Trusted by 1L+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 1L+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below
Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below
Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Trusted by 3 Crore+ Indians
Want to Achieve any of the below Goals upto 80% faster?
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
Loan Against LIC Policy
Loan Against LIC Policy
Life Insurance Corporation of India (LIC) offers its policyholders the opportunity to avail loans against select insurance policies directly from the corporation itself. When availing such a loan, the policyholder’s policy is held by LIC as collateral until the loan is fully repaid. The policies eligible for such loans include endowment plans, whole life plans, money back plans, and pension plans. The maximum loan amount sanctioned can be up to 90% of the policy's surrender value (up to 85% in the case of paid-up policies), including the cash value of bonuses. The interest on the loan is payable on a half-yearly basis, with a minimum loan tenure of six months from the date of disbursement.
Key Features of Loan Against LIC Policy
Loan Amount: Up to 90% of the surrender value of the policy.
Interest Rates: These are policy-specific and announced annually by LIC.
Minimum Tenure: 6 months from the date of loan disbursement.
Maximum Tenure: As per the policy tenure.
Repayment: Interest is payable on a half-yearly basis; the principal can be repaid based on the policyholder’s financial situation.
Alternatives to Loans Against LIC Policy
While availing a loan against an LIC policy can be a viable option, it is important to consider other secured loan alternatives to avoid jeopardizing the financial security provided by the life insurance policy. Here are some alternatives:
Gold Loans: Loans secured against gold assets.
Loan Against Property: Loans secured against immovable property.
Loan Against Mutual Funds/Stocks/Debentures: Loans secured against financial securities.
Personal Loans: Unsecured loans offered by banks and NBFCs to individuals with good credit profiles.
Many financial institutions offer pre-approved personal loans to their existing customers based on their credit profiles. These loans come with instant disbursals, often within a few hours or even seconds of application.
Personal Loan Interest Rates from Various Banks and NBFCs:
HDFC Bank: Interest rates range from 10.5% to 24%, with a maximum loan amount of up to ₹40 lakh and a tenure of up to 6 years.
Axis Bank: Interest rates range from 10.99% to 22%, with a maximum loan amount of up to ₹40 lakh and a tenure of 1-5 years.
Kotak Mahindra Bank: Interest rates range from 10.99% to 36%, with a maximum loan amount of up to ₹40 lakh and a tenure of up to 6 years.
IDFC First Bank: Interest rates range from 10.99% to 23.99%, with a maximum loan amount of up to ₹10 lakh and a tenure of up to 5 years.
ICICI Bank: Interest rates range from 10.8% to 16.15%, with a maximum loan amount of up to ₹50 lakh and a tenure of 1-6 years.
Detailed Information on Loans Against LIC Endowment Plans
LIC Bima Jyoti
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%), compounded on a half-yearly basis.
LIC Bima Ratna
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC’s Dhan Sanchay
Eligibility:
Under Regular/Limited premium payment: Premiums should be paid for at least two years.
Under Single Premium payment: The policy loan can be availed anytime after three months from the date of issuance or after the Free-look Period, whichever is later.
Maximum Loan Amount:
Regular/ Limited Premium Payment:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Single Premium Payment: Up to 75% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Jeevan Azad
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC New Endowment Plan
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC New Jeevan Anand
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Single Premium Endowment Plan
Eligibility: Completion of at least one policy year.
Maximum Loan Amount: Up to 90% of the Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Lakshay
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Labh
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Aadhaar Stambh
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Aadhaar Shila
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
Loan Against Whole Life Plans
LIC’s Jeevan Utsav
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
Before the beginning of the policy year in which the first Regular Income Benefits/ Flexi Income Benefit becomes due:
For in-force policies: Up to 75% of Surrender Value.
For paid-up policies: Up to 50% of Surrender Value.
After the beginning of the policy year in which the first Regular Income Benefits/ Flexi Income Benefit becomes due:
Loan amount is arrived in such a way that the effective annual interest component does not exceed 50% of the annual benefit.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Jeevan Umang
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
During the premium paying term:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
After the premium paying term:
Loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual survival benefit.
Interest Rate: Based on the method approved by IRDAI.
Loan Against Money Back Schemes
LIC Dhan Rekha
Eligibility:
Regular/Limited premium payment: Premiums should be paid for at least two years.
Single Premium Payment: Loan can be availed any time after three months from the policy issuance date or after the Free-look Period, whichever is later.
Maximum Loan Amount:
Regular/ Limited Premium Payment:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Single Premium Payment: Up to 75% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC New Bima Bachat
Eligibility: Completion of at least one policy year.
Maximum Loan Amount: Up to 90% of the Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC New Money Back Plan – 20 Years
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC New Money Back Plan – 25 Years
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Umang
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
During the premium paying term:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
After the premium paying term:
Loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual survival benefit.
