{"id":295711,"date":"2024-12-26T05:18:29","date_gmt":"2024-12-26T05:18:29","guid":{"rendered":"https:\/\/www.paymeindia.in\/blog\/?p=295711"},"modified":"2025-01-29T10:41:24","modified_gmt":"2025-01-29T10:41:24","slug":"loan-against-lic-policy","status":"publish","type":"post","link":"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/","title":{"rendered":"Loan Against LIC Policy"},"content":{"rendered":"<p>A loan against an LIC policy provides a viable financial solution for policyholders seeking to access funds without liquidating their investments. This secured loan option allows individuals to borrow against the surrender value of their life insurance corporation (LIC) policy, typically offering competitive interest rates between 8.50% and 10.50%. With minimal documentation requirements and no credit score checks, eligible policyholders can quickly secure funds for financial needs while maintaining their policy benefits.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#what-is-a-loan-against-lic-policy\" >What is a Loan Against LIC Policy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#features-and-benefits-of-loan-against-lic-policy\" >Features and Benefits of Loan Against LIC Policy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#features-of-loan-against-lic-policy\" >Features of Loan Against LIC Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#benefits-of-loan-against-lic-policy\" >Benefits of Loan Against LIC Policy<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#loan-eligibility-criteria-for-lic-policy-loans\" >Loan Eligibility Criteria for LIC Policy Loans<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#lic-loan-eligibility\" >LIC Loan Eligibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#policies-eligible-for-loan\" >Policies Eligible for Loan<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#documents-required-for-loan-against-lic-policy\" >Documents Required for Loan Against LIC Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#loan-interest-rates-against-lic-policy\" >Loan Interest Rates Against LIC Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#step-by-step-guide-to-getting-a-loan-against-lic-policy\" >Step-by-Step Guide to Getting a Loan Against LIC Policy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#online-process-to-apply-for-loan-against-lic-policy\" >Online Process to Apply for Loan Against LIC Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#offline-process-to-apply-for-lic-loans\" >Offline Process to Apply for LIC Loans<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#lic-loan-interest-rate-and-payment-options-new-section\" >LIC Loan Interest Rate and Payment Options (New Section)<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#general-interest-rates\" >General Interest Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#specific-loan-types-and-their-interest-rates\" >Specific Loan Types and Their Interest Rates<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#how-interest-is-calculated\" >How Interest is Calculated<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#how-to-repay-lic-loan-and-pay-interest-online\" >How to Repay LIC Loan and Pay Interest Online?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#different-repayment-options-available-for-policyholders\" >Different Repayment Options Available for Policyholders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#detailed-steps-for-online-payments-through-lic-portal\" >Detailed Steps for Online Payments Through LIC Portal<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#types-of-lic-policies-eligible-for-loan-against-lic-policy\" >Types of LIC Policies Eligible for Loan Against LIC Policy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#loan-against-lic-endowment-policies\" >Loan Against LIC Endowment Policies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#loan-against-lic-whole-life-policies\" >Loan Against LIC Whole Life Policies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#loan-against-lic-money-back-policies\" >Loan Against LIC Money Back Policies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#whole-life-policies\" >Whole Life Policies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#pensionsavings-plans\" >Pension\/Savings Plans<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#what-loan-amount-can-you-borrow-against-lic-policy\" >What Loan Amount Can You Borrow Against LIC Policy?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#advantages-of-taking-loan-against-lic-policy-over-personal-loans\" >Advantages of Taking Loan Against LIC Policy Over Personal Loans<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#alternatives-to-loan-against-lic-policy\" >Alternatives to Loan Against LIC Policy<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#lic-policy-loan-vs-personal-loan\" >LIC Policy Loan vs Personal Loan:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#gold-loans-and-other-secured-loans\" >Gold Loans and Other Secured Loans<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.paymeindia.in\/blog\/loan-against-lic-policy\/#faqs-on-loan-against-lic-policy-new-section\" >FAQs on Loan Against LIC Policy (New Section)<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what-is-a-loan-against-lic-policy\"><\/span><strong>What is a Loan Against LIC Policy?