Multiple banks. Different interest rates. Call it a "conflict of interest".
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    Loan Against LIC Policy

    We found 32 Loan Against LIC Policy

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    10.99% - 15.99% Fixed
    1% to 2.5%
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Ad
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    Customer Reviews
    10.99% - 14.49% Fixed
    0
    30L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Ad
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    Perks
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    Fees & Charges
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    Eligibility Criteria
    Customer Reviews
    12% - 18% Fixed
    Up to 1.5% One time fee
    15L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Ad INSTANT DECISION
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    Customer Reviews
    11.99% - 19.50% Fixed
    0 One time fee
    20L Max
    1-6 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
    What you'll love
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    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    13.99% - 16.99% Fixed
    1% - 2% One time fee
    20L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless Approval Option Available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    11.59% - 18.49% Fixed
    2.25% (min. ₹1149) One time fee
    20L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
    What you'll love
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    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    10.85% - 11.85% Floating
    0.5% One time fee
    50 K - 10 L
    1-5 Years
    Response Time Within 30 minutes
    Guarantor Required Paperless approval option available
    What you'll love
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    Fees & Charges
    Good to Know
    Eligibility Criteria
    10.99% - 19.8% Fixed
    Up to 2.5% One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.99% - 19% Fixed
    Up to ₹3000 One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    17.25% - 37% Fixed
    1.5% to 6.0% One time fee
    15L Max
    1-4 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    11.49% - 20.15% Fixed
    Up to 2%
    15L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.5% - 13.25% Fixed
    0 One time fee
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria

    Loan Against LIC Policy is Rated as "Great!" by 73694 Users

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    Personal Loan BYTES FROM OUR KITCHEN

    How to get Loan on your LIC Insurance Policy

    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 loans 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. Note that for submission of loans only the endowment policies are applicable.

    How much can be Borrowed on your LIC Policy?

    The Cash Value is the term that needs to be noted, which is also known as the Surrender Value of the policy as well. Prior to applying for the loan it is essential to know the exact cash value of your policy as, in the case that it is very less it is useless applying for the personal finance option unless it is a huge amount.

    Perfect Personal Loan Deals for you

    The Surrender or Cash Value

    The cash or surrender value is basically the amount payable to the policyholder in the case he or she decides to discontinue the policy and encash the same from LIC. This amount is only payable after three full years premiums have been paid to their LIC policy. Also, in case it is a participating policy, the Bonus amount is automatically attached to the amount as per rules of LIC. The surrendering of an LIC is not a good idea considering that the value is always considerably low. However, it means that the loans that you can avail against this amount from LIC will also always be comparatively low.

    Eligibility Criteria for Availing the Loan against your LIC Policy

    Here are some of the main eligibility criteria’s, if you wish to avail a loan against LIC policy:

    • He or she must be an Indian citizen or residing in India.
    • He or she should own an LIC policy.
    • The applicant also must have paid three years of complete premiums before applying for the loan.
    • He or she should be 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 bonus is the maximum that can be loaned in.

    What is The Rate of Interest Applicable for Availing a Loan against LIC Policy?

    Loan against LIC Policy

    The rate of the interest applicable on the loan is 9% and the minimum period loan is given if for 6 months.

    Features and Benefits of Loan on LIC Policy

    The following are the features, including the benefits of availing a loan against your LIC policy:

    • 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 case value.
    • Most of the insurers approve 90% of the cash value of the policy.
    • In case a loan is given, the policy is absolutely assigned and held by Life Insurance Corporation of India as security for repayment of the loan.
    • 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.
    • If the total amount of debt is more than the surrender value, LIC takes the leverage of terminating the policy.
    • If the policy matures prior completion of loan repayment, LIC also has the rights to deduct the loan amount from the maturity amount.

    Alternatives of Personal Finance besides Loan against LIC Policy

    There are other options for availing personal finance, other than loan against your LIC policy:

    1. Independent personal loans from banks and financial institutions, with higher rate of interest but more features, lesser restrictions of loan amount and more benefits.
    2. Personal Loan against Credit Card, which are more viable as an option in terms of lower interest rates and the repayment can be made through the monthly credit card bill cycle through EMIs. Again lesser restrictions.
    3. Other Life insurance providers also offer loan against their life insurance products although it is suggested not to take a loan against a ULIP as it has some risk factors involved.

    Loans against LIC Policy FAQs

    What is the amount of loan one can avail against an LIC Policy?

