You can visit the website of LIC to take the loan. You can apply for the loan on this website. Fill the form through this link and enter the requested information. After filling the online form, download it.
Life Insurance Corporation (LIC) is India’s largest reputed insurance company, whose scope is spread from cities to villages. LIC offers many facilities to its policyholders, including a loan facility. That is, if you have a policy of LIC, then you can easily take a personal loan. Its interest rate is lower than that of government or private banks. The interest rate of LIC on personal loan starts from 9 percent. How much loan you will get on your LIC policy will depend on your income profile.
Compared to other banks, the personal loan of LIC is less. Currently, its interest rate starts from 9 percent and the loan tenure is 5 years. The loan amount depends on the surrender value of the policy and can be availed up to 90%. Suppose if the surrender value of your policy is Rs 5 lakh, then you can get a loan of up to 4.5 lakhs on it. Its biggest feature is that if you pay before the loan tenure, then the charge is zero. This means that if a creditor wants to repay the loan amount before the stipulated period, then he will not have to pay any separate charges. It is also called foreclosure charge.
Loan at 9% interest
The interest on the loan starts from 9 percent. However, what will be the interest rate on LIC personal loan will completely depend on the credit profile of the applicant. In this profile, the income of the creditor, the type of employment he does, what will be the loan amount and the repayment tenure of the loan will matter. The loan rate will depend on all these factors.
Interest can be deducted like this
The rate of interest on the loan is calculated using the flat rate or flat balance method. In this, interest is charged on the principal amount of the loan. On the other hand, reducing balance method is used in which interest is charged on the outstanding amount of the loan. In this method, as the creditor repays the loan amount, as his principal amount decreases, interest is accrued on the remaining loan amount. Suppose you took a loan of 5 lakhs and gradually repaid it and brought it to 2 lakhs, then interest will be charged on that 2 lakhs only. The person taking the loan gets the benefit from the reducing method.
How much will be the EMI
On this basis we can calculate EMI (LIC Personal Loan Interest Rate). If a person has taken a loan of Rs 1 lakh at the rate of 9% and the tenure is fixed for 1 year, then an EMI of Rs 8,745 will be applicable. If the loan is taken for a tenure of 2 years, then the EMI of Rs 4,568 will be there. There will be an EMI of Rs 3,180 on the loan for 3 years. If the loan is taken for a tenure of 4 years, then the EMI of Rs 2,489 will be there. If the loan is taken for 5 years, then there will be an EMI of 2,076.
Similarly, if you have taken a personal loan of 5 lakhs, then the EMI of Rs 44,191 will be on the loan of 1 year. The loan tenure of 2 years will have an EMI of 23,304. The EMI on the loan with tenure of 3 years will be Rs 18,472. EMI of Rs 15,000 for 4 years and Rs 12,917 on loan with tenure of 5 years.
How to take loan
You can visit the website of LIC to take the loan. You can apply for the loan on this website. Fill the form through this link and enter the requested information. After filling the online form, download it. Take a print out of this form and scan it after signing it and upload it on the LIC website. After doing this the loan application will be completed. After this, LIC will verify your application and start the loan issuance process. After the process is completed, the loan amount will be transferred online to your bank account.
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