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A loan against an LIC policy is a financial option that allows policyholders to borrow money by using their LIC insurance policy as collateral. This type of loan is secured against the surrender value of the policy, enabling individuals to access funds without liquidating their investments. The LIC policy loan typically offers competitive interest rates and flexible repayment terms, making it an attractive choice for urgent financial needs. Unlike a traditional LIC personal loan, it does not require extensive documentation or a credit score check.<\/p>\n<p><a href=\"https:\/\/web.paymeindia.in\/?utm_source=blog+website&#038;utm_medium=blog+content&#038;utm_campaign=personal+loan\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"179017\" data-permalink=\"https:\/\/www.paymeindia.in\/blog\/mistakes-that-can-lower-your-credit-score\/few-clicks-1\/\" data-orig-file=\"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2024\/05\/few-clicks-1.png?fit=3032%2C264&amp;ssl=1\" data-orig-size=\"3032,264\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"few clicks 1\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2024\/05\/few-clicks-1.png?fit=1024%2C89&amp;ssl=1\" class=\"alignnone wp-image-179017 size-full\" src=\"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2025\/01\/apply-loan-upto-%E2%82%B95-lakhs-scaled.jpg?resize=1290%2C112&#038;ssl=1\" alt=\"Apply personal loan upto \u20b95 lakhs\" width=\"1290\" height=\"112\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"features-and-benefits-of-loan-against-lic-policy\"><\/span><strong>Features and Benefits of Loan Against LIC Policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Taking a loan against your LIC policy comes with several features and benefits that make it an attractive option for policyholders. Below are the key features and benefits associated with loans against LIC policies.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"features-of-loan-against-lic-policy\"><\/span><strong>Features of Loan Against LIC Policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong> Loan Amount<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">You can borrow up to 90% of the surrender value of your LIC policy. The exact amount will depend on the type of policy and its current surrender value.<\/p>\n<ol start=\"2\">\n<li><strong> Interest Rates<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">The LIC loan interest rates are competitive, typically ranging from 8.50% to 10.50% per annum. The interest is calculated on a reducing balance basis, meaning you only pay interest on the outstanding principal.<\/p>\n<ol start=\"3\">\n<li><strong> Repayment Options<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">The repayment tenure for loans against LIC policies usually ranges from 1 to 5 years. Borrowers can choose flexible repayment options, including monthly EMIs, to suit their financial situation.<\/p>\n<ol start=\"4\">\n<li><strong> No Need for Credit Score<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">One of the significant advantages is that there is generally no credit score requirement for obtaining a loan against your LIC policy. This makes it accessible for individuals who may have a low credit score.<\/p>\n<ol start=\"5\">\n<li><strong> Quick Disbursement<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Loans against LIC policies are known for their quick disbursement process. Once the application is approved, the funds can be disbursed within a short period, often within a few days.<\/p>\n<p><strong>Also, read: <\/strong><a href=\"https:\/\/www.paymeindia.in\/personal-loan-for-women\/\">How to Get Pre-Approved for a Personal Loan<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"benefits-of-loan-against-lic-policy\"><\/span><strong>Benefits of Loan Against LIC Policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong> Easy Access to Funds<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Policyholders can access funds quickly without the need for extensive documentation or lengthy approval processes.<\/p>\n<ol start=\"2\">\n<li><strong> No Impact on Policy Benefits<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Taking a loan against your policy does not affect the insurance coverage. The policy remains active, and the death benefit will still be payable to the nominee.<\/p>\n<ol start=\"3\">\n<li><strong> Flexible Use of Funds<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">The loan amount can be used for various purposes, such as medical emergencies, education expenses, home renovations, or any other financial needs.<\/p>\n<ol start=\"4\">\n<li><strong> Tax Benefits<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">The interest paid on the loan may be eligible for tax deductions under certain conditions, making it a financially savvy option.<\/p>\n<ol start=\"5\">\n<li><strong> Zero Prepayment Penalties<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">LIC usually allows borrowers to repay their loans ahead of schedule without imposing any prepayment penalties, enabling them to settle their debts early without extra charges.