Multiple banks. Different interest rates. Call it a "conflict of interest".
  • loading

    We found 31 Loan Against LIC Policy

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    11.49% - 15.99% Fixed
    0.5%
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Ad
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    10.99% - 14.49% Fixed
    0
    30L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Ad
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    10.99% - 19.8% Fixed
    Up to 2% One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.49% - 21.00% Fixed
    0 One time fee
    20L Max
    1-6 Years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    13.99% - 16.99% Fixed
    0 One time fee
    20L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Paperless Approval Option Available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    10.99% - 17.99% Fixed
    2.25% (min. ₹1499 + applicable tax) One time fee
    20L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    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.1,000 Amazon voucher free INSTANT DECISION
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    12% - 19% Fixed
    Up to ₹3000 One time fee
    25L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    10.70% - 11.70% 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
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    14% - 33% Fixed
    1.5% to 6.0% One time fee
    15L Max
    1-4 Years
    Response Time Within 30 minutes
    Paperless approval option available
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    11% - 16.49% Fixed
    Up to 2.5%
    15L Max
    1-5 years
    Response Time Within 30 minutes
    Rs.1,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    Customer Reviews
    11.75% - 13.75% Fixed
    1% One time fee
    30L Max
    1-5 Years
    Response Time Within 30 minutes
    Rs.1,000 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 77152 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    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.
    Personal Loan Offers

    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.

     Loading your search... Loading your search...
  • Loan Against LIC Policy Reviews

