LIC of India is the leader in Life Insurance and the best company in claim settlement ratio. This make LIC a world leader in Insurance Industry.
What is LIC policy loan ?
LIC policy holders can enjoy the facility of loan after completing 3 year with any pending premium. Loan is available almost to all plans except Term plan and some of ULIPs
What is the eligibility for LIC policy loan ?
Policy loan is available once the policyholder pays complete premium for 2 years and 3rd year begins. On third year based on the loan eligibility, loan would be available to the policyholder.
Documents required for LIC policy loan ?
The documents required for LIC policy loan are :
- Original Policy Bond
- PAN card copy
- Cancelled Bank cheque
- Policyholder’s name should be printed in the cheque leaf
- If name is not printed, updated Bank passbook Xerox copies can be submitted
How much policy loan LIC would given ?
LIC policy loan is decided on the basis of number of years premium paid. Minimum premium payment should be done for continues 2 years and 3rd year should have started. Then only the system would calculate and show the surrender value. The loan would be on the basis of surrender value. The loan would up to 90% of the surrender value of the policy. The surrender value would be approx. 40 to 50% of the premium paid.
Let us see a rough calculation on total loan availability. ( An example )
A policyholder paid is Rs. 2,40,000/- for 4 years, the surrender value in 4th year would be approx. 40%. Which means the surrender value is around 96,000/-. The loan would be 90% of Rs. 96,000/- which is approx. Rs. 86,400/-
How to know the loan availability ?
LIC policy loan availability can be checked by visiting any nearby LIC of India branch or your own LIC Agents can also help you to know the loan value.
Where can I do LIC Loan principal and interest repayments?
Policyholder or his authorised person can deposit the LIC loan principal and interest at the same branch otherwise at LIC online portal at LIC Loan options webpage. Interest can be paid at any LIC branch across India but loan principal would be accepted at the base branch only.
How much is the LIC policy loan interest ?
In most of the LIC plans, the interest rate is 9.5%. Loan interest to be paid for every 6 months. Policyholders can check and pay the LIC policy loan and interest both at LIC official website only .
For paying LIC principal loan amount or interest, registration at LIC portal is a must
When would LIC returns the original policy bond?
Once policy loan is completely paid with interest, the policy bond would be directly sent by Post. Policyholder can authorize his agent or anyone else or he can directly go and collect the original policy bond.