<\/p>\n<p><a href=\"https:\/\/web.paymeindia.in\/?utm_source=blog+website&#038;utm_medium=blog+content&#038;utm_campaign=personal+loan\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"179017\" data-permalink=\"https:\/\/www.paymeindia.in\/blog\/mistakes-that-can-lower-your-credit-score\/few-clicks-1\/\" data-orig-file=\"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2024\/05\/few-clicks-1.png?fit=3032%2C264&amp;ssl=1\" data-orig-size=\"3032,264\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"few clicks 1\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2024\/05\/few-clicks-1.png?fit=1024%2C89&amp;ssl=1\" class=\"alignnone wp-image-179017 size-full\" src=\"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2025\/01\/apply-loan-upto-%E2%82%B95-lakhs-scaled.jpg?resize=1290%2C112&#038;ssl=1\" alt=\"Apply personal loan upto \u20b95 lakhs\" width=\"1290\" height=\"112\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"loan-eligibility-criteria-for-lic-policy-loans\"><\/span><strong>Loan Eligibility Criteria for LIC Policy Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"padding-left: 40px;\">When considering a loan against your LIC policy, it\u2019s important to understand the eligibility criteria that policyholders must meet. Below are the key requirements and the types of policies that are eligible for loans:<\/p>\n<h4 style=\"padding-left: 40px;\"><span class=\"ez-toc-section\" id=\"lic-loan-eligibility\"><\/span><strong>LIC Loan Eligibility<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The applicant must be the policyholder of the LIC policy against which the loan is being sought.<\/li>\n<li>The policy should have completed a minimum term, typically 3 years or more, to be eligible for a loan.<\/li>\n<li>The policy must have a surrender value, which is the amount available for withdrawal. Generally, you can borrow up to 90% of the surrender value of the policy.<\/li>\n<li>The policyholder typically needs to be at least 18 years old at the time of application.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h4 style=\"padding-left: 40px;\"><span class=\"ez-toc-section\" id=\"policies-eligible-for-loan\"><\/span><strong>Policies Eligible for Loan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol>\n<li><strong> Endowment Policies<\/strong><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 80px;\">Loans can be taken against endowment policies, which provide a combination of insurance and savings.<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol start=\"2\">\n<li><strong> Whole Life Policies<\/strong><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 80px;\">Whole-life policies, which offer coverage for the lifetime of the insured, are also eligible for loans.<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol start=\"3\">\n<li><strong> Money-Back Policies<\/strong><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 80px;\">Money-back policies that provide periodic payouts during the policy term can be used as collateral for loans.<\/p>\n<ol>\n<li style=\"list-style-type: none;\">\n<ol start=\"4\">\n<li><strong> Term Insurance Policies<\/strong><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<p style=\"padding-left: 80px;\">Generally, term insurance policies do not have a surrender value and are not eligible for loans.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"documents-required-for-loan-against-lic-policy\"><\/span><strong>Documents Required for Loan Against LIC Policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When applying for a loan against your LIC policy, you will need to provide specific documents to facilitate the application process. Below is a list of the essential documents required for the loan application:<\/p>\n<ol>\n<li><strong> LIC Policy Details<\/strong><\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Original LIC policy document.<\/li>\n<li>Photocopy of the policy document.<\/li>\n<li>Surrender value statement (if applicable).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"2\">\n<li><strong> Identity Proof<\/strong><\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>A government-issued photo ID, such as:<\/li>\n<li>Aadhar card<\/li>\n<li>Passport<\/li>\n<li>Voter ID<\/li>\n<li>Driver&#8217;s license<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"3\">\n<li><strong> Proof of Address<\/strong><\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Recent utility bill (electricity, water, gas)<\/li>\n<li>Bank statement<\/li>\n<li>Rental agreement<\/li>\n<li>Government-issued address proof<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"4\">\n<li><strong> 2-3 recent passport-sized photographs.<\/strong><\/li>\n<li><strong> Income Proof (if applicable):<\/strong><\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Salary slips for the last 3 months.<\/li>\n<li>Bank statements for the last 6 months.<\/li>\n<li>Income tax returns (ITR) for the last financial year.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"6\">\n<li><strong> KYC Documents:<\/strong><\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>PAN card<\/li>\n<li>Any other relevant identification documents as specified by LIC.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"loan-interest-rates-against-lic-policy\"><\/span><strong>Loan Interest Rates Against LIC Policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The interest rates for loans against LIC policies typically range from 8.50% to 10.50% per annum, depending on various factors such as the type of policy, the amount of loan, and the tenure.<\/p>\n<ol>\n<li><strong> Loan Tenure<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">The repayment tenure for loans against LIC policies can vary, but it typically ranges from 1 year to 5 years. The exact tenure may depend on the policy and the amount borrowed.<\/p>\n<ol start=\"2\">\n<li><strong> EMI Payments<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Borrowers are required to repay the loan in Equated Monthly Installments (EMIs). The EMI amount will depend on the loan amount, interest rate, and tenure. It\u2019s advisable to use an EMI calculator to estimate your monthly payments based on the loan amount and interest rate.