Plan
• LIC New Endowment Plan
• LIC New Jeevan Anand
• LIC Limited Premium Endowment Plan
• LIC Jeevan Lakshya  LIC Aadhaar Shila
• LIC Aadhaar Stambh

2. Whole Life Plans

• LIC Jeevan Umang

3. MoneyBack Plans       

• LIC Bima Shree
• LIC Jeevan Shiromani
• LIC NEW MONEY BACK PLAN – 20 YEARS
• LIC NEW MONEY BACK PLAN – 25 YEARS
• LIC NEW BIMA BACHAT
• LIC NEW CHILDREN’S MONEY BACK PLAN
• LIC Jeevan Tarun

4. Term Assurance Plans

• LIC TECH TERM
• LIC Jeevan Amar  
• LIC Anmol Jeevan II

5. Benefit rider plans

• LIC’s Linked Accidental Death Benefit Rider
• LIC’s Accidental Death and Disability Benefit Rider
• LIC Accident Benefit Rider
• LIC New Critical Illness Benefit Rider
• LIC New Term Assurance Rider

Eligibility for Loan against LIC Policies

 For applying for a loan against LIC you should go with the following approval process:

• You should have your own activated LIC life insurance policy.
• Your policy should be unit-linked or term insurance policy
• The policy should have admitted defence value.
• Citizens of India can only apply for LIC policies.

Loan against LIC Policy Benefits

• The facility of claiming a loan against LIC Policy is only provided to partnerships, individuals, companies, and single owners of businesses or property.
• You can get the loan on the surrender value of your LIC policy. Maximum cases get 70% to 90% of the surrender value of the policy.
• An online application is available.
• For getting the approval of a loan against your LIC policy, you need to submit a proven action on the document. It will assign the rights to borrow credits from your LIC Policy.
• You can borrow more amount of value than surrender value by subjecting your LIC Policy.
• You can get all the details of your LIC Policy tracked with online and offline networks.
• Only pay interest on the sum you borrow not from the entire amount.
• You can get instant personal loans against the security of your LIC.
• You can borrow a loan against LIC itself or also from other banks.
• If you are unable to keep you’re saving instant, then you do not need to close your running policy.
• You can get a LIC Policy loan with a low interest rate.

Why Loan against LIC Policy is better than other Loans?

The LIC policy loans have several advantages over other loans:

• There is no Guarantor or Security required for getting a loan from LIC.
• You can flexibly repay your loan interest and principal amount.
• LIC offers a very lower Interest Rate amount.
• Available at all nearest bank branch where you live.

How to get Loan against LIC Policy?

 If you fall under the eligibility criteria; you need to follow few steps to borrow a loan against your LIC policy :-

• Visit any bank to the nearest branch.
• Fill application form for a loan and submit it to the representative available there with the required documents.
• Clients who already have a bank account in that branch will need minimum documents.
• Submit form and all documents
• A representative will submit your form further, and you will get the approval of the loan if the entire documents are correct and have no verification problem.
• If the loan is approved, then the amount will be in your savings bank account.

LIC Policy Loan Interest Rate

 LIC’s current rate of interest is ranging from 10% to 12% per annum. The loan will be secured itself by your Policy. Life Insurance Corporation charges a very low amount of interest with a friendly nature to pay the principal amount. It makes low interest so you can also go for a personal loan option. Banks that provide loans against Life Insurance Corporation policy are SBI, Axis Bank, Bank of India, ICICI Bank, and many others.

Documents Required for Loan against LIC Policy

A Policyholder needs to produce the following documents for a loan on his Policy :

• Original LIC Policy Document
• Address Proof (Ration Card, Aadhar Card, Electricity Bill or Passport)
• ID Proof (Aadhar Card, PAN Card or Voter ID Card)
• Income Proof (Bank Account Statement, Salary Slip, Form 16)

Also, check documents required for Home loans & Personal Loan :

• Personal Loan Documents
• Documents for Home loan

How to Repay the Loan on LIC Policy?

Repayment of LIC Policy loan will be lasting a minimum of up to 6 months and maximum up to your maturity of Life Insurance Corporation Policy. Life Insurance Corporation gives a very flexible repayment for the entire client who owns the LIC policy. If you wish to pay it early than six months, then you can.

