LIC Loan: Life Insurance Corporation of India (LIC) gives loan against its policy. And the biggest thing is that this loan is easily available and at a low interest rate. Know about it in detail.
New Delhi: Many people have lost their jobs during the Corona period. In such a situation, anyone may need funds. But getting a loan without a job is also difficult. But you will be very happy to know that Life Insurance Corporation of India (LIC) gives loan against its policy. And the biggest thing is that this loan is easily available and at a low interest rate.
It is a secured loan
Life Insurance Corporation of India (LIC) gives personal loan against its insurance policy. This loan can be taken for expenses like travel, higher education, medical emergency, wedding, home repairs etc. This is a secured loan against the policy. In this, your insurance policy is kept as security. If one is unable to pay back the loan, LIC can compensate it from the maturity of the insurance policy or the claim amount.
Can pay till maturity period
The minimum tenure for taking a loan from Life Insurance Corporation of India (LIC) is 6 months, but it can also be repaid till the entire maturity period. Along with this, there is also a facility in LIC loan that you just keep paying the interest and get the principal amount deducted from the maturity amount later. It is available only on endowment plans, income plans and unit linked plans that have a surrender value. Keep in mind that this is not available on term plans.
Loan interest rate
The interest rate on taking a loan from Life Insurance Corporation of India (LIC) is very low. Right now LIC is charging 10.5 percent interest for this, which is cheaper than other banks or institutions available in the market. Now you must be thinking that how much will you get the loan. LIC gives loans up to 90% of the surrender value of the policy. In case of some paid-up plans, this limit can be up to 85% of the policy surrender value. In both the cases the surrender value is used as security.
Policy document is mandatory
To take a loan from LIC, you need Aadhar Card, Voter ID Card, Passport and Aadhar Card as Residential Proof, Voter ID Card, Driving License, Utility Bill as Income Proof Salary Slip, Bank Statement. may fall. There should also be a canceled check of the account in which the loan is to be availed.
Conditions for Loan Against LIC Policy
Certain conditions are also kept for loan against LIC policy. For example, the minimum age of the applicant should be 18 years. Applicant should have a valid LIC policy. The LIC policy used for the loan must have guaranteed surrender value i.e. this facility is not available on term policies. LIC premium must be paid in full for at least 3 years.
Apply online or offline
You can apply for loan against LIC policy through online or offline mode. You visit the LIC office and fill the loan application form along with applicable KYC documents and submit along with the original policy document. If you have registered for LIC e-services, you can login to your online account.
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