    The amount of loan sanctioned can be only till a maximum of 90% of the policys surrender value. The surrender value is achieved after payment of 3 years of premium in full, so the loan can be availed only after that.

    What is the minimum time within which the loan can be repaid?

    The minimum time allowed for repayment is six months. Even if the principal is settled off within two or three months, the interest for the period of six months will have to be paid.

    What if the policy matures or is claimed within the loan repayment period?

    In case the policy matures or is claimed within the repayment period, interest will be charged only till the maturity or claim date, appropriate principal and interest will be deducted and the balance will be paid out to the policyholder or the nominee, as the case may be.

    Can multiple loans be taken against a single LIC Policy?

    Yes, even if the interest on the first loan hasnt been paid, a second loan can be allowed from LIC, provided the policy is of an increasing cover type that increases annually. No reason needs to be offered for this loan as well.

    What is the rate of interest and how frequently is it calculated?

    The current rate of interest (as of December 2015) is 10% per annum which is the lowest that one can get in the market as far as personal loans are concerned. The interest is calculated semi-annually, so twice in a year.

    What is repayment structure or EMI scheme?

    There is no particular EMI structure and the principal can be paid in as less or as more amounts as possible. Lessening principal will effectively lessen the interest amount that needs to be paid.

    Can this facility be availed online?

    No, as of yet, the facility can be availed only by physically visiting the branch where one has availed the policy and the loan from. Repayments also have to be done through physical visits.

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  • Loan Against LIC Policy Reviews