You must Calculate the EMI to check your repayment capability using our EMI Calculator for the following:

• Home Loan EMI Calculator
• Personal Loan EMI Calculator

LIC Loan Repayment Plans

You can follow any of the Life Insurance Corporation repayment plans:-

• You can pay the interest with the principal at the same time.
• You can pay only the interest, and the principal amount will be calculated with the claim amount of the LIC policy.
• You can pay only interest to LIC for a few years and then repay the principal amount when you have the availability of cash.
• LIC loan payment is not like EMIs. LIC gives a lot of flexibility for repaying your loan interest and principal amount.

Frequently Asked Questions (FAQs)

You can get a loan against a list of approved LIC policy plans. These LIC Policy plans include unit-linked plans, endowment plans, whole life plans, and income plans from many insurers. However, a term insurance policy is not entitled to getting the loan on LIC Policies.

You can get a loan against the insurance policy of LIC starting at Rs 2 lakh, and up to 90% of the surrender value of the policy you applied.

Visit the nearest LIC Branch or Bank that provides a loan on LIC Policy and submit a filled-up Loan Against Security application form, the original policy document,  address, ID, and income proof. The LIC Branch or Bank will inform you about details like loan eligibility, tenure, and interest rates.

The Loan Against LIC policy will be paid out as an overdraft into your linked Bank account. You can draw the funds from your account any time you want.

You need original policy documents, address proof, ID proof, and income proof to get the loan on LIC policy.

• Fri. Apr 19th, 2024

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What's new, free: e-insurance account (eia) | initiative by irdai in the interest of the policyholder, all indian insurance brokers, all general insurance companies in india, all life insurance companies in india.

How to Apply for Loan against LIC Policy Online

Deepesh Raghaw

In an earlier post , I had discussed how you can take loan against your LIC policy to take care of loan requirement. I had also discussed certain aspects as your loan eligibility and the applicable rate of interest for the loan.  You can read the various aspects of loan against LIC policy in this post .

In this post, I want to touch upon an operational aspect i.e. how to apply for the loan.  To apply for the loan, you need to contact your agent or the nearest LIC branch. If this sounds too much work for you, now you can apply for loan against your LIC policy online too .  Not just that, if you have already taken out a loan against the policy, you can make loan repayment or interest payment online too. This is likely to simplify the application process.

How to Apply for the Loan against Your LIC Policy Online?

Firstly, you need to register on the LIC website. You can find the link to register on the home page of the LIC website ( https://www.licindia.in/ ). You can click on the “ Customer portal ” or directly go the following link ( https://licindia.in/Home-(1)/LICOnlineServicePortal ) .  Click on “ New User ”. If you are already a registered user, you can simply log in.  To register on the website, you will need your policy details and certain personal details such as PAN/Aadhaar/Passport. Needless to say, the details should match with the details as mentioned in the policy.  Once you have registered, you can log into the LIC customer portal.

After logging in, you need to register for LIC Premier Services.  You need to be registered as LIC Premier Services User to apply for the loan against your policy online.  To apply for LIC Premier Services, you need to go to Service Registration ???? Service Request ???? Premier Services Registration . 

This registration is a 3-step process. You need to download an auto-generated form. Take a printout of the form. Sign the form. Scan and upload the document on the portal. The service is available free of cost.  Along with the signed form, you will have to upload scanned copy of your PAN (or Aadhaar or Passport) for identification.  Subsequently, you can expect to get approval for Premier Services in a few days or weeks.

Once registered as Premier Services user, you can apply for the loan against your policy online by going to Service Registration ???? Service Request ???? Online Loan Request .

Points to Note/Disclaimer

• You can also make payment for an existing loan through the LIC portal. You can simply go to the following link ( http://www.licindia.in/home/policyloanoptions ) 
• My application for registration as Premier Services User is pending with LIC. You can check the status of your request at Service Registration ???? Service Request ???? Track Request Status .
• Since my registration of Premier User is not yet complete, I am not yet sure the kind of information that is furnished by LIC on the loan application page or the kind of information you need to provide for completing the loan application.
• It is possible LIC automatically displays your loan eligibility. In that case, you do not need to break your head over the eligibility aspect. You may have to provide information such as your bank account details. It is quite possible that the online application process may actually have an offline step. For instance, you may have to download an auto-filled form and send across to LIC office.
• I have no real plans to apply for loan against my LIC policy. In that case, it is difficult for me to comment on how long it is going to take to get the loan money credited to your bank account. This is something you need to try out yourself.

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