Loan against LIC

For purposes under priority sector lending or for any other purposes which are not speculative.

Interest RateAs per Bank Schedule (Board Approved, RBI Directives)

Maximum Amount75% of Policy Surrender Value

Maximum TenureUp to 36 Months or Policy Maturity (Whichever is Earlier)

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Key Highlights

Loan against life insurance policy surrender value

Up to 75% of surrender value financing

Endowment policies preferred

Repayment linked to policy maturity

Bank-controlled security with registered assignment

Penal charges applicable only on default

Eligibility Criteria

Loan up to ₹1 Lakh - Nominal Member eligible.

Loan above ₹1 Lakh - Regular Member required.

Borrower must be employed or have sufficient business income to repay loan installments and insurance premium.

Policy must be in force for more than 3 years and must have surrender value.

Only policies where age has been admitted shall be accepted.

Documents Required

KYC documents of the borrower.

Original Life Insurance Policy document.

Status report obtained from the Insurance Company.

Absolute assignment deed in favour of the bank duly witnessed.

Proof of assignment registration with the Insurance Company.

Security & Fees

Collateral / Security

Assignable Life Insurance Policy (excluding Whole Life policies, policies under Married Women's Property Act, and policies in the name of minors) having surrender value, duly assigned and registered in favour of the bank.

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Processing Fee

As per prescribed Bank's Service Charges.

Check fees and charges

Visit the branch or call us for more details.