LIC Personal Loan

The plan to buy a home or car cannot be termed as a financial emergency because months of planning go into making such a decision. Expenses including medical bills, sudden wedding plans, new educational opportunities can fall under the emergency category. In such scenarios, Life Insurance Corporation of India or LIC can help you by providing personal loans. You need to have a LIC policy which can be used to avail secured personal loans against LIC policy. LIC Personal Loans are different from any other personal loan as these are taken against an existing insurance policy. But, the competitive LIC Personal Loan interest rates and flexible loan tenure makes it equivalent to any other personal loans available in the market. Read ahead to know more about the details of the LIC of India Personal Loan.

Take a look at the attractive features and benefits of LIC Personal Loan here.

*Fees and charges are subject to market conditions and financial institutions’ discretion.

You have to fulfill the below mentioned LIC Personal Loan eligibility criteria to qualify for a loan.

• The applicant should be a citizen of India.

• Age of the applicant should be between 21 years and 65 years.

• The applicant should own a life insurance policy.

• The policy should have acquired a surrender value.

• The policy should not be a Term Insurance Policy or Unit-Linked Insurance Plan (ULIP).

Some of the popular LIC policies on which you can take a personal loan are:

• Jeevan Pragati

• Jeevan Rakshak

• Jeevan Lakshya

• New Endowment Plan

• New Jeevan Anand

• Single-Premium Endowment Plan

• Jeevan Labh

• Limited Premium Endowment Plan

The LIC Personal Loan interest rates are lower in comparison to regular personal loans. The current LIC Personal Loan interest rate is in the range of 9.00% -36.00% and can vary depending on the lender. You can avail loans on your insurance policy from LIC or other lenders like SBI, HDFC Bank, Axis Bank, and others at 1-2% lower rates than personal loan rates. Here is a comparison of personal loan interest rates for top lenders :

*Interest rates and charges are subject to market conditions and financial institutions’ discretion.

You can apply for a LIC Personal Loan online and offline. Before that, it is important to ensure whether you are eligible for a LIC policy loan or not. Follow the below mentioned steps for to check your eligibility;

• Login to the LIC account by visiting the LIC e-service website.

• Download and fill the Form 5196.

• Submit Form 5196 to your policy agent.

• The policy agent shall follow up with the respective LIC office for further proceedings.

• Visit the nearest bank branch or LIC office that provides personal loans against LIC policy.

• Fill the loan application form.

• Submit KYC and policy documents for verification.

• As soon as the documents and the policy is verified, your loan is approved.

• Visit the official website of the lender from where you wish to avail a loan.

• Under the Personal loan tab or Loan against securities tab, click on the ‘Apply for a loan against LIC policy’.

• Fill in the online LIC loan application form.

• Upload the scanned copies of KYC and policy documents.

• Submit it after checking carefully.

• As soon as the documents and the policy is verified, your loan is approved.

Here is the complete list of required documents for availing a LIC Personal Loan.

• Original LIC policy document

• Proof of Residence 

Passport/Voter ID card/Driving license/Postpaid utility bill like gas bill, electricity bill, etc

• Proof of Identity

Aadhaar Card/PAN card/Passport/Voters ID card/Driving license

• Proof of Income 

Salary slip for the last 3 months, Bank Statement for the last 3 months with income details

• Deed of assignment