Search This Blog

Search letters formats here, sample letter to insurance company for loan against policy.

application letter for loan against lic policy

submit your comments here

Post a comment.

Leave your comments and queries here. We will try to get back to you.

  • 7982774960/ 9693730114
  • infobankwhizz@gmail.com
  • Descriptive
  • Buy Courses
  • Essay Topics
  • Model Essays
  • Login/Signup

Bank whizz

Descriptive English मतलब Bank Whizz

loan application letter against lic policy

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]

Easily Organize, Claim and Renew Insurance!

Turtlemint Logo

Know About Car Insurance

Compare Car Insurance

Know about Car Insurance

  • Third Party Car Insurance
  • Comprehensive Car Insurance
  • Standalone Own Damage Car Insurance
  • Zero Depreciation Car Insurance
  • Taxi Car Insurance
  • Used Car Insurance

Insurance Knowledge

  • Car Insurance Companies
  • Car Insurance Premium Calculator
  • Car Insurance Claim Process
  • Buy, Compare or Renew Car Insurance
  • Cashless Garage
  • Car Insurance Blogs

Read Our Blogs

Find Advisor

Know About Bike Insurance

Compare Bike Insurance

Know about Bike Insurance

  • Third Party Bike Insurance
  • Comprehensive Bike Insurance
  • Zero Depreciation Bike Insurance
  • Add On Cover
  • Stand Alone Own Damage
  • Bike Insurance Companies
  • Bike Insurance Claim Process
  • Bike Insurance Premium Calculator
  • Buy, Compare & Renew Bike Insurance
  • Bike Insurance Blogs

Know About Health Insurance

Compare Health Insurance

Know about Health Insurance

  • Health Insurance Plans
  • Family Health Insurance Plans
  • Senior Citizen Health Insurance
  • Critical Illness Insurance
  • Mediclaim Policy
  • Coronavirus Health Insurance
  • Health Insurance Tax Benefit
  • Health Insurance Companies
  • Health Insurance Claim Process
  • Buy, Compare or Renew Health Insurance
  • Health Insurance Blogs

Know About Life Insurance

Compare Life Insurance

Know about Life Insurance

  • Term Insurance Policy
  • Money Back Policy
  • Endowment Policy

Life Insurance Companies

  • Life Insurance Premium Calculator
  • Compare & Buy Life Insurance plan
  • Human Life Value Calculator
  • Life Insurance Riders
  • Life Insurance Blogs

Raise A Claim

How to get a Loan against LIC policy?

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.

Found this post informational?

Browse Turtlemint Blogs to read interesting posts related to Health Insurance , Car Insurance , Bike Insurance , and Life Insurance . You can visit Turtlemint to Buy Insurance Online.

Get Best Insurance Quotes For

Health Insurance

Life Insurance

Car Insurance

Bike Insurance

Related Blogs

Top Life Insurance Companies in India (Updated List 2024)

Table of Contents Introduction to Life Insurance What Does Life Insurance Cover? Common Types of Life Insurance…

Ankita Sejpal

Feb 05, 2024

What is Mobile Insurance? Compare Mobile Phone Insurance…

Mobiles have become the part and parcel of the modern generation. It is no longer just a means to talk with people, mobiles today…

Dec 28, 2023

Difference Between Annuity & Life Insurance

Life is full of surprises. Understanding and planning before any unforeseen events give you the benefit of financial stability….

Rupanjali Mitra Basu

Dec 27, 2023

Employees’ State Insurance Scheme – All you need to…

Table of Contents What is the ESIS? What is the Employees’ State Insurance Corporation? Employees’ State Insurance…

YSR Pension Kanuka Eligibility Criteria, Benefits &…

Table of Contents Introduction to YSR Pension Kanuka YSR Pension Kanuka eligibility criteria  Features of YSR…

Dec 21, 2023

Deferred Annuity: Meaning, Benefits, Types & How It…

Financial planning is important in all phases of life. But planning for retirement is vital to secure social status and…

Jul 29, 2022

Assignment vs Nomination in Life Insurance

Table of Content: Difference between nomination and assignment What is nomination in life insurance? Types of nominees in life…

Jul 20, 2022

Is Suicide Covered Under Life Insurance Policy

Life insurances are your safety protocols. They are to support the family after their family member’s demise financially. But…

Jul 19, 2022

Aviva Life Insurance Logo

Confused about insurance? Let’s simplify it together!