    • Bank Bazaar Customer Support
      "Easy to accesss"
      0.5 4.0/5 "Great!"
      Bankbazaar.com is good and its satisfactory too, also I got the call from them immediately. They are prompt in service towards the customer and am using it from the last one year of time. Website of the Bankbazaar.com is easy to access.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 23, 2017
    • Bank Bazaar Customer Support
      "User friendly"
      0.5 4.0/5 "Great!"
      When customers are reaching bankbazaar.com for any kind of financial product, the bank bazaar really helps the customers and supports the customers to get product with the different bank partner. It would be great if the bank partners also gives service like bank bazaar. Bank bazaar web portal is easy to use and I can say it user friendly.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 23, 2017
    • Bank Bazaar Customer Support
      "Overall good"
      0.5 4.0/5 "Great!"
      Overall , Bankbazaar.com have provided the good experience and am using it from the last one month of time. I came to know about Bankbazaar.com through internet. I would like to say that the website of the Bankbazaar.com is easy to access.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 23, 2017
    • Bank Bazaar Customer Support
      "Good in Response"
      0.5 4.5/5 "Excellent!"
      I received very good response from bankbazaar. Website is good to access and I am using bankbazaar app which is very much useful to get to know about the financial products. I frequently use the app to check the loan details. They are playing good role in the financial world.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 23, 2017
    • Citibank Personal Loan
      "Need to focused a lot on improvement"
      0.5 1.0/5 "Really Bad"
      CITIBANK, while explaining the personal loan, they explained in a processed way and told less interest rate, and after that while processing the loan the have increased the interest rate, which need to be changed with Citibank. They need to be improve lot of things, while communicating with the customers. Citibank executives and the higher officials need to be trained in the processed way to communicate with their customers.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 23, 2017
    • Tata capital Personal Loan
      "Good"
      0.5 4.0/5 "Great!"
      I have not got the personal loan with the Tata capital limited because of some documentation reason. They have asked me to provide six cheque leaf to process the application but I was lacking with that, then I have asked them to cancel the application.
      Was this review helpful? 0
      , hyderabad
      Reviewed on May 23, 2017
    • HDFC Bank Personal Loan
      "Good Bank"
      0.5 4.0/5 "Great!"
      When I applied for a personal loan with HDFC bank, my credit score is not been updated so I could not able to avail the loan. I am waiting for a month, after which I will apply for the loan again. Everything was good with HDFC like their responsiveness and their customer service too.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 23, 2017
    • Bank Bazaar Customer Support
      "Average"
      0.5 3.5/5 "Pretty good"
      It would have been better if the response was more sooner from Bankbazaar.com, and most of all the terms and conditions on the portal could be updates with that of the banks. Else I had no hassles and the process of follow up calls was good and on time.
      Was this review helpful? 0
      , hosur
      Reviewed on May 23, 2017
    • ICICI Bank Personal Loan
      "Could be more flexible for corporate customers"
      0.5 3.0/5 "Satisfactory"
      The response was a bit delayed from ICICI Bank after I had applied for a personal loan. I could not proceed for the loan is because of the salary criteria. The bank had a condition of 20K as a take home. The rate of interest and the processing charges was pleasing to me.
      Was this review helpful? 0
      , hosur
      Reviewed on May 23, 2017
    • Bank Bazaar Customer Support
      "Good"
      0.5 4.0/5 "Great!"
      I got the call from the Bankbazaar.com in the same day itself from the day of my inquiry. Customer service is good with the Bankbazaar.com and they have connected me with the bankers for my financial inquiries. I have not faced any hassles with them till now.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 23, 2017
    • Citibank Personal Loan
      "Excellent deal on the ROI"
      0.5 3.5/5 "Pretty good"
      Since I am a corporate customer, Citibank did not have much of a documentation for the personal loan. The process was quick and smooth. The deal on the interest rate was good as I got a rate of 10.99% which was the lowest when compared to other banks. The processing charges was minimal.
      Was this review helpful? 0
      , gurgaon
      Reviewed on May 23, 2017
    • HDFC Bank Personal Loan
      "Satisfied"
      0.5 4.0/5 "Great!"
      There was no necessity to get the personal loan on that time because I had sorted out the reason for the personal loan. Rate of interest was around 11.99% for the personal loan with the HDFC bank and the customer services are always good and the response is very good too.
      Was this review helpful? 0
      , bangalore
      Reviewed on May 23, 2017
    • Bank Bazaar Customer Support
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I got proper information from bankbazaar for the loan process. I did not find any hassles with bankbazaar at any point of time. They are good in followups and they promptly provided updates on the status of the application at regular intervals.
      Was this review helpful? 0
      , kanchipuram
      Reviewed on May 23, 2017
    • HDFC Bank Personal Loan
      "Good Bank"
      0.5 5.0/5 "Blown Away!"
      Interest rate for the personal loan is 11.29% with HDFC bank. They done with the process in five days. The processing fee for the loan is around 999. I am very much happy with HDFC bank for the loan. The customer service of HDFC bank is really a standard one.
      Was this review helpful? 0
      , kanchipuram
      Reviewed on May 23, 2017
    • ICICI Bank Personal Loan
      "High Interest Rate"
      0.5 3.0/5 "Satisfactory"
      Interest rate is on higher end with ICICI bank for the personal loan. Processing fee is also high with them. But the customer service is too good and it is approachable. As the charges are high with ICICI bank I moved to HDFC bank where I got low interest rate for personal loan.
      Was this review helpful? 0
      , kanchipuram
      Reviewed on May 23, 2017
    • Bank Bazaar Customer Support
      "Excellent services"
      0.5 5.0/5 "Blown Away!"
      There were no hassles at Bankbazaar and I am happy with the overall experience. The team was prompt in contacting me and I also like the way the process was handled with the follow up calls. The website was excellent and the best to visit before taking a loan.
      Was this review helpful? 0
      , gurgaon
      Reviewed on May 23, 2017
    • Standard Chartered Bank Personal Loan
      "High on ROI"
      0.5 4.0/5 "Great!"
      Since I did not require the funds, I went ahead and cancelled my personal loan request at Standard Chartered bank. The bank was on time in contacting me and giving me details. The rate of interest was high, it was around 12.99% where as there are banks offering me 10.99%.
      Was this review helpful? 0
      , gurgaon
      Reviewed on May 23, 2017
    • Bank Bazaar Customer Support
      "Good"
      0.5 4.0/5 "Great!"
      Bankbazaar.com is good and they have contacted me immediately after I have done up with my inquiry. I am using Bankbazaar.com from the last one year of time and I like the response with them and the customer service is good too.
      Was this review helpful? 0
      , silchar
      Reviewed on May 23, 2017
    • HDFC Bank Personal Loan
      "Need to improve"
      0.5 2.0/5 "Expected more"
      From HDFC bank bank, nobody have contacted me for the personal loan and I have seen the interest rate as 14% for the personal loan, also am okay with that. I would like to suggest that they need to contact the customers, if they are interested in the products.
      Was this review helpful? 0
      , silchar
      Reviewed on May 23, 2017
    • Bank Bazaar Customer Support
      "Need some improvement"
      0.5 2.5/5 "Just OK"
      I am using Bankbazaar.com from the last two months of time and the website is easy to access. I have got the call from the Bankbazaar.com within two to three hours of time from the time of inquity, also i would like to recommend Bankbazaar.com to my friends.
      Was this review helpful? 0
      , mumbai
      Reviewed on May 23, 2017
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