Apply for a loan against LIC policy

Life Insurance Corporation of India (LIC) is a government entity that provides life insurance services across the country. Most people know LIC for insurance products, but few are aware that you can also avail loan against your policy from LIC.

loan against LIC policy


To avail of the loan, you need to submit your policy certificate along with the application form. Up to 90% of the policy amount can be availed as a loan and the interest rate varies between 10-12%. Due to the low rate of interest as compared to availing a personal loan from any bank or NBFC, loan against the policy from LIC is much more affordable. Besides, you can use the borrowed money for any purpose.

Further, there is no CIBIL required to avail this loan, and the minimum tenure is 6 months. Some of the advantages of a loan against LIC policy are:

a) Instant approval of the loan.
b) No CIBIL score is required. You only need to surrender the policy for availing a loan against it.
c) You can avail up to 90% of the total assured sum.
d) The rate of interest ranges between 10-12%, which is much lower than the personal loan interest rate from banks and NBFCs.
e) Minimum documentation is required like Identity proof, Address proof, Policy certificate.


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