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.
Loan Amount |
90% of the policy’s surrender value and not the sum assured of the LIC policy. |
Interest Rate |
Starts from 9% per annum. It will be charged only on the sum that will be borrowed and not on the entire loan amount. |
Loan Tenure |
Can be extended up to 5 years |
Pre-payment Charges |
Nil |
Foreclosure Charges |
Nil |
Lender |
Avail the loan from LIC itself or borrow from any other bank of your choice. |
*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 :
Lender |
Interest rate |
Life Insurance Corporation Of India |
9.00% onwards |
SBI |
9.60% onwards |
HDFC Bank |
10.25% onwards |
ICICI Bank |
10.25% onwards |
Axis Bank |
10.49% onwards |
*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
Also Check Other Lenders Personal Loan Options |
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Tata Capital Personal Loan | |
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The maximum personal loan amount that can be sanctioned by LIC will be 90% of the policy’s surrender value.
Yes, there is. The applicant should be between 21 and 65 years of age.
When a personal loan is availed against an insurance policy, it may take 3-5 days for LIC Personal Loan approval.
You can calculate the EMI you need to pay every month for a LIC Personal Loan using a LIC Personal Loan EMI calculator available online.
You can get in touch with LIC customer care using the 24 x 7 customer care number - +91-022 6827 6827.