<\/p>\n<ol start=\"3\">\n<li><strong> Prepayment and Foreclosure<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">LIC allows prepayment of loans, which can help reduce the overall interest burden. However, it\u2019s essential to check if any foreclosure charges apply. Generally, LIC does not charge foreclosure fees, making it easier for borrowers to pay off their loans early.<\/p>\n<p><strong>Also, read:<\/strong> <a href=\"https:\/\/www.paymeindia.in\/blog\/personal-loan-preclosure-procedure\/\">Personal Loan Preclosure Procedure<\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"step-by-step-guide-to-getting-a-loan-against-lic-policy\"><\/span><strong>Step-by-Step Guide to Getting a Loan Against LIC Policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Individuals can get a step-by-step guide to learn about the online and offline process to get a loan against the policy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"online-process-to-apply-for-loan-against-lic-policy\"><\/span><strong>Online Process to Apply for Loan Against LIC Policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p style=\"padding-left: 40px;\"><strong>Step 1: <\/strong>Go to the official LIC website,<a href=\"http:\/\/www.licindia.in\"> www.licindia.in<\/a> or download the LIC Mobile App from the Google Play Store or Apple App Store.<\/p>\n<p style=\"padding-left: 40px;\"><strong>Step 2:<\/strong> Login to Your Account:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Website:<\/li>\n<li>Click on the &#8220;Customer Portal&#8221; or &#8220;Login&#8221; option.<\/li>\n<li>Enter your User ID and Password. If you don\u2019t have an account, you may need to register first.<\/li>\n<li>App:<\/li>\n<li>Open the app and tap on the &#8220;Login&#8221; option.<\/li>\n<li>Enter your credentials to access your account.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong>Step 3:<\/strong> Navigate to the Loan Application Section:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Once logged in, look for the &#8220;Loan&#8221; or &#8220;Loan Application&#8221; section in the menu.<\/li>\n<li>Select the option to apply for a loan against your policy.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong>Step 4: <\/strong>Fill Out the Loan Application Form:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Provide the required details, including your policy number, loan amount requested, and personal information.<\/li>\n<li>Review the information for accuracy before proceeding.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong>Step 5:<\/strong> KYC Verification:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>You may be required to complete KYC (Know Your Customer) verification.<\/li>\n<li>Upload the necessary documents for KYC, such as:<\/li>\n<li>Identity Proof (Aadhaar, passport, etc.)<\/li>\n<li>Address Proof (utility bill, bank statement, etc.)<\/li>\n<li>Income Proof (salary slips, bank statements, etc.)<\/li>\n<li>Ensure that all documents are clear and legible.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong>Step 6:<\/strong> Submit the Application:<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>After filling out the form and completing KYC, review all details.<\/li>\n<li>Click on the &#8220;Submit&#8221; button to send your application for processing.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><strong>Step 7:<\/strong><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>After submission, you will receive an acknowledgment message or email confirming your application.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"offline-process-to-apply-for-lic-loans\"><\/span><strong>Offline Process to Apply for LIC Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Applying for a loan against your LIC policy can be done conveniently through an offline process by visiting an LIC branch office. Below are the detailed steps to follow, along with the required documents:<\/p>\n<ol>\n<li>Use the LIC website or contact customer service to find the nearest LIC branch office.<\/li>\n<li>Before heading to the branch, ensure you have all the necessary documents ready.<\/li>\n<li>Go to the selected LIC branch during working hours. It\u2019s advisable to visit early in the day to avoid long queues.<\/li>\n<li>Request the loan application form from the customer service desk, or download it from the LIC website and fill it out in advance.<\/li>\n<li>Complete the application form with accurate details, including your policy number, loan amount requested, and personal information.<\/li>\n<li>Hand over the completed application form along with the required documents to the LIC representative at the branch.<\/li>\n<li>After submission, ask for an acknowledgment receipt. This will serve as proof of your application and can be useful for future reference.<\/li>\n<li>Keep track of your application status by following up with the branch or checking online if the facility is available<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"lic-loan-interest-rate-and-payment-options-new-section\"><\/span><strong>LIC Loan Interest Rate and Payment Options (New Section)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>LIC (Life Insurance Corporation) offers various home loan schemes with competitive interest rates.