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Loan eligibility on LIC policy and Vested Bonus

If you are holding a LIC of India Policy, you are virtually holding a Qualification that will grant you some Loan when need arises. Not only does LIC grant loan for its endowment policies, many financial institutions, like Bank’s and NBFC’s grant Loans’ with your LIC Policy as a surety. Hence, you can either contact your LIC policy serving branch or check with your Banker to avail loan against LIC policy.

If you take loan from LIC, interest will be charged at 10% (wef 1 April 2012) that has to be paid Semi annually. Normally, the Corporation will grant loans of up to 90% of the Policy Surrender value.

LIC provides loan for a minimum period of 6 months. If you need loan for any period less than 6 months, you’ll have no option but to pay interest for 6 months. But, in case the policy matures or the LA dies in these 6 months, interest will only be calculated from date of loan grant till the date of maturity/ death.

When the use is met and you have sufficient funds, you can repay the loan amount along with the interest at any time. Or, you can continue to only pay the Interest half yearly, and let the loan amount be deducted at the time your LIC Policy claim.

As said before, you can also get loan from a bank using your insurance policy as a collateral. The amount of loan you can get in this way is entirely up to the bank and the interest rate charged will be according to the on going bank rates.

Check eligible loan amount online

Recently, LIC has begun displaying the eligible loan in their customer portal. LIC loan eligibility and bonus accrued

Just enroll your LIC policy at LIC portal and visit the ‘Loan and Bonus’ link to know the amount. As you can see, along with the loan amount, you may also see Bonus amount accrued by your policy (in case your policy is eligible for bonuses) till date.

An example of the Bonus and loan section of the LIC portal is shown here (Policy number is edited).

Update: 12 June 2012: It appears that LIC of India have taken off this feature to check loan eligibility and accrued bonus from their online portal. I do not know why they have done so but obviously it is not for some good reason (atleast that I can think of). It was such a nice feature, instead of asking someone, policy holders could themselves know the amount of bonus their policies have accrued and the loan amount eligible. I would like to call it lack of transparency. I only hope they add it back in the future.

Now if you want to know the same, you would have to either call them or visit your branch.

Update 2: 15 June 2013: For all policies that are eligible for bonus, I can now see the amount displayed in the portal as ‘Vested Bonus’. This is a good move and I hope they bring back the Loan Eligibility amount too.

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20 comments

  1. I HAVE TWO MONEY BACK POLICY JEEVAN VARSHA 196 ( 24.02.2009 AND 28.02.2009 )
    I WANT LOAN AGST.LIC POLICY HOU CAN GET LOAN

  2. Nilesh.N.kanjar

    My policy no 89****56 how much loan can I get?

  3. LIC policy no 21**751
    Show total payment till date.

  4. santosh kumar singh

    I KNOW YOUR NEXT BONUS INFORMATION

  5. LIC is worst policy.
    They removed loan and benefit to view from online. Lots of hidden term and condition.

  6. Why did the LIC portal team removed the link to check the the accrued bonus and loan details link?

  7. I think, the loan eligibility link has been removed in LIC Portal.

  8. my policy no- 955391934
    how much of loan eligibility
    i can get & how much of interest %
    pls reply

  9. My name is harish mishra policy no.255332833

  10. SIR,
    MY NAME IS SHIVAPPA.K
    MY POLICY NO:615825621
    HOW MUCH OF LOAN CAN I GET ?

  11. my policy no is 951229280 how much i can avail loan against this policy

  12. my policies nos 751546150, 713301206, 713658 594 and 715125158 how much of loan can I get?

  13. A policy was opened in the name of Polly Koch and a sum of Rs. 20000 was deposited want to know the status.
    policy no 484854604

  14. my policies no 623661192 and 661525894 how much of loan can I get?

  15. Hello,
    I am just two years into the endowment policy table 14. I paid two installments including the starting premium. I took lic policy in 2010.I have enrolled to the lic portal but the accrued bonus and the loan amount is not showing in the portal. My policy is a with profit policy.I have talked to the lic customer care . They say that the bonus will be shown only after 3 years of the policy. Is it true? Plz reply soon my mail.
    Thank you

    • Yes, that’s correct. 3 years is the lock-in period for most policies so you’d be eligible for bonus (and loan) only after you complete 3 years.

      • When I enrolled my policy into the portal from that time only I could see the accrued bonus and loan eligibility. Suddenly they removed it. Its not that 3 years later it will be shown on the portal. My policy is 6 years old..

        • You didn’t get my point. I was saying bonus will be accrued only after 3 years of ‘starting your policy’, not ‘enrolling your policy on the portal’.
          In your case, since your policy is 6 years old, you probably enrolled your with in the last 3 years. So obviously you’d see bonus and loan information.
          But yes, to confirm your point, LIC have recently removed the loan and bonus information from their portal.

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