How to Apply For Loan Against LIC Policy Online and Offline. Step-by-Step Guide

A loan can help in financial crises but sometimes it can cost more than what we thought. Loan against LIC policy is a secured loan which is a good way of getting personal loans. The policy is taken as a security of loan. In this article, we will learn the eligibility and application process of the loan.

Eligibility-

• The applicant's age should be at least 18 years old.
• A valid LIC policy
• LIC policy used against the loan should have guaranteed surrender value.
• LIC premiums of at least 3 years must be fully paid.

Features of Loan Against LIC Policy

• Rates of interest will be determined by the applicant's profile.
• Only holders of LIC endowment policies are eligible for the loan.
• The loan amount is an advance on the plan's surrender value.
• The surrender value of the LIC insurance determines the maximum borrowing amount. The amount is 90% of policy value.
• LIC holds the policy as a security which can be withhold in case applicant refuses to repay the loan
• LIC can terminate the policy if the loan debt is more than the surrender value of the policy.
• If the policy matures before the repayment of loan amount, the amount will be deducted from the maturity amount.

Necessary Documents Required

• Application form with two passport size photo.
• original policy
• Aadhaar cards, passports, voter ID cards, and other identification documents
• Residential proof- Aadhaar, a voter ID card, driver's licence,etc.
• Income proof- payslip and bank statement
• Other required documents

How to apply for Loan against LIC policy?

Offline Method

• Go to the nearest LIC office
• Fill out the application form
• Submit KYC documents with original policy document
• Details are verified and then loan upto 90% of the surrender value of the policy is granted.

Online Method

• Go to the website
• Select 'Online Loan.'
• Next click on 'Through Customer Portal' for an online LIC loan
• Log in through user id, DOB, and password to proceed to log in
• Select a policy against which loan is to be taken.
• Make a request for a loan.
• After that loan will be granted within 3-5 days

Documents related to the loan are mailed to the registered mail id.