You know how to take Loan against LIC Policy from LIC of India. What you may not know is that you can take loans against your LIC Policy from other financial institutions like Banks, SBI for example. SBI Offers loans against your Life Insurance Policies, Kisan Vikas Patra’s, National Saving Certificate’s etc.
Just like SBI Loan against Gold and Property, Interest rates for Loan against LIC Policies (and other holdings mentioned above) is dependent on the Base rate set by the Bank and will be changing (floating) from time to time.
For a Loan Tenure of up to 6 years, the Interest rate charged by SBI is 4.50% above the base rate.
The amount of loan you can get depends on the Policy Surrender value at that time. LIC gives loans of up to 90% of the Policy’s existing surrender value. SBI in most cases may follow the same rule.