Submit your details for expert guidance and hassle-free assistance.

loan application letter against lic policy

IRDAI certified expert advice

loan application letter against lic policy

Application assistance

loan application letter against lic policy

Claim support

Get free advice

Now sit back and relax!

Our advisor will reach out to you shortly!

loan application letter against lic policy

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.

Track My PF

  • Free Credit Score
  • Emi Calculator

Blog

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.

Amit Arora Finnable

Marriage Loan

Vehicle Loan

Travel Loans

Shopping Loans

Medical Loan

Home Renovation Loan

Education Loan

Personal Loan

Ashirwad Loan

Insurance Partner

Do’s & Don’ts to Prevent Frauds

Privacy Policy

DLG Disclosure

EMI Calculator

Raise a Query

Customer Care

Google Play App Logo

  • Personal loan in Bangalore
  • Personal Loan in Jalandhar
  • Personal loan in Vapi
  • Personal loan in Udaipur
  • Personal loan in Prayagraj
  • Personal loan in Delhi
  • Personal loan in Kolkata
  • Personal loan in Mysore
  • Personal loan in Amritsar
  • Personal loan in Chennai
  • Personal loan in Jodhpur
  • Personal loan in Nashik
  • Personal loan in Mumbai
  • Personal loan in Vijayawada
  • Personal loan in Hubli
  • Personal loan in Ahmedabad
  • Personal loan in Nellore
  • Personal loan in Jabalpur
  • Personal loan in Aurangabad
  • Personal loan in Pune
  • Personal loan in Patna
  • Personal loan in Bhubaneshwar
  • Personal loan in Surat
  • Personal loan in Calicut
  • Personal loan in Gwalior
  • Personal loan in Nagpur
  • Personal loan in Madurai
  • Personal loan in Chandigarh
  • Personal loan in Bharuch
  • Personal loan in Thiruvananthapuram
  • Personal loan in Varanasi
  • Personal loan in Hyderabad
  • Personal loan in Cochin

Terms and condition and legal disclaimer

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.

finnable company logo

Lending Partners

Do’s & Don’ts to Prevent Frauds

Grievance Redressal Policy

Popular Searched Words

Personal loan in Ahmedabad |  What Is Unsecured Loans  |  Education Loan For MBBS  |  Types Of Personal Loan  |  Difference Between Secured And Unsecured Loans  |  How To Apply For A Student Loan  |  Difference Between Credit Score And Cibil Score  |  Types Of Unsecured Loans  |  Home Loan Vs Personal Loan  | How To Repay Loan Faste

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.

Check your Loan Eligibility in 2 min

  • Personal Loan
  • Loan Against LIC Policy

How to Get a Loan Against LIC Policy

A life insurance policy aims to give financial protection to the survivors of the policyholder in the event of the death of the insured. There are different kinds of policies that give this benefit- Term insurance plans, endowment, money back, whole life, or Unit Linked Insurance Plans.

Term insurance policies pay the sum insured only in the event of death. On the other hand, endowment policies/money back policies or Whole Life policies make payments to the insured on surviving a certain number of years or on maturity.

For Example:

The payback may happen on 15 years of policy payment, getting to a certain age like 50, 60, etc. The maturity benefit (sum insured) in a moneyback policy can also be paid in installments. In addition to payment of maturity benefits, the sum insured as a lump sum amount is paid in case of the death of the insured.

Life Insurance Corporation or LIC is the biggest insurer in India which issues term plans as endowment policies. The same is done by many other private sector insurers like ICICI Prudential, HDFC Life, SBI Life, etc.

What is a Loan Against LIC Policy?

A loan is a LIC policy is a loan that can be availed against the security of your LIC policy. The policy gets assigned to the lender till the loan is paid back in full by the borrower. If the borrower is unable to pay the loan back, then the lender gets all the benefits that are accrued to the policy.

During the term of the loan, the insured will continue to pay premiums on the policy, as usual, the life cover will also continue.

A loan against an insurance policy is also available when the insurance policy is available from a private insurer.

What Kind of LIC Policy Can Be Used for Availing a Loan?

