LIC Loan Against Policy Guidance in Pune
Understanding eligibility, process and considerations before taking a loan against your LIC policy.
Many LIC savings-oriented plans (endowment, whole life) allow the policyholder to take a loan against the policy once it has acquired a sufficient surrender value, typically at a specified interest rate set by LIC.
General Eligibility
The policy generally needs to have run for a minimum period and acquired a surrender value; the maximum loan amount is usually a percentage of the surrender value, per LIC's current rules for that plan.
Key Considerations
- Interest accrues on the loan and must eventually be repaid, or it is adjusted against the claim amount
- Pure term insurance plans typically do not offer a loan facility, since they have no surrender value
- Unpaid loan and interest can reduce the eventual maturity or death benefit if not cleared
LIC Policy Loan Guidance FAQs
Generally, savings-oriented plans like endowment and whole life plans that acquire a surrender value; pure term plans typically do not qualify.
LIC sets and periodically revises the applicable interest rate for policy loans — ask S. Kulkarni for the current rate applicable to your specific plan.
Outstanding loan plus accrued interest is typically deducted from the eventual maturity or death benefit payable under the policy.
Get Help With LIC Policy Loan Guidance
Share your policy details and requirement — S. Kulkarni will guide you through the next step.