Interest Rate: Based on the method approved by IRDAI.
LIC New Children’s Money Back Plan
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Tarun
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Shiromani
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Bima Shree
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
Loan Against Pension Plans
LIC Jeevan Dhara II
Eligibility:
Annuity Plans with return of premium options: Premiums should be paid for at least two years.
Return of Purchase Price Plans: Loan can be availed any time after three months from the policy issuance date or after the Free-look Period, whichever is later.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Saral Pension
Eligibility: Loan can be availed any time after six months from the policy commencement date. Under the joint life annuity option, the loan can be availed by the annuitant or the spouse.
Maximum Loan Amount: The loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual annuity amount payable.
Interest Rate: Up to (10-year G-Sec Rate + 2%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Jeevan Akshay – VII
Eligibility: Loan can be availed under Immediate annuity for life with return of purchase price or Joint life immediate annuity for life with a provision for 100% annuity payable as long as one annuitant survives.
Maximum Loan Amount: Loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual annuity amount payable, subject to a maximum of 80% of the surrender value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC’s New Jeevan Shanti
Eligibility: Loan can be availed any time after three months from the policy issuance date or after the Free-look Period, whichever is later. Under the joint life policy, the loan can be availed by the primary annuitant or the secondary annuitant.
Maximum Loan Amount: Loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual annuity amount payable, subject to a maximum of 80% of the surrender value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
How to Apply for a Loan Against LIC Policy
Policyholders can apply for a loan against their LIC policies online through LIC’s customer portal (https://ebiz.licindia.in/D2CPM/#Login). This portal is accessible only to premier service registered customers. Other LIC policyholders must visit LIC branch offices to apply for the loan.
Conclusion
Taking a loan against an LIC policy can be a strategic financial decision for policyholders needing funds while retaining their life insurance coverage. However, it’s crucial to weigh this option against other loan alternatives and carefully consider the interest rates and repayment terms. Comparing offers from various lenders, including banks that offer loans against securities, can help policyholders secure the best terms for their needs. By understanding the nuances of loans against LIC policies and exploring all available options, policyholders can make informed decisions that support their financial well-being.
Life Insurance Corporation of India (LIC) offers its policyholders the opportunity to avail loans against select insurance policies directly from the corporation itself. When availing such a loan, the policyholder’s policy is held by LIC as collateral until the loan is fully repaid. The policies eligible for such loans include endowment plans, whole life plans, money back plans, and pension plans. The maximum loan amount sanctioned can be up to 90% of the policy's surrender value (up to 85% in the case of paid-up policies), including the cash value of bonuses. The interest on the loan is payable on a half-yearly basis, with a minimum loan tenure of six months from the date of disbursement.
Key Features of Loan Against LIC Policy
Loan Amount: Up to 90% of the surrender value of the policy.
Interest Rates: These are policy-specific and announced annually by LIC.
Minimum Tenure: 6 months from the date of loan disbursement.
Maximum Tenure: As per the policy tenure.
Repayment: Interest is payable on a half-yearly basis; the principal can be repaid based on the policyholder’s financial situation.
Alternatives to Loans Against LIC Policy
While availing a loan against an LIC policy can be a viable option, it is important to consider other secured loan alternatives to avoid jeopardizing the financial security provided by the life insurance policy. Here are some alternatives:
Gold Loans: Loans secured against gold assets.
Loan Against Property: Loans secured against immovable property.
Loan Against Mutual Funds/Stocks/Debentures: Loans secured against financial securities.
Personal Loans: Unsecured loans offered by banks and NBFCs to individuals with good credit profiles.
Many financial institutions offer pre-approved personal loans to their existing customers based on their credit profiles. These loans come with instant disbursals, often within a few hours or even seconds of application.
Personal Loan Interest Rates from Various Banks and NBFCs:
HDFC Bank: Interest rates range from 10.5% to 24%, with a maximum loan amount of up to ₹40 lakh and a tenure of up to 6 years.
Axis Bank: Interest rates range from 10.99% to 22%, with a maximum loan amount of up to ₹40 lakh and a tenure of 1-5 years.
Kotak Mahindra Bank: Interest rates range from 10.99% to 36%, with a maximum loan amount of up to ₹40 lakh and a tenure of up to 6 years.
IDFC First Bank: Interest rates range from 10.99% to 23.99%, with a maximum loan amount of up to ₹10 lakh and a tenure of up to 5 years.
ICICI Bank: Interest rates range from 10.8% to 16.15%, with a maximum loan amount of up to ₹50 lakh and a tenure of 1-6 years.
Detailed Information on Loans Against LIC Endowment Plans
LIC Bima Jyoti
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%), compounded on a half-yearly basis.
