The Life Insurance Corporation of India is the insurance corporation owned by the Government of India. The organization offers policies to provide insurance to the policyholder for any mishappening such as death or illness. Do you know? That you can avail the personal loan against your LIC policy. The Individual can get a loan against LIC policy up to 90% of the surrender value.
How to get a loan against LIC policy? The complete details related to the same along with Eligibility, Interest Rate, and other details have been provided below. Have a glance.
Details Of Loan Against LIC Policy
|LIC Policy Loan||Details|
|Rate Of Interest||10-12 percent|
|Surrender Value||Up to 90 percent|
|Minimum Tenure||06 months|
|Security/ collateral||Original LIC policy documents|
|Repayment Options||According to the rules|
Features Of Loan Against LIC Policy
- Any individuals, HUF, sole proprietorships, partnership firm, and corporations are eligible for the scheme of taking a loan against a life insurance policy.
- The lender will give the loan up to 70 percent to 90 percent of the policy’s surrender value.
- You can apply online for the loan for the said scheme.
- To avail the loan borrower, have to submit all the documents related to the LIC policy.
- The borrower can track the status of the application in both online and offline mode.
Eligibility To Get Loan Against LIC Policy
- The person should have a LIC insurance policy on his/her name.
- The Insurance policy should not be a term insurance policy (TIP) or a unit-linked insurance plan (ULIP).
- The policy presented for a loan must have a surrender value.
- The individuals apply for the loan against LIC policy must be a citizen of India.
Documents Required to Borrow a Loan against a LIC Policy
- The certificate/ document of the LIC policy (Must be original)
- Identity proof
- Residence Proof
- Income Proof
- Deed of assignment
Process To Get Loan Against LIC Policy?
- First of all, you have to go to the nearest branch of the bank.
- Now take the application form for the loan and fill it as per the rules.
- After filling the application form and submit the same with the bank officials with all the required documents.
- If you already have the account in such a bank then you require to submit the minimal documents.
- Now the bank officials will verify the documents and approve your application if you are eligible.
- After the final approval of the loan, then the amount of the loan will be transferred to your bank account.
What is The Interest Rate For LIC Policy Loan?
Generally, the rate of interest is between 10% and 12% p.a. Moreover, the interest rate may vary as per the terms and conditions of the bank.