Besides being one of the most sought out options, for life insurance for Indian citizens, Life Insurance Corporation policy allows you to get personal loans against it for meeting your immediate needs. A lot of people are not aware of this advantage because of the lack of publicity of this option from the LIC policy.

It is easier to get a loan against your LIC policy as they come at cheaper interest rates. However, they are only good for Personal Loan needs as there are restrictions in terms of the amount that can be borrowed even as a member of the policy.

Features & Benefits include :

• The loan against your LIC policy is an advance made against the cash value or surrender value of the policy.
• The advance is always less than the cash value.
• Most of the insurers approve 90% of the cash value of the policy.
• You have to pay the interest specified in the loan, which in the case of an LIC policy is generally 9%.
• If the individual fails to pay the interest by the due date, the amount will be added to the principle and the interest will be calculated again.



It’s flexibility of liquidity and access to cash when you need it, without selling off your securities. Here are some of the main eligibility criteria:

• Must be an Indian citizen or residing in India
• Should own an LIC policy
• Must have paid three years of complete premiums before applying for the loan.
• At least 18 years of age.
• The maximum loan amount available under the policy is 90% of the Surrender Value of the policy.
• In Case of paid-up policies, 85% of the surrender value and cash value of the bonus is the maximum that can be loaned in.



Required Document :

• Passport (not expired).
• Driving License (not expired).
• Voter's ID Card.
• Aadhaar Card issued by UIDAI.
• PAN (Permanent Account Number) Card (along with any of the above documents).