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"general-interest-rates\"><\/span><strong>General Interest Rates<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>Starting Rate: 8.50% onwards<\/li>\n<li>Loan Amount: Rs. 1 lakh to Rs. 15 crore<\/li>\n<li>Loan Tenure:<\/li>\n<li>Up to 30 years for salaried individuals<\/li>\n<li>Up to 25 years for self-employed individuals<\/li>\n<li>Processing Fees: 0% &#8211; 0.50%<\/li>\n<li>Foreclosure Charges: Nil<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"specific-loan-types-and-their-interest-rates\"><\/span><strong>Specific Loan Types and Their Interest Rates<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p style=\"padding-left: 40px;\"><b>LIC Griha Suvidha Home Loan:<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Salaried: 8.85% onwards<\/li>\n<li>Self-employed: 8.85% onwards<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><b>LIC Home Loan for Pensioners:<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Salaried: 8.50% onwards<\/li>\n<li>Self-employed: 8.60% onwards<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><b>LIC Home Renovation Loan:<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Salaried: 8.50% onwards<\/li>\n<li>Self-employed: 8.60% onwards<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><b>LIC Home Loan Top-up:<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>9.70% &#8211; 11.55%<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><b>LIC Home Extension Loan:<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Salaried: 8.50% onwards<\/li>\n<li>Self-employed: 8.60% onwards<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><b>LIC Home Loan for NRIs:<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Salaried: 8.50% onwards<\/li>\n<li>Self-employed: 8.60% onwards<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><b>LIC Plot Loan:<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Salaried: 8.70% onwards<\/li>\n<li>Self-employed: 8.80% onwards<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\"><b>LIC Advantage Plus:<\/b><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Salaried: 8.50% onwards<\/li>\n<li>Self-employed: 8.60% onwards<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"how-interest-is-calculated\"><\/span><strong>How Interest is Calculated<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Interest on LIC loans is typically calculated using the following methods:<\/p>\n<ol>\n<li><b>Simple Interest:<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Calculates interest on the entire loan principal for the entire tenure, keeping the repayment process straightforward and consistent.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"2\">\n<li><b>Reducing Balance Method:<\/b><\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>Interest is calculated on the outstanding principal amount after each EMI payment.<\/li>\n<li>This method results in lower interest payments over time as the principal reduces with each instalment.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"how-to-repay-lic-loan-and-pay-interest-online\"><\/span><strong>How to Repay LIC Loan and Pay Interest Online?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Repaying a loan against your LIC policy is a straightforward process, with multiple options available for policyholders. Below, we outline the different repayment methods, focusing on online payments through the LIC portal and offline repayment methods.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"different-repayment-options-available-for-policyholders\"><\/span>Different Repayment Options Available for Policyholders<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Online Payments: Policyholders can repay their LIC loans and pay interest online through the LIC portal.<\/li>\n<li>Offline Payments: Payments can also be made through various offline methods, including bank branches and authorized agents.<\/li>\n<li>Auto-Debit: Some policyholders may opt for auto-debit facilities from their bank accounts for regular repayments.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"detailed-steps-for-online-payments-through-lic-portal\"><\/span><strong>Detailed Steps for Online Payments Through LIC Portal<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Go to the official LIC website, <a href=\"http:\/\/www.licindia.in\">www.licindia.in<\/a>.<\/li>\n<li>Log into Your Account<\/li>\n<li>Click on the &#8220;Customer Portal&#8221; or &#8220;Login&#8221; option.<\/li>\n<li>Enter your User ID and Password to access your account. If you don\u2019t have an account, you may need to register first.<\/li>\n<li>Move to the Loan Repayment Section<\/li>\n<li>Once logged in, look for the &#8220;Loan&#8221; or &#8220;Loan Repayment&#8221; section in the menu. Select the option to repay your LIC loan or pay interest.<\/li>\n<li>Enter Loan Details<\/li>\n<li>Input the required details, such as your policy number and loan account number. Review the outstanding loan amount and interest due.<\/li>\n<li>Choose Payment Method<\/li>\n<li>Select your preferred payment method (e.g., debit card, credit card, net banking). Ensure that you have sufficient funds in your account.