How to Take loan Against LIC Policy? Know Full Process To Get Loan
All of us predictably save money to meet our daily needs. But sometimes some situations arise when we suddenly need more money. In such a situation, we take money from our friends, relatives etc. in the form of loan. However, if you have taken LIC policy, then for your information, let us tell you that apart from insurance plans, it also works for giving loans. Through which you can fulfill your financial needs.
The most important thing is that the interest rate in this is much lower than the loans from banks. In such a situation, the question arises, how to take a loan against LIC policy? Along with giving information about this, we are giving you complete information related to LIC Loan Interest Rate and necessary documents etc.
How to take loan against LIC policy:
Life Insurance Corporation of India ie LIC is the most reliable insurance company in India. LIC keeps on launching various types of ULIPs and Endowment policies from time to time for its customers. Even Life Insurance Corporation of India provides loan facility on the basis of its insurance scheme. This loan can be taken for expenses like travel, higher education, medical emergency, house construction or repair and medical emergency. This is a secured loan as compared to a bank, which is easily available to you.
The main reason for getting this easily is because in lieu of the loan, your insurance policy is pledged with LIC as security. After taking the loan, if he is unable to pay or repay the loan, then the loan amount is deducted at the time of policy maturity and the balance amount is paid.
How Much is Loan Against Policy:
Any policy holder can take 80 to 90 percent of his surrender value as loan. For your information, let us tell you that this loan can be availed only on guaranteed returns like Endowment Policy, Money-Back Plan, Whole Life etc. If you have taken a ULIP plan from LIC, then you cannot be given a loan against it. Apart from this, you can apply for this loan only when you have paid the premium for at least 3 years.
LIC Loan Interest Rate:
In comparison to loans available in various government and non-government banks, customers are charged interest at the rate of about 10.5% on taking loan from LIC policy. Apart from this, this loan is available very easily and in less time as compared to other loans. There is no need for your previous loan record to take a policy loan as LIC already has your policy as a guarantee.
Option to Not Pay Installment:
When any customer takes a loan from LIC Life Insurance Corporation of India on the basis of his policy, he gets the option to pay or not to pay the installment to return the loan amount. If you select the option to pay the installment, then you get the full amount back at the time of maturity of the policy. Apart from this, if you choose not to pay the installment after taking the loan, then the balance amount is returned to the customer after deducting the loan and interest amount at the time of maturity of the insurance policy.
Documents for taking loan against LIC policy:
To take a loan from LIC on the basis of your policy, you are required to submit some necessary documents, which are as follows-
- Aadhar Card of the Policy Holder
- Voter ID Card
- Driving License
- Income Certificate
- Bank Statement
- Apart from this, 1 canceled check of the account in which you want to get the loan amount will have to be deposited with LIC.
Eligibility For Loan To Take Loan Against LIC Policy
The eligibility for taking loan from LIC is as follows –
- Applicant’s age should not be less than 18 years.
- The applicant must have a valid policy.
- The applicant must have paid the premium of his LIC policy for at least 3 years.
How to Apply for LIC Loan:
You can apply for loan against LIC policy through both online and offline mode. Its process is as follows –
Online Application Process:
- To take a loan against LIC policy, you have to first go to the official website of LIC https://licindia.in.
- Now the home page will open in front of you, here you have to click on the option of Online Loan in Online Services.
- Now a new page will open in front of you, here you will see 3 options. Out of these, you have to click on Online Loan Request “Through Customer Portal” option.
- To take a loan against LIC policy, you have to register yourself on its official website, after that you have to log in to your account.
- Along with this you also have to register for “LIC Premier Services”.
- Now you have to download a form of “LIC Premier Services” and take a print out of it and put your signature in the form, while all other columns in the form will be pre-filled.
- After signing in the loan form, you have to scan the form and upload it on the website.
- After completion of registration, you have to click on submit. In this way you can apply for loan online.
Offline Application Process:
First of all you have to go to your nearest LIC office. After this you will have to get the form to take the loan. After this, you have to enter all the information in the form as well as attach the necessary documents and submit it to the LIC branch. Once your application details are verified, a loan of up to 90% of the surrender value of the policy is given.