As explained earlier, Life insurance policies can either be term policies or policies with a surrender value. However, only endowment or money-back policies are allowed to be given as collateral/security against a loan. This is because, in terms of insurance plans, the sum insured is payable only when there is the death of the insured. Unit Linked Insurance Policies that have values linked to .he stock markets also may not be accepted as security for a loan by all lenders.

In other words, only those policies that have a guaranteed surrender value can be eligible for availing a loan. The surrender value of an insurance policy is the value payable when the policy is surrendered on any date.

Where Can a Loan Against a LIC Policy Be Availed?

A loan against a LIC policy can be availed from the insurer, Life Insurance Corporation of India, or LIC Housing Finance. Many banks also offer loans on LIC policies or policies issued by other private insurers

Some of the banks that allow loans against LIC policies are:

  • Kotak Mahindra Bank
  • State Bank of India

What is the Interest Charged on a Loan Against the Insurance Policy?

The Life Insurance Corporation of India charges an interest rate in the range of 9-10% depending upon the insurance plan. While banks charge in the range of 10-15% for a loan against an insurance policy. But many of the banks offer loans/overdrafts against LIC/other insurance policies only to their account holders.

How to Avail of a Loan Against a LIC Policy?

There are two ways of availing a loan against a LIC/Insurance Policy. Both online and offline channels can be used to get a loan depending upon the one which you are comfortable with.

Online Way of Getting a Loan Against LIC Policy

The online way of getting a loan against an insurance policy is available only with the insurance companies. LIC offers an option to its subscribers to apply for a loan on its online portal.

The process is fairly simple which is described as below

  • Register yourself on LIC portal .
  • Go to the tab of Online Services
  • Click on the Online Loan option
  • This takes you to the Online Policy Options where you can place a request for a loan under the Online Loan Request Tab.
  • After placing the request, you may need to upload your KYC documents for verification

The screens for the steps are given below for your convenience

loan application letter against lic policy

Getting a Loan By Offline Method

To get a loan by offline method, you would need to follow the steps mentioned below

  • Approach the nearest LIC office or a bank branch with the required documents like the policy document and the KYC documents like your identity and the address proof.
  • Sign the required application form and get the particulars of the loan like the interest charged, tenure of the loan, etc
  • Finally, you get the loan in a lump sum or as an overdraft

What is the Amount of Loan that is Available Against the Insurance Policy?

The amount admissible as a loan against the insurance policy is in the range of 70-90% of the surrender value of the policy.

How Can the Repayment of the Loan Against the LIC Policy Be Done?

Normally LIC offers relaxed payment options for a loan against its policy.The loan repayment could be done in the following ways.

  • Pay interest and the principal in loan EMIs
  • Pay only the interest regularly and pay principal in due course
  • Pay the interest and regularly and adjust the outstanding loan amount(principal) against the maturity benefits.

However, when you avail of a loan from a bank, you would have to pay back the loan in regular EMIs.

Important Features and Benefits of Availing a Loan Against LIC Policy

There are some important features and benefits that you should keep in mind before availing a loan against a LIC policy are:

  • The loan against a LIC policy comes at a cheaper rate than a personal loan (10% onwards) or a credit card interest rate (36-48%).
  • Like a personal loan, loan availed against a LIC policy can be used for any purpose according to your needs
  • Availing a loan against a LIC/Insurance policy would not require a credit score. This can come across as one of the greatest advantages for an individual with a bad credit score
  • The life cover on the policy will continue in spite of availing the loan. In case of death of the insured (borrower) then the death benefit will be paid after deducting the quantum of the outstanding loan.
  • The processing time for a loan against an insurance policy is minimal especially when it obtained from the insurer.
  • Due to various kinds of repayment available, a lesser financial burden is created on availing this loan
  • A loan can be availed only after the policy accumulates a certain surrender value, which means during the initial years of the policy it would be difficult to avail a loan against the policy.

While availing of a loan against a LIC/Insurance policy seems easier and is also available at lower interest rates, you should avail of this loan with caution. Like any other loan, avail this loan only if you are sure of paying it back on time. Or else the beneficiaries of your policy may end up losing the benefit in case of any eventuality.

