apply loan against LIC policy in india

In India, Life Insurance means LIC. LIC is the most trusted brand in the Insurance sector in India. Though, LIC provides traditional life insurance plans that have low life coverage and poor investment returns, still there is a very interesting aspect in LIC plans. This interesting aspect enables the policy holders to take loan against LIC policy. Earlier, for taking loan against policy, one has to go to its nearest branch and then apply for it. And if you live far away from the branch then, this becomes quite hectic task for you. However, recently LIC has launched the facility to apply loan against LIC policy online.

These days everything is digital then why will LIC stay back then? Now you can apply loan by sitting in your home. All the steps like filling of application, repayment of loan etc.  can be done online. Let’s find out how to apply loan against LIC policy online in India.

Steps to apply Loan against LIC Policy Online?

Here is a step by step guide which will help you in applying loan against LIC policy online.

1. First of all you will have to visit the official LIC website.

2. On the home page you will find the option of “Online Loan” under the Online Service section head.

3. When you will click on the Online loan option you will be redirected to a new page. On this page you will find two options first option is of loan repayment of interest payment while second option is for submitting Online Loan Request.

4. Well if you wish to avail this facility of loan against LIC policy then firstly you will have to get yourself registered as a customer.

5. Then for applying loan you will have to click on the “Through Customer Portal”. Since online loan facility can be only availed via customer portal. Later you will find that you have been redirected to the login page. However if you are a registered user then you will have to provide your LIC login id and password. Even for authentication process you will asked to enter your date of birth. While if you are not a registered customer then you can even get yourself registered via the LIC portal page.

6. Once the page has logged into your account then you will be redirected to new page. Well now here you will be asked for your Aadhaar card details and PAN card then just simply click on the “Proceed” button. Now finally you will be able to apply for loan against LIC policy.

However all the loan related documents will be send to you on your email address and mobile number.

Also Read>>> LIC Jeevan Utkarsh Policy 846 – Features and Benefits

Features of Loan against LIC Policy:

  1. Maximum amount of loan for which you can apply is 90% of the surrender value of the policy.
  2. You will be charged interest on the loans taken on half yearly basis.
  3. In case if you fail to pay the interest amount within 30 days from its due date then LIC will close your policy. In addition it will even settle down the loan amount against al the further proceedings.
  4. You may even contact some other financial institutions other than LIC for applying loan against your policy. But the loan amount sanctioned by other financial institution will be lower while the interest rates will be higher than LIC bank.
  5. In order to avail the facility of loan against LIC policy you must have paid premium for minimum of at least 3 years.
  6. The Interest rates charged is near about 10% (approx.) per annum.
  7. Original documents must be submitted for security purpose.

Advantage of Loan against LIC Policy Online –

  1. If you will apply for loan against LIC policy under some emergency situation then the proceedings are done very quickly.
  2. If you will apply for loan online then you will never have to visit LIC branch. As all the proceedings can be done online too.
  3. Best part is that interest rate charged by loan against lic policy is cheaper than any other personal loan.
  4. Well even repayment of the loan can also be done online.