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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.

LIC Personal Loan Features & Benefits

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


Foreclosure Charges



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.

LIC Personal Loan Eligibility

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

LIC Personal Loan Interest Rate

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 rate

Life Insurance Corporation Of India

9.00% onwards


9.60% onwards


10.25% onwards


10.25% onwards

Axis Bank

10.49% onwards

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

How to Apply for LIC Personal Loan?

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.

How To Apply For A LIC Personal Loan Offline?

  • 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.

How To Apply For A LIC Personal Loan Online?

  • 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.

Documents Required for LIC Bank Personal Loan

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


The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort. 

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

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FAQs on LIC Personal Loan

What is the maximum personal loan amount that can be sanctioned by LIC?

The maximum personal loan amount that can be sanctioned by LIC will be 90% of the policy’s surrender value.

Is there an age limit to apply for LIC Personal Loan?

Yes, there is. The applicant should be between 21 and 65 years of age.

How much time is taken for the LIC Personal Loan to be approved?

When a personal loan is availed against an insurance policy, it may take 3-5 days for LIC Personal Loan approval.

How can I calculate LIC Personal Loan EMI?

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.

How can I get in touch with LIC customer care?

You can get in touch with LIC customer care using the 24 x 7 customer care number - +91-022 6827 6827.

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