Internal Links

  • Loans Against EPF
  • Loan Against Fixed Deposit
  • Loan Against Property
  • Salary Advance Loan
  • Payday Loans
  • Personal Loan Balance Transfer
  • NRI Personal Loan
  • Long Term Loan Details
  • Short Term Loan Details
  • Start up Business Loans
  • Business Loans for Women
  • Personal Loans for Women in India
  • Small Business Ideas for Women
  • Government Loan Schemes for Womens in India
  • MSME / SME Loan

Was this information useful?

300 characters allowed (alphanumeric and special characters such as comma, full stop, @, ", &)

Thank you. Your feedback is important to us.

modal_image

Apply for personal loan

An OTP will be sent for verification

InsuranceLiya.com

IL new logo

Looking to Get Insured?

+91 965-367-9024

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.

Related articles

LIC Jeevan Akshay 7 (An Annuity Policy that Secures Your Future)

LIC vs Mutual Funds- Understanding the Difference

Features and Benefits of LIC Varishtha Pension Bima Yojana

LIC Jeevan Umang Plan- The Dual Benefit Policy

Experience the power of Artificial Intelligence (A.I)

Chat with our super-intelligent A.I model and ask it anything about insurance and related products.

EMI Calculator

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 .

loan application letter 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.

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.

Leave a Reply Cancel reply

5 responses to “ how to apply for loan against lic policy online ”.

TOI logo

  • Business News

Loan Against LIC Policy: How to apply online?

Loan Against LIC Policy: How to apply online?

Visual Stories

loan application letter against lic policy

PPF Calculator

This financial tool allows one to resolve their queries related to Public Provident Fund account.

PPF Calculator

FD Calculator

When investing in a fixed deposit, the amount you deposit earns interest as per the prevailing...

FD Calculator

NPS Calculator

The National Pension System or NPS is a measure to introduce a degree of financial stability...

NPS Calculator

Mutual Fund Calculator

Mutual Funds are one of the most incredible investment strategies that offer better returns...

Mutual Fund Calculator

Other Times Group News Sites

Popular categories, hot on the web, trending topics, living and entertainment, latest news.

loan application letter against lic policy

  • Download LIC Apps
  • +91-22-68276827

LIC on Twitter

Language Selector

Voice Search

Menu Display

  • Download Forms

Online Forms

Claims Under Regular Life Insurance Policies 01. Death Claims: The person legally entitled to receive the policy monies should give intimation of death of the policyholder to the servicing Branch. The requirement for the claim are as given below:

  • Claim Form 'A' in Form No.3783. If policy has run for 3 years or more from date or risk, claim form no.3783A may be used.
  • Certified extract from death register.
  • The original policy document with Deed/s of assignment/s, if any. (Additional requirement may be required under a policy according to the status of the policy. Please contact our servicing Branch for details).

attached file is in PDF Document Format

02. Maturity Claims:

  • It is our endeavour to settle your maturity claim on or before the due date. The servicing Branch usually sends maturity claim intimations two months in advance.
  • Please submit your Discharged Receipt in Form No.3825 with original policy document atleast one month before the due date so that the payment is received before the due date of maturity claim.
  • If you have not received any intimation for your claim due in the next two months, please contact the servicing Branch immediately.

