If you’re dealing with financial difficulties, many people consider taking out a personal loan.
However, this can be a costly choice since the interest rates are often high, typically ranging from 10% to 15%.
In this case, if we tell you that there’s an option to get a loan at a low interest rate, you might be interested.
However, you’ll need to have a LIC policy to do so, as you can secure a loan against it with a lower interest rate.
Let’s find out how you can take a loan on your LIC policy.
Who Can Get a Loan Against LIC?
To take a loan against your LIC policy, you need to meet certain requirements:
1. You must be an Indian citizen. You should be at least 18 years old.
2. You need to be a policyholder with a valid LIC policy and have paid at least 3 premiums.
Why is an LIC Loan Beneficial?
A loan against an LIC policy offers several advantages for Indian consumers:
1. The policyholder can get a loan of up to 80%-90% of the surrender value, making it a preferred choice.
2. Taking a loan against an LIC policy means you’ll pay a lower interest rate compared to a personal loan.
3. The interest charged depends on the total loan amount and how often you pay the premiums.
4. The more frequently and the higher the premium amount you pay, the lower the interest rate. However, LIC typically offers loans with an interest rate of around 10-12%.
5. The process is straightforward and safe. Since it’s the policyholder’s own money, taking a loan against an LIC policy is easy.
How to Apply for a Loan
You can apply for a loan against your LIC policy in two ways: online or offline.
Offline
1. First of all go to your nearest LIC branch. Then fill out the loan application
2. After this submit the necessary documents.
Online
1. Register for premium services on the insurer’s website.
2. Visit the insurer’s website. Click on the ‘Online Loan’ tab.
3. You will be redirected to another page.
4. Click on ‘Through Customer Portal’ to request an LIC loan online.
5. Log in with your User ID, DOB, and Password. Request your loan against LIC.
6. Once processed, the loan will be disbursed within 3-5 days.
