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Loan from LIC against a Policy

If you are holding an LIC of India Policy, you are virtually holding a Qualification that’ll grant you some Loan when need arises. Not only does a 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 9% 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.

35 comments (Read them below or add one)

  1. Ravindra Kawale

    I am looking for loan for construction of my house, which is not owned property but slum area. My self and my brother having lic policies having aggregate sum insured of Rs.8 lacs and the policies are more than 5 years old.
    Shall I get loan of Rs.5 lacs for construction against surrender/ mortgaging these policies. Kindly advise.
    Ravindra

    • Surrendering a policy means ending the policy and there is no continuing it. You can do so, and you’ll get money as per surrender clause of the respective policies. As far as loan on policies is concerned, yes you can get loan, but you will have to contact an LIC branch or a Bank to know more.

  2. I want to take a loan for 5lac in future for house project, so how much interest or main value required for invest.

  3. I AM HAVING POLICES WITH LIC. PREVIOUSLY I WAS CHECKING MY LOAN & ACCRUED BONUS ONLINE. NOW THIS IS BLOCKED & NOT SHOWING THE SAME. THIS SHOULD BE SHOWN IN WEBSITE ENABLING THE POLICY HOLDERS NOT TO DISTURB TO ANY BRANCH OFFICIALS FOR THIS PURPOSE. SINCE MOST OF THE OFFICIALS ARE BUSY IN THEIR WORK AND SAY THAT YOU COME AFTER WORKING HOURS.

  4. I AM HAVING MONEY BACK POLICY. PREVIOUSLY I WAS CHECKING MY LOAN & ACCRUED BONUS BALANCE. NOW THIS IS BLOCKED & NOT SHOWING. IF IT SHOWN THEN WHAT IS PROBLEM TO LIC.

    PLS. LET ME KNOW.

  5. j0ydeb kumar mandal

    My lic policy number is 452484,I want to know the loan against the policy. How much can I get?

  6. I am having a new bima gold policy taken in 2007 oct. After 4 yrs I got Rs. 90000/- as money back. The sum assured is Rs.600000/- and term is 16yrs. If I apply for loan how much money I will get ?

  7. I am having a New bima gold LIC policy. The term is 16yrs. and the loan amount is Rs.600000/- I have taken this policy on 18-10-2007. and i got rs.90000/- as money back after 4yrs. Now i am applying for a loan against my policy. Can you tell me for an amount of loan around Rs.3.5 lakhs what will be the rate of interest i have to pay monthly or half yearly.
    thank you

  8. shivaputra kempannavar

    My Policy No. are 313039255/44039. I want to get the loan against these policies. Can I get the loan and know the loan amount?

  9. Vijay kumar singh

    i have a 2 policy in lic at 2000000/- so can you tell me how much loan i get from it

  10. Hi What will happen if loan interest is not paid for the loan taken against the lic policy

    • Nothing, just leave your home for sometime to an unknown place. Later go for a settlement.

      or
      If you have enough money, do not do the above, just chill. Some day lic people will come to you proposing another higher amount as loan.

      or
      The third alternative is just digest all money and wait, they will file a case; do not be afraid as it will continue till your next generation’s golden jubilee.

  11. how can i get loan on my policy, 904312296-902969859 and maximum amount

  12. How much loan available against my policies Nos. 907248376, 908709269

  13. GIVE ME DETAILS OF MY POLICY 948212223 FOR LOAN AND HOW MUCH INTEREST WILL BE THERE

  14. Which policy is best in market. Let me know the name

  15. For Loan again Lic or any other Policy, follow below steps :-
    1) Walk to Lic Branch where from your Policy was registered.
    2) Ask, how much is deposited so far in your policy. ( Policy should be at least 3 years Old )
    3) Fill Form to get Loan again Policy Bond ( Keep Photo copy of Policy bond with you).
    4) Loan will be disbursed in 2 working days to you. No need to spend any money for this. It is your right, you must get it.
    Let me know if any other information is requried.

    Harish Sharma

  16. My Policy No.714172202. I want to get the loan against this policy. Can I get the loan and know the loan amount? my amount is 50 thousand

  17. RAJAPANDIAN RAJU

    My Policy No.743353521. I want to get the loan against this policy. Can I get the loan and know the loan amount?

  18. my policy no. is 172835120 at the name of veena
    i want a loan against this policy.

  19. how much loan available against my policy give details
    961299770 2)968914254 3)960657065 4)968897454

  20. LIC POLICY NO 954481510 check loan status

  21. my policy no.is 415480655 and i had applied for loan.It would be kind of you if you would inform me whether my loan has been passed and when will i get the chq.Thank u

  22. How many loan available against my LIC Policies.

  23. plz lic loan in policy tell me detail in my email

  24. Dear sir,
    I am an holder of insurance Policy No.620811586. Every five years I am obtaining survival benefits of Rs. 40,000/- which is transferred to my wife SB account No. 10116—— account lying in the bank of SBI Chotamangalore Branch. This year I requested to transferred the same along with the letter with premium installment. They refused to send the amount to my my wife’s account and I don’t know where the money gone. When Enquired state Bank, They told to my wife he must open an NRO account to drwon the amount. Please advise what the reason.

  25. which policy best in market. let me know the policy name and details.

  26. let me know the loan details on lic policy new jeevan bima gold, 3 years completed.

    policy amount: 300000 (three lakh only)

  27. how can i get loan on my policy no.173278456.and maximum amount.plz. reply

  28. renjith k varghese

    how can i get a loan against my policy no:393643666

  29. DEAR SIR I WANT TO KNOW ANY NEW POLICY ABOUT FUTURE PLAN.

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