03. Survival Benefit Claims forms:

04. Revival Forms

Revival of Lapsed Policy- Form no. 680

Revival of Lapsed policy - Form no. 700

Revival of lapsed Policy- Form no. 720

09. Health Insurance Forms Click here to download

10. Pre-contract Integrity Pact

11. Forms required for issuance of duplicate policy

12. Self Certification form for FATCA and CRS

13. P&GS Claims Related forms

14. Annuity Claim forms

15. Annexures

  • Things you must know
  • Why Life Insurance
  • Last Updated on : 05/12/2023
  • Anti-Bribery And Anti-Corruption Policy
  • Anti Fraud Policy
  • Citizens Charter
  • Copyright Policy
  • Customer Education
  • Central Vigilance Commission Website Link
  • Employee's Corner
  • Enquiry of Outstanding Claims for the Current Year
  • Equal Opportunity Policy
  • Frequently Asked Questions
  • Golden Jubilee Foundation - Community Development
  • Hyperlink Policy
  • International Operations Associates
  • Investee-AMRIT
  • IRDAI Consumer Education
  • Join Our Team
  • Photo Gallery
  • Policy for protection of interests of policyholders
  • Press-Release
  • Privacy Policy
  • Rajbhasha Patrika
  • Retired Employees Portal
  • Stewardship Policy & Disclosure
  • Swachh Bharat Campaign
  • Tender –Award
  • Terms & Conditions
  • Unclaimed Amounts of Policyholders
  • Underwriting Philosophy
  • Welcome Kit
  • LIC Pension Fund Limited
  • LIC Cards Services Limited
  • LIC Mutual Fund Trustee Private Limited
  • LIC Mutual Fund Asset Management Limited
  • LIC Housing Finance Limited
  • LICHFL Asset Management Company Limited

Copyright © 2023 - All Rights Reserved - Official website of Life Insurance Corporation of India.

For any query regarding this website, please contact the Web Information Manager

Manoj Sharad Kulkarni, Administrative Officer, co[underscore]cc[at]licindia[dot]com

Policy holders may send their policy related grievances on email id co[underscore]complaints[at]licindia[dot]com

Content on this website is published and managed by Life Insurance Corporation of India.

Corporate Office : Yogakshema Building, Jeevan Bima Marg, P.O. Box No – 19953, Mumbai – 400 021 IRDAI Reg No- 512

Life Insurance Corporation of India, Administrative Officer, Corporate Communication Dept.

Image of Government of India

Powered by PECS on Liferay DXP

LICOnline Service Portal

loan application letter against lic policy

How to Get a Loan Against LIC Policy

No one knows when the financial emergency occurs on them. Here, the role of instant loans comes. The loan helps people manage their finances in case of any demise or challenges. In case when you do not have assets to pledge but have an LIC plan, then you can use it to avail of the loan. LIC keeps your credit score high and helps you get a loan easily when you need it. The loan facilities against the LIC Policy help you to meet your financial needs. In this post, we are going to tell you about the Loan against LIC Policy, eligibility for it, the process to avail of this loan, and many more.

What is a Loan Against LIC Policy?

A loan is a LIC policy is a loan that may be availed towards the safety of your LIC policy. The policy receives assigned to the lender till the loan is paid returned in full by using the borrower. If the borrower is unable to pay the loan lower back, then the lender receives all of the benefits which can be accumulated to the policy.

During the time period of the loan, the insured will continue to pay charges on the coverage, as ordinary, the existence coverage may also maintain. A loan in opposition to a coverage policy is likewise to be had when the coverage policy is to be had from a private insurer.

Important Features of Availing a Loan Against LIC Policy

There are a few critical features which you have to maintain in mind before availing a loan in opposition to a LIC policy are

  • The loan against a LIC coverage comes at a less rate than a personal loan (10% onwards) or a credit score interest rate (36-48%).
  • Like a private loan, a loan availed towards LIC coverage may be used for any reason according to desires.
  • Availing a loan towards a LIC/Insurance coverage could not require a credit score. This can come across as one of the greatest benefits for an individual with a credit rating.
  • The existence cover at the coverage will retain in spite of availing the loan. In case of demise of the insured (borrower) then the dying gain will be paid after deducting the quantum of the amazing loan.
  • The processing time for a loan towards an insurance policy is minimal, specifically whilst it is received from the insurer.
  • Due to the various types of repayments to be made, a lesser financial burden is created when availing of this loan.
  • A loan may be availed handiest after the policy accumulates a certain surrender rate, because of this at some stage in the preliminary years of the policy it would be hard to avail a loan in opposition to the policy.

Like some other loan, avail this loan only in case you are sure of paying it lower back on time. Or else the beneficiaries of your coverage can also come to be dropping the benefits in case of any eventuality.

Eligibility Criteria for a Loan in Opposition to LIC Policy

Here are the eligibility criteria for a loan towards LIC policy

  • The least possible age of the borrower should be 18 years.
  • A borrower needs to possess an official LIC policy.
  • A minimum of three years of LIC top rate has to be absolutely paid.
  • Mostly, monetary establishments provide this credit score facility to the Indian centres.
  • The loan towards LIC coverage must own assured give-up value.

What makes Loan against LIC Policy better than others?

