Loan can be availed on LIC products
after completion of 3 years policy term. This feature is available with New
endowment plan, New Jeevan Anand, Single Premium Endowment Plan, New Bima
Bachat, New money back plan, Jeevan Labh, Jeevan Lakshya and New Bima Diamond.
Loans won’t be given on children’s plans, pension plans, ULIP plans and terms plans.
For policies with 10 or more than 10 years of premium payment term, 3 full year
premium should have been paid for the policy to be eligible to take a loan. For
policies with less than 10 years premium payment term, 2 full year premium
should have been paid.
Loan limit can be checked in the below
This amount has arrived by taking the
last 15 years bonus history of LIC and this is just a approximate value.
Surrender value can be calculated from
As a standard rate 80% of the
surrender value can be taken as loan.
Interest charged on loan against policy was pegged flat 9.5% per annum which
would be compounded annually.
The borrower will be given two options
for loan re-payment.
1. He/she can repay loan with his own
funds and continue the policy. This has to be paid before the policy term ends.
2. He/she can complete the premium payments and maturity amount will be given
after loan deductions.
The loan value arrived would be too low if the sum assured is less or if loan was taken as early as 3rd
year because the surrender value would be very less and loan value will be
still lower .So, taking loan when policy nearing maturity or taking higher sum
assured will get you higher loan value.
Policyholder needs to submit a letter requesting for loan in home branch LIC,
along with bank details to which the loan amount would be transferred through
NEFT. This usually takes 7-10 days to release loan amount.