LIC Bima Ratna
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC’s Dhan Sanchay
Eligibility:
Under Regular/Limited premium payment: Premiums should be paid for at least two years.
Under Single Premium payment: The policy loan can be availed anytime after three months from the date of issuance or after the Free-look Period, whichever is later.
Maximum Loan Amount:
Regular/ Limited Premium Payment:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Single Premium Payment: Up to 75% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Jeevan Azad
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC New Endowment Plan
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC New Jeevan Anand
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Single Premium Endowment Plan
Eligibility: Completion of at least one policy year.
Maximum Loan Amount: Up to 90% of the Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Lakshay
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Labh
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Aadhaar Stambh
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Aadhaar Shila
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
Loan Against Whole Life Plans
LIC’s Jeevan Utsav
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
Before the beginning of the policy year in which the first Regular Income Benefits/ Flexi Income Benefit becomes due:
For in-force policies: Up to 75% of Surrender Value.
For paid-up policies: Up to 50% of Surrender Value.
After the beginning of the policy year in which the first Regular Income Benefits/ Flexi Income Benefit becomes due:
Loan amount is arrived in such a way that the effective annual interest component does not exceed 50% of the annual benefit.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Jeevan Umang
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
During the premium paying term:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
After the premium paying term:
Loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual survival benefit.
Interest Rate: Based on the method approved by IRDAI.
Loan Against Money Back Schemes
LIC Dhan Rekha
Eligibility:
Regular/Limited premium payment: Premiums should be paid for at least two years.
Single Premium Payment: Loan can be availed any time after three months from the policy issuance date or after the Free-look Period, whichever is later.
Maximum Loan Amount:
Regular/ Limited Premium Payment:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Single Premium Payment: Up to 75% of Surrender Value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC New Bima Bachat
Eligibility: Completion of at least one policy year.
Maximum Loan Amount: Up to 90% of the Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC New Money Back Plan – 20 Years
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC New Money Back Plan – 25 Years
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Umang
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
During the premium paying term:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
After the premium paying term:
Loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual survival benefit.
Interest Rate: Based on the method approved by IRDAI.
LIC New Children’s Money Back Plan
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Tarun
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Jeevan Shiromani
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
LIC Bima Shree
Eligibility: Premiums should be paid for at least two years.
Maximum Loan Amount:
For in-force policies: Up to 90% of Surrender Value.
For paid-up policies: Up to 80% of Surrender Value.
Interest Rate: Based on the method approved by IRDAI.
Loan Against Pension Plans
LIC Jeevan Dhara II
Eligibility:
Annuity Plans with return of premium options: Premiums should be paid for at least two years.
Return of Purchase Price Plans: Loan can be availed any time after three months from the policy issuance date or after the Free-look Period, whichever is later.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Saral Pension
Eligibility: Loan can be availed any time after six months from the policy commencement date. Under the joint life annuity option, the loan can be availed by the annuitant or the spouse.
Maximum Loan Amount: The loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual annuity amount payable.
Interest Rate: Up to (10-year G-Sec Rate + 2%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC Jeevan Akshay – VII
Eligibility: Loan can be availed under Immediate annuity for life with return of purchase price or Joint life immediate annuity for life with a provision for 100% annuity payable as long as one annuitant survives.
Maximum Loan Amount: Loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual annuity amount payable, subject to a maximum of 80% of the surrender value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
LIC’s New Jeevan Shanti
Eligibility: Loan can be availed any time after three months from the policy issuance date or after the Free-look Period, whichever is later. Under the joint life policy, the loan can be availed by the primary annuitant or the secondary annuitant.
Maximum Loan Amount: Loan amount is calculated so that the effective annual interest component does not exceed 50% of the annual annuity amount payable, subject to a maximum of 80% of the surrender value.
Interest Rate: Up to (10-year G-Sec Rate + 3%) or the yield earned on the Corporation’s Non-Linked fund plus 1%, whichever is higher.
How to Apply for a Loan Against LIC Policy
Policyholders can apply for a loan against their LIC policies online through LIC’s customer portal (https://ebiz.licindia.in/D2CPM/#Login). This portal is accessible only to premier service registered customers. Other LIC policyholders must visit LIC branch offices to apply for the loan.
Conclusion
Taking a loan against an LIC policy can be a strategic financial decision for policyholders needing funds while retaining their life insurance coverage. However, it’s crucial to weigh this option against other loan alternatives and carefully consider the interest rates and repayment terms. Comparing offers from various lenders, including banks that offer loans against securities, can help policyholders secure the best terms for their needs. By understanding the nuances of loans against LIC policies and exploring all available options, policyholders can make informed decisions that support their financial well-being.
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