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/web.paymeindia.in\/?utm_source=blog+website&#038;utm_medium=blog+content&#038;utm_campaign=personal+loan\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" data-attachment-id=\"179017\" data-permalink=\"https:\/\/www.paymeindia.in\/blog\/mistakes-that-can-lower-your-credit-score\/few-clicks-1\/\" data-orig-file=\"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2024\/05\/few-clicks-1.png?fit=3032%2C264&amp;ssl=1\" data-orig-size=\"3032,264\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;0&quot;,&quot;credit&quot;:&quot;&quot;,&quot;camera&quot;:&quot;&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;0&quot;,&quot;copyright&quot;:&quot;&quot;,&quot;focal_length&quot;:&quot;0&quot;,&quot;iso&quot;:&quot;0&quot;,&quot;shutter_speed&quot;:&quot;0&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;0&quot;}\" data-image-title=\"few clicks 1\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2024\/05\/few-clicks-1.png?fit=1024%2C89&amp;ssl=1\" class=\"alignnone wp-image-179017 size-full\" src=\"https:\/\/i0.wp.com\/www.paymeindia.in\/blog\/wp-content\/uploads\/2025\/01\/apply-loan-upto-%E2%82%B95-lakhs-scaled.jpg?resize=1290%2C112&#038;ssl=1\" alt=\"Apply personal loan upto \u20b95 lakhs\" width=\"1290\" height=\"112\" \/><\/a><\/p>\n<h2><span class=\"ez-toc-section\" id=\"types-of-lic-policies-eligible-for-loan-against-lic-policy\"><\/span><strong>Types of LIC Policies Eligible for Loan Against LIC Policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When considering a loan against your LIC policy, it\u2019s essential to understand the types of policies that are eligible. Below is a categorized list of LIC policies that can be used as collateral for loans, along with brief explanations of each:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"loan-against-lic-endowment-policies\"><\/span>Loan Against LIC Endowment Policies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong>LIC Bima Jyoti:<br \/>\n<\/strong>A limited premium paying endowment plan that provides a combination of protection and savings. It offers a lump sum payment at maturity along with life cover.<\/li>\n<li><strong>LIC Jeevan Azad:<br \/>\n<\/strong>This plan provides financial protection for the family in case of the policyholder&#8217;s demise during the policy term, along with a maturity benefit.<\/li>\n<li><strong>LIC New Endowment Plan:<br \/>\n<\/strong>A traditional endowment plan offers a combination of life cover and savings, providing a lump sum at maturity or in case of death.<\/li>\n<li><strong>LIC New Jeevan Anand:<br \/>\n<\/strong>This plan combines the benefits of endowment and whole life insurance, offering lifelong coverage along with a maturity benefit.<\/li>\n<li><strong>LIC Jeevan Labh:<br \/>\n<\/strong>A limited premium paying endowment plan that provides a combination of protection and savings, with a maturity benefit and life cover.<\/li>\n<li><strong>LIC Aadhaar Stambh:<br \/>\n<\/strong>A plan designed for male policyholders, offering a combination of life cover and savings, with a focus on providing financial security.<\/li>\n<li><strong>LIC Aadhaar Shila:<br \/>\n<\/strong>Similar to Aadhaar Stambh, this plan is designed for female policyholders, providing life cover and savings benefits.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"loan-against-lic-whole-life-policies\"><\/span>Loan Against LIC Whole Life Policies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong>LIC Jeevan Umang<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">A whole life plan that provides lifelong coverage along with a regular income after a specified period, making it suitable for long-term financial planning.<\/p>\n<ol start=\"2\">\n<li><strong>LIC\u2019s Jeevan Utsav<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">A whole life insurance plan that offers a combination of protection and savings, providing financial security for the policyholder&#8217;s family.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"loan-against-lic-money-back-policies\"><\/span>Loan Against LIC Money Back Policies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong>LIC Dhan Rekha<br \/>\n<\/strong>A money-back plan that provides periodic payouts during the policy term, along with a life cover, ensuring liquidity and financial security.<\/li>\n<li><strong>LIC Jeevan Tarun<br \/>\n<\/strong>A plan designed for children, offering money-back benefits at regular intervals along with life cover, ensuring financial support for future needs.<\/li>\n<li><strong>LIC New Bima Bachat<br \/>\n<\/strong>A money-back plan that provides a combination of savings and protection, offering periodic payouts and a lump sum at maturity.<\/li>\n<li><strong>LIC Jeevan Shiromani<br \/>\n<\/strong>A plan aimed at high net worth individuals, providing money-back benefits along with life cover, ensuring financial security for the family.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"whole-life-policies\"><\/span>Whole Life Policies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong>LIC Jeevan Umang<br \/>\n<\/strong>As mentioned above, this policy provides lifelong coverage and regular income, making it a popular choice for long-term financial planning.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"pensionsavings-plans\"><\/span>Pension\/Savings Plans<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li><strong>LIC Jeevan Dhara II<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">LIC Jeevan Dhara II is a non-linked, non-participating immediate annuity plan designed to provide a steady income stream during retirement. Launched on January 22, 2023, this plan allows policyholders to choose from 11 different annuity options, ensuring flexibility to meet individual financial needs. The minimum entry age for this plan is 20 years, making it accessible for younger individuals planning for their future. The annuity payments begin immediately after the policy is purchased, providing financial security and peace of mind to retirees.