LIC LOAN AGAINST LIC POLICY

If a person has a policy in LIC, he can take loan from LIC itself. Loans against LIC policy is one of the good idea to get loans for cheaper price. Loan against LIC policy is a secured loan with low interest rates. Usually, the rate of interest will be 10% payable on a half yearly basis. The amount of loan you are eligible for depends on the surrender value of your policy. Your credit history doesn't matter to get a loan against your LIC insurance policy. So even if you have a bad credit history or a low credit score, you can still get the loan.

Process to apply for a loan against LIC policy

You need to complete a loan request form to apply for a loan against your LIC policy. To download loan request form click here. Once you get the loan request form, you need to fill it up and take your agent's signature on it. Then submit the duly filled form along with your original LIC policy bond document at your LIC policy branch office to process the loan. Once you apply for the loan your loan amount will be credited to your bank account on the 3rd working day from the date of application.

Things to consider before applying for a loan against LIC policy

 

You are eligible to get a loan against your LIC policy only after completion of 3 years, from the start date of your policy. 
You have to pay the interest amount for every 6 months. 
You need to surrender your original LIC policy bond. 
There is no strict rule to pay the principal amount. As long as you pay the interest amount on time, you don't need to pay the principal amount till you claim the policy value. In case of claiming the policy amount/end of maturity period, there is no need to worry. LIC will deduct your loan amount and give the rest of the amount to you or your family. 

Contact 91-9655228860

Calculating the loan

A loan is granted against a policy after premiums have been paid for at least 3 years. Loan amount is calculated according to the ratio of the actual number of premiums paid to the total premiums required to be paid. Bonus amount is added(in case of with profit policies) after the policy has run for 5 years. It is then multiplied with the surrender value factor which is worked out on the basis of time elapsed from the commencement of the policy to the date of calculation of the loan amount.

 Paid up value = (number of premium paid/number of total premium) * sum assured + bonus

 surrender value = paid up value * surrender value factor

 loan amount = 90% of surrender value

Loan projections

 (sum assured one lac, term 20 years, plan endowment)

 loan available at the end of          loan amount 

 5 years                                       17620 

 10 years                                     51120 

Loan enquiry

In cities where interactive voice system is operative, the loan enquiry is just a phone call away. The policyholder can get the loan quotation on lic's policy information system on telephone to know the loan amount or other policy details on phone. You may call up the numbers given below: 

Bombay	022-6187655
Delhi	011-3329700
chennai	044-8584141
bhopal	0755-220600
hyderabad	040-3231900
kanpur	0512-313811

Policies not eligible for loan:

Money back policy 

annuities 

children deferred assigned to minors

 married women's property act. 

To know the eligible loan amount of your policy please contact us. We welcome you. We make you arrange loan against LIC policy.