The LIC policy loans have several benefits over different loans

  • There is not any Guarantor or Security required for purchasing a loan from LIC.
  • You can flexibly repay your loan interest and main amount.
  • LIC offers a very decreased Interest Rate amount.
  • Available at all nearest bank departments where you stay.

Essential Documents

You must post the following documents even as you are taking a loan towards the existing insurance policy

  • The official record of the coverage
  • Properly filled out the application form except for the passport-size picture.
  • ID Proof- PAN Card, Aadhar Card, etc
  • Address proof- Electricity Bill, Voter Card, Aadhar Card, etc
  • Income proof- Salary slips, bank A/C details
  • Premium paid receipt

Loan against LIC Policy Application Process

Here’s the way to apply online for a loan against the LIC policy

  • To create an account, go to the LIC e-Services Portal and pick out “Don’t Have an Account? The “Sign Up” button.
  • To sign on for LIC eServices online, fill out the necessary records.
  • You can whole the registration procedure by deciding on a password after clicking “Proceed” to start the registration manner. To log into your account, you may either create a User ID or use your electronic mail or cellular tool.
  • You can get access to your coverage information as well as the array of eServices provided via LIC after effectively logging in.
  • Verify whether your insurance coverage qualifies for a loan secured through a LIC policy.
  • If so, you will be able to view the loan’s terms, conditions, interest fees, and different capabilities online.
  • You may want to ship your KYC files to the local LIC Office or upload them after submitting the application with a view to execute your loan request.

Individuals going through problems due to any monetary disaster can avail of a loan towards the LIC policy. It has numerous benefits, like low-interest rates and a lower repayment burden. If you’re in an economic disaster and want a loan, you may keep in mind a loan against the LIC policy. However, communicate with an LIC agent to get all the targeted records. You should also check if you can pay off the loan without introducing a financial burden.

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

IMAGES

  1. Sample Letter to Insurance Company for Loan against Policy

    loan application letter against lic policy

  2. Application Letter for Loan against LIC policy// Loan Application

    loan application letter against lic policy

  3. Sample Letter to Insurance Company for Loan against Policy

    loan application letter against lic policy

  4. LIC loan application

    loan application letter against lic policy

  5. LIC Loan form online download

    loan application letter against lic policy

  6. LIC Policy Loan Application Form

    loan application letter against lic policy

VIDEO

  1. LIC Policy & Personal Loan (In Record Time) #shorts

  2. loan application letter

  3. LIC ਪਾਲਿਸੀ ਦੇ ਖਿਲਾਫ ਲੋਨ || Loan against LIC Policy in Punjabi || bekifaayati Punjabi

  4. LIC Policy Loan

  5. Legal Notice under Section 138 & 25 || Loan Default || क्या फर्क है दोनो धाराओं में ?🤔 कैसे बचा जाए?

  6. LIST OF DOCUMENTS FOR LOANS

COMMENTS

  1. Sample Letter to Insurance Company for Loan against Policy

    Application for a personal loan against my insurance policy. Dear Sir/Madam, I am presently holding a life insurance policy bearing number ________. The policy is maintained with your branch office, which I had opened on (Date). The policy is for a period of __ years with a fixed sum insured value of (Amount).

  2. Letter for Applying Loan Against Insurance Policy

    Bengaluru. December 1, 2014. The Divisional Manager, Life Insurance Corporation of India, IT Complex Road, Bengaluru. Sub : Loan against Life Insurance Policy No 99945 for Rs 10,00,000/-. Dear Sir, I got myself insured for life for a sum of Rs 10,00,000/- (Rs Ten Lakh only), vide the said insurance policy in the year 2004.

  3. PDF Loan Application Form

    APPLICATION FOR LOAN AS UNDER WHERE THE POLICY ALREADY BEARS THE ENDORSEMENT OF TERMS AND CONDITIONS OF LOAN OR WHERE THE POLICY HAS BEEN ISSUED ON OR AFTER 1-6-1969 (1) Fresh loan where previous loan is subsisting. (2) Further loan where previous loan granted at 6% or 7 ½ % or 9% is subsisting. The Sr. Divisional Manager,

  4. Loan Against LIC Policy: Interest Rate, Eligibility & How to Apply

    Loan Against LIC Policy - Interest Rates. Life Insurance Corporation of India is not the only lender that offers loans against LIC or other life insurance policies. The interest rates for this loan in the case of some leading banks and NBFCs are*: Axis Bank. Max. Loan Amt. Up to ₹40L. Rate of Interest. 10.49% - 22%.