<\/p>\n<ol start=\"2\">\n<li><strong>LIC Saral Pension<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">LIC Saral Pension is a straightforward and flexible pension plan that offers both single-life and joint-life annuity options. Launched on March 1, 2023, this plan requires a minimum investment of \u20b910 lakh as a single premium, ensuring a guaranteed annual pension of \u20b958,950 until the policyholder&#8217;s death. The plan is designed for individuals aged between 60 and 80 years, making it ideal for those nearing retirement. With minimum annuity options starting from \u20b91,000 monthly, LIC Saral Pension provides a reliable source of income, ensuring financial stability during retirement.<\/p>\n<ol start=\"3\">\n<li><strong><strong>LIC Jeevan Akshay \u2013 VII\n<p><\/strong><\/strong>LIC Jeevan Akshay \u2013 VII is an immediate annuity plan that offers a guaranteed income for life, making it a popular choice for retirees. The plan allows policyholders to choose the frequency of pension payments\u2014monthly, quarterly, half-yearly, or yearly\u2014based on their financial needs. The minimum premium amount varies depending on the chosen annuity option, providing investment flexibility. Available for individuals aged 30 years and above, this plan is designed to cater to a wide range of retirement planning needs.<\/li>\n<li><strong>LIC&#8217;s New Jeevan Shanti<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">LIC&#8217;s New Jeevan Shanti is another immediate annuity plan that offers policyholders the option to choose between single-life and joint-life annuity options. This plan provides a secure income stream during retirement, with the flexibility to select the frequency of annuity payments. Available for individuals aged 30 years and above, LIC&#8217;s New Jeevan Shanti is designed to provide financial security and peace of mind, ensuring that retirees can enjoy their golden years without financial worries.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"what-loan-amount-can-you-borrow-against-lic-policy\"><\/span><strong>What Loan Amount Can You Borrow Against LIC Policy?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When considering a loan against an LIC policy, the amount you can borrow is primarily determined by the surrender value of the policy. Understanding this concept is crucial for determining how much loan you can secure.<\/p>\n<p><strong>Surrender Value<\/strong> is the amount that the policyholder receives if they choose to terminate the policy before its maturity date. The surrender value is calculated based on the premiums paid, the duration for which the policy has been active, and any bonuses accrued. It is important to note that the surrender value is typically lower than the total premiums paid, especially in the early years of the policy.<\/p>\n<p>When you take a loan against your LIC policy, you can generally borrow up to 90% of the surrender value. This percentage can vary based on the specific terms of the policy and the insurer&#8217;s guidelines.<\/p>\n<p>If your LIC policy has a surrender value of \u20b91,00,000, you could potentially borrow up to \u20b990,000 against it.<\/p>\n<p><b>Here are key variations of LIC Policies:<\/b><\/p>\n<ul>\n<li><strong>Endowment Policies:<\/strong> These policies usually have a higher surrender value due to their savings component. Borrowing against these policies can yield a higher loan amount, often up to 90% of the surrender value.<\/li>\n<li><strong>Whole Life Policies:<\/strong> These policies also accumulate cash value over time, allowing for loans against them. The loan amount can be similar to that of endowment policies, depending on the surrender value.<\/li>\n<li><strong>Term Insurance Policies:<\/strong> Typically, term insurance policies do not have a surrender value, as they are pure risk cover without any savings component. Therefore, loans against term policies are generally not available.<\/li>\n<li><strong>ULIPs (Unit Linked Insurance Plans):<\/strong> The surrender value of ULIPs can fluctuate based on market performance. The loan amount can be up to 80-90% of the surrender value, depending on the policy&#8217;s terms and the duration it has been held.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"advantages-of-taking-loan-against-lic-policy-over-personal-loans\"><\/span><strong>Advantages of Taking Loan Against LIC Policy Over Personal Loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li><strong> Lower Interest Rates<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Loans against LIC policies typically come with significantly lower interest rates compared to personal loans. While <a href=\"https:\/\/www.paymeindia.in\/personal-loan\/\">personal loans<\/a> can have interest rates ranging from 13% to 25%, LIC policy loans often have rates around 8% to 10%. This makes them a more cost-effective option for borrowers looking to minimize interest expenses.<\/p>\n<ol start=\"2\">\n<li><strong> No Credit History Required<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">One of the standout features of LIC policy loans is that they do not require a credit history for approval. This makes them particularly advantageous for individuals who may not have an established credit score or those who have faced challenges in the past. The loan is secured against the cash value of the policy, simplifying the approval process.<\/p>\n<ol start=\"3\">\n<li><strong> Continued Life Cover<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">When you take a loan against your LIC policy, the insurance coverage remains active. This means that in the event of an unforeseen circumstance, the policyholder&#8217;s beneficiaries will still receive the death benefit, minus the outstanding loan amount. This feature provides peace of mind, ensuring that loved ones are protected even while accessing funds.