{"id":4514,"date":"2025-07-21T16:55:04","date_gmt":"2025-07-21T11:25:04","guid":{"rendered":"https:\/\/kreditbazar.com\/blog\/?p=4514"},"modified":"2025-07-21T18:02:13","modified_gmt":"2025-07-21T12:32:13","slug":"loan-against-lic-policy","status":"publish","type":"post","link":"https:\/\/kreditbazar.com\/blog\/loan-against-lic-policy\/","title":{"rendered":"Loan Against LIC Policy: The Complete Guide"},"content":{"rendered":"
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Life Insurance Corporation (LIC) policies serve as powerful financial instruments beyond just providing life coverage. For millions of Indians, these policies represent not only security but also a gateway to immediate financial assistance when needed most. A loan against an LIC policy offers policyholders the opportunity to access funds quickly without surrendering their valuable insurance coverage.<\/p>\n\n\n\n

What is a Loan Against LIC Policy?<\/strong><\/h2>\n\n\n\n

A loan against an LIC policy is a secured loan where policyholders can borrow money by pledging their life insurance policy as collateral 1<\/a> 2<\/a>. Unlike traditional personal loans, this financing option allows you to access funds based on your policy’s surrender value while keeping your insurance coverage intact 3<\/a>.<\/p>\n\n\n\n

The loan amount is typically calculated as a percentage of the policy’s surrender value, which is the amount you would receive if you decided to terminate your policy before its maturity 4<\/a>. This makes it an attractive option for those who need immediate funds but don’t want to lose their long-term insurance benefits.<\/p>\n\n\n\n

Types of LIC Policies Eligible for Loans<\/strong><\/h2>\n\n\n\n

Not all LIC policies qualify for loan facilities. Understanding which policies are eligible is crucial before considering this financial option 5<\/a>:<\/p>\n\n\n\n

Eligible Policies:<\/strong><\/h3>\n\n\n\n