    • Standard Chartered Bank Personal Loan
      "Very good service"
      0.5 4.0/5 "Great!"
      The Standard charted bank offered me a best rate in regards to my personal loan with the lowest charges. The customer service and the response is average with SCB. They have disbursed the loan within 5 days of time, they made it within the promised time. The required loan amount has been disbursed and I am satisfied with the loan amount.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 25, 2017
    • HDFC Bank Personal Loan
      "Average Service"
      0.5 3.0/5 "Satisfactory"
      Basically I have got a text message from HDFC bank to get the personal loan with 11.99 % interest rate, but later when I approached them they have increased the rate of interest upto 12.99% , in case if we need a higher loan amount. The customer service and the response is very much average with HDFC bank. The Hdfc bank need to stick on to their promises.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 25, 2017
    • Citibank Personal Loan
      "Very good service"
      0.5 4.0/5 "Great!"
      I got the personal loan within 55 hours of time from Citibank. They have disbursed the loan after submitting my documents. The customer service and the response with CITIBANK is average. The required loan amount has been disbursed. The rate of interest is low when compared with others. I am satisfied with the Citibank service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 25, 2017
    • Standard Chartered Bank Personal Loan
      "Loan rejection"
      0.5 1.5/5 "Bad"
      My personal loan rejected due my resistant address in out of city but i am 7 years customer in SCB bank so pls make loan for out of city customers because this is my salary account so please arrange loan our of city customers otherwise bank is so good and the best think is working time 24*7 this so good.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "Nice"
      0.5 5.0/5 "Blown Away!"
      The response at Bankbazaar was good and I was contacted on time. The customer services was perfect as they explained all the details to me clearly and processed my information to the banks on time. There were follow up calls too and in all no hassles.
      Was this review helpful? 0
      , chilakaluripet
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "Satisfactory service"
      0.5 5.0/5 "Blown Away!"
      I know bank bazaar for past one year. I know about bank-bazaar through google web search. The customer service and the response is very good with bank bazaar. The website with bank-bazaar is easy to use and user friendly. I would like to say bank bazaar gives satisfactory service to the customers.
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on Jul 25, 2017
    • ICICI Bank Personal Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I haven't got the ICICI bank personal loan, because the executive asked to apply for the loan after 3 months, based on my profile I had a Cheque bounce in my previous product. The customer service and the response is very good with ICICI bank. The rate of interest is nominal with ICICI.
      Was this review helpful? 0
      , thiruvananthapuram
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "Very Good service"
      0.5 5.0/5 "Blown Away!"
      I got response well within the time frame from bank bazaar and the bank partner. The customer service and the response is really good with bank bazaar. I get to know about bank bazaar through a referral. I am with bank bazaar for past 2 months. The website of bank bazaar is easy to use and customer friendly. I am satisfied with bank bazaar with the service rendered by bankbazaar.com.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 25, 2017
    • Citibank Personal Loan
      "Rate of interest can be decreased in future"
      0.5 4.5/5 "Excellent!"
      I didn't have any kind of relationship with Citibank so far but I have applied personal loan with Citibank for the first time and I found that they were offering the loan with high rate of interest, so that was the reason I haven't got the loan with CITIBANK. The customer service and the response was good with Citibank.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "Excellent Service"
      0.5 4.0/5 "Great!"
      Through Advertisements I came to know about bank bazaar. The bank bazaar user interface is really good and bank bazaar website helps us to decide to get the financial products with the best rates in the market. The customer service and the response with bank bazaar is really good. The website with bank bazaar is easy to use and user friendly. I am satisfied with bank bazaar service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 25, 2017
    • ICICI Bank Personal Loan
      "Average Service"
      0.5 4.0/5 "Great!"
      ICICI bank personal loan was rejected but then they haven't revealed the reason why it got rejected. The customer service and the response need to be transparent in future with ICICI bank. The rate of interest is nominal with ICICI bank. I would say ICICI bank gave a average service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      The Response part is very good with bank bazaar , so that was the reason I gave top rating . I get to know about bank bazaar through a friend referral. I am with bank bazaar for past 5 months. The website with bank bazaar is easy to use and user friendly. I would say I am satisfied with bank bazaar service.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 25, 2017
    • ICICI Bank Personal Loan
      "Good service"
      0.5 4.0/5 "Great!"
      I haven't received the personal loan from ICICI bank, the ICICI executives has told that I have already held up with certain EMI with other products, so that was the reason I haven't got the personal loan with ICICI bank. The customer service and the response part is good with ICICI bank. The rate of interest is low when compared with others.
      Was this review helpful? 0
      , chennai
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      The customer service rendered by bank bazaar is very good. The way they approach their customers is really good. The explanation given by their executives was really good. I got to know about bank bazaar through google web search. The website of bank bazaar is easy to use and user friendly. In short, I would say bank bazaar offered me a satisfactory service.
      Was this review helpful? 0
      , thanjavur
      Reviewed on Jul 25, 2017
    • ICICI Bank Personal Loan
      "Excellent service"
      0.5 5.0/5 "Blown Away!"
      At the start when I approached ICICI bank there was no job stability and that was the prime reason why my personal loan application has been closed. The customer service and the response was good with ICICI bank. The rate of interest is nominal with ICICI bank. I would say ICICI bank offered me a satisfactory service.
      Was this review helpful? 0
      , thanjavur
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "Nice Service"
      0.5 4.5/5 "Excellent!"
      I had received proper followups and updates from bankbazaar. They provide a good financial service. Recently I sought their assistance in taking the personal loan. For the service, I got good response from them and they have good web portal to apply for the loan.
      Was this review helpful? 0
      , visakhapatnam
      Reviewed on Jul 25, 2017
    • ICICI Bank Personal Loan
      "Better Service"
      0.5 3.5/5 "Pretty good"
      Right from day one I had received a good response from ICICI bank on my personal loan request. ICICI was good in terms of customer service and responsiveness. I never faced any kind of issues with the bank but, I did not take the loan due to the personal issues.
      Was this review helpful? 0
      , visakhapatnam
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "Good Response"
      0.5 5.0/5 "Blown Away!"
      I have got a fairly good services from bankbazaar. They provided a good response on my loan application. I am happy with their way of response and their customer service. I found that the website is good to handle and it is very informative. In all, it is good enough.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 25, 2017
    • IndusInd Bank Personal Loan
      "Good Response"
      0.5 5.0/5 "Blown Away!"
      I preferred Indusind bank for the personal loan, hence I applied for the loan through third party online source. But I just postponed my plan so I did not take the loan. I had received good response and service from the bank for my loan application.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 25, 2017
    • Bank Bazaar Customer Support
      "its easy"
      0.5 4.0/5 "Great!"
      Nice, its very easy to get loan but intrest rates so high. But its OK. In emergency's nothing worried and burdening in banks. Simply applicable from home in just few SEC's.. Its very use full to me. But its good in iff other language provide( Hindi or Kannada). Good web site, good response, good service..
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 25, 2017
    Common Loader Icon
  • reTH65gcmBgCJ7k
    This Page is BLOCKED as it is using Iframes.