<\/p>\n<ol start=\"4\">\n<li><strong> Flexible Repayment Terms<\/strong><\/li>\n<\/ol>\n<p style=\"padding-left: 40px;\">Loans against LIC policies offer flexible repayment terms that can be tailored based on the policy tenure. Borrowers can choose to repay the loan at their convenience, which can be particularly beneficial for those with fluctuating income or financial commitments. Unlike personal loans, which often have rigid repayment schedules, LIC loans allow for more personalized repayment plans.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"alternatives-to-loan-against-lic-policy\"><\/span><strong>Alternatives to Loan Against LIC Policy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When considering alternatives to a loan against a LIC policy, personal loans, and gold loans are two prominent options:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"lic-policy-loan-vs-personal-loan\"><\/span>LIC Policy Loan vs Personal Loan:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Interest Rates: Loans against LIC policies typically have lower interest rates compared to personal loans, which can range from 13-15%. This makes LIC loans more cost-effective for borrowers.<\/li>\n<li>Collateral Requirement: A personal loan is unsecured, meaning no collateral is required, but this often results in higher interest rates. In contrast, an LIC policy loan is secured by the cash value of the policy, making it easier to obtain and often at a lower rate.<\/li>\n<li>Repayment Flexibility: LIC loans offer flexible repayment terms, allowing borrowers to set their own repayment schedules without penalties for late payments. Personal loans, however, have fixed repayment terms and schedules.<\/li>\n<li>Impact on Credit Score: Loans against LIC policies do not affect your credit score, regardless of repayment status. Personal loans, being unsecured, can impact your credit score if payments are missed.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"gold-loans-and-other-secured-loans\"><\/span>Gold Loans and Other Secured Loans<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Gold Loans: These loans are secured by gold and typically offer lower interest rates than personal loans. However, they require physical gold as collateral, which may not be feasible for everyone.<\/li>\n<li>Other Secured Loans: Loans secured against property or other assets can also provide lower interest rates. However, they often involve lengthy approval processes and significant documentation.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"faqs-on-loan-against-lic-policy-new-section\"><\/span><strong>FAQs on Loan Against LIC Policy (New Section)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"padding-left: 40px;\"><strong>Can I take a loan against my LIC policy if it&#8217;s in the grace period?<\/strong><\/p>\n<p style=\"padding-left: 40px;\">No. You cannot take a loan against your LIC policy if it&#8217;s in the grace period. A policy is eligible for a loan only after it has been in force for a minimum period and premiums have been paid regularly.<\/p>\n<p style=\"padding-left: 40px;\"><strong>What happens if I default on my LIC policy loan repayment?<\/strong><\/p>\n<p style=\"padding-left: 40px;\">Defaulting on a LIC policy loan can lead to the policy lapsing. This means the policy will terminate, and you will lose all benefits, including the surrender value.<\/p>\n<p style=\"padding-left: 40px;\"><strong>Is it possible to prepay the LIC loan before the tenure ends?<\/strong><\/p>\n<p style=\"padding-left: 40px;\">Yes, you can usually prepay your LIC policy loan before the end of the tenure. However, there may be prepayment charges applicable, which vary depending on the policy and loan terms.<\/p>\n<p style=\"padding-left: 40px;\"><strong>How is the interest calculated on LIC policy loans?<\/strong><\/p>\n<p style=\"padding-left: 40px;\">Interest on LIC policy loans is typically calculated on a monthly basis. The interest rate is usually fixed and applied to the outstanding loan balance.<\/p>\n<p style=\"padding-left: 40px;\"><strong>Can I get a loan on my LIC policy after maturity?<\/strong><\/p>\n<p style=\"padding-left: 40px;\">No, you cannot get a loan on your LIC policy after it matures. Once a policy matures, the sum assured and any accumulated bonuses are paid out to the policyholder, and the policy ceases to exist.<\/p>\n<p><strong>Also, check:<\/strong><\/p>\n<ul>\n<li>Download the <a href=\"https:\/\/www.paymeindia.in\/personal-loan-app\/\">Personal Loan App<\/a><\/li>\n<li><a href=\"https:\/\/www.paymeindia.in\/personal-loan-for-women\/\">Personal Loan for Women<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>A loan against an LIC policy provides a viable financial solution for policyholders seeking to access funds without liquidating their investments. This secured loan option allows individuals to borrow against the surrender value of their life insurance corporation (LIC) policy, typically offering competitive interest rates between 8.50% and 10.50%. With minimal documentation requirements and no [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":304184,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"How to Get a Loan Against LIC Policy - Complete Guide - 2025","_seopress_titles_desc":"Loan Against LIC Policy: LIC personal loans with low interest rates 8.50%-10.50%. 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