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

    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. I am writing this letter to request a loan ...

  6. Loan Against LIC Policy: Eligibility, Documents, Features & How To Apply

    Submit all the necessary KYC documents along with the original LIC policy document. LIC will verify the details of the application and then a personal loan of up to 90% of the policy's surrender value will be granted. Here is the online process to apply for a personal loan against your LIC policy: Visit the official LIC website at www ...

  7. LIC Policy Loan Options

    Policy Loan Options. Loan Repayment/. Loan Interest Payment. Pay Direct (Without login) Pay through Customer Portal. Online Loan Request. Through Customer Portal. ( For Premier Service Registered Customers Only) Last modified date : Fri, 18 Aug 2023 07:28:57 +0000.

  8. Loan against LIC Policy

    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.

  9. Loan against LIC Policy Online: All You Need to Know

    The Loan Against LIC policy is paid out as an overdraft into your HDFC Bank account. You can draw the funds from your account any time you want. The good thing about the loan is that you are liable to pay interest only on the amount you use and for the duration you use it. For example, if you have taken a loan of Rs 2 lakh, and you draw just Rs ...

  10. How to Take A Loan 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 ...

  11. Loan Against LIC Policy: From How To Apply To Eligibility Criteria

    - The loan amount is an advance on the policy's surrender value. - LIC considers the insurance policy as collateral, enabling them to withhold the loan in case of default. - Not all LIC policies offer the option of obtaining a loan. - If the loan amount exceeds the policy's surrender value, LIC can terminate the policy. - If the insurance ...

  12. Loan Against LIC Policy, How to Get Loan Against LIC Policy

    The loan against a LIC policy comes at a cheaper rate than a personal loan (10% onwards) or a credit card interest rate (36-48%). Like a personal loan, loan availed against a LIC policy can be used for any purpose according to your needs; Availing a loan against a LIC/Insurance policy would not require a credit score.

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

    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. The process to apply for a loan against LIC policy. You can apply for a loan in 2 ways, offline and online. Let us lay down both loan application processes for you.

  14. How to Apply For Loan Against LIC Policy Online and ...

    Select 'Online Loan.'. Next click on 'Through Customer Portal' for an online LIC loan. Log in through user id, DOB, and password to proceed to log in. Select a policy against which loan is to be ...

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

    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.

  16. How to Apply for Loan against LIC Policy Online

    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.

  17. LIC Policy Guidelines For Policy Holders

    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.

  18. How to apply Loan Against LIC Policy online

    Here are the steps you need to follow to apply for a loan against your LIC policy. 1. Go to the official website of LIC- licindia.in. 2. On the home page, click on the 'Online Loan' under the ...

  19. Application Letter for Loan against LIC policy// Loan Application

    In this vedio I have shown how to write an application letter for loan against LIC policy. I hope that this will be helpful to all of you. #applicationletter...

  20. Download LIC India Forms for Hassle-Free Transactions

    Access essential forms for LIC transactions effortlessly. Download a variety of forms for policy-related services and ensure a smooth experience with LIC India. ... If policy has run for 3 years or more from date or risk, claim form no.3783A may be used. ... 07. IPP-Letter of Indemnity Click here to download (Content is in English and Hindi)(58 ...

  21. Application Letter to the LIC Office for Loan against Policy ...

    Application Letter to the LIC Office for Loan against Policy in English | Application for a Loan |-----Application Letter to the LIC Off...

  22. LIC Policy Loan Application Form

    LIC Policy Loan Application Form. This is a LIC Loan application Form issued by the Life Insurance Corporation of India & this form can be obtained from the nearest branch of LIC or it can be downloaded from the link given below in high-resolution and printable format. A life insurance policy is meant to provide financial coverage to one's ...

  23. How to Get a Loan Against LIC Policy

    The loan against a LIC coverage comes at a less rate than a personal loan (10% onwards) or a credit score interest rate (36-48%). Like a private loan, a loan availed towards LIC coverage may be used for any reason according to desires. Availing a loan towards a LIC/Insurance coverage could not require a credit score.