LIC Policy Loan Application Form | LIC Policy Loan Form 5198 PDF Download | LIC Policy Loan Form PDF
Apart from insurance plans, unlike other insurance companies, Life Insurance Corporation of India (LIC) offers personal loans against its insurance plans. This loan can be taken for expenses like travel, higher education, medical emergency, wedding, home repairs, etc. This loan against the policy is a secured loan where your insurance policy is kept as security. In case the applicant is unable to repay the loan, LIC can retain the insurance policy amount. If you also want to get a LIC insurance policy loan, then for this we will provide you complete information on how to apply for a LIC insurance policy loan here. Along with this, we will also provide you the link to Download LIC Policy Loan Application Form PDF. To get all the information read our article carefully till the end.
LIC Policy Loan Application Form PDF
Life Insurance Corporation LIC is a government insurance company headquartered in Mumbai. It is the largest insurance company in India. Apart from insurance, LIC also provides personal loans to its policyholders against their insurance plan. This is a good option for LIC policyholders as they can get personal loans at low-interest rates and pay them back on time with affordable EMIs. At the same time, it should also be noted that since these are personal loans, there is a limit to the personal loan that can be availed. Even though, this loan is being taken for small and medium expenses only. Stay tuned till the end to know all other details in detail and to know how to apply for Life Insurance Corporation Policy (LIC) Loan.
|Article/Form||LIC Policy Loan Application Form|
|Applicable||In all states|
|Profit||Loan for expenses|
|Beneficiary||LIC Policy Holder|
|Purpose||To help the policyholders financially|
|Official Website||Click Here|
|Loan Application Form PDF||Download|
Life Insurance Corporation Policy (LIC) Personal Loan
LIC charges a low interest rate on its personal loan. Usually, banks charge interest between 12%-24% for personal loans/personal loans, but LIC charges interest rates closer to 9%. This is a better option than all other unsecured loan options from banks. At the same time, many banks also give loans against LIC policy in the form of guarantees. A personal loan can be used for many purposes. Sometimes people do not have money in case of emergency and need funds immediately. In this case, LIC Personal Loan / Personal Loan can fulfill their requirement.
LIC Personal Loan Eligibility Terms
There are some important eligibility conditions for availing loans against LIC policy, which are as follows.
- The applicant must be an Indian resident.
- The minimum age of the applicant should be 18 years.
- Applicant must have a valid LIC (or other life insurance) policy.
- The LIC policy used for availing the loan has guaranteed surrender value (Term plan not eligible)
- LIC premiums for at least 3 years must have been paid in full.
- The policy should be completely handed over in favor of LIC.
LIC policy for availing personal loan
Presently term plans provided by LIC cannot be used as security/guarantee for this secured personal loan as they do not have a guaranteed surrender value. Following are some of the popular LIC policies used as collateral for loans against LIC policy:
- life progress
- life benefit
- SinglePremium Endowment Plan
- New Endowment Plan
- New Jeevan Anand
- Limited Premium Endowment Plan
- Jeevan Lkshya
- The loan is valid for LIC Endowment policyholders only.
- The loan amount is dependent on the surrender value of the plan (the current amount in the fund after three years from the commencement of the insurance).
- The insurance policy is kept by LIC as security. Therefore, the insurance company can suspend the policy in case the applicant does not repay the loan.
- Not all insurance policies by LIC have this facility. Hence, it is important to choose the right policy so that the applicant can avail of the loan without any inconvenience
- The rate of interest on the loan is usually between 9-11%.
- The loan amount depends on the value of the LIC policy. Usually, the loan amount goes up to 90% of the policy value.
- If the loan amount exceeds the surrender value, LIC will terminate the policy.
- If the policy matures before the loan is repaid, LIC will deduct the loan amount from the policy amount.
- Once the loan is granted, LIC will have full control over your insurance policy.
Following is a list of the main personal loan documents that need to be provided to apply for this secured loan.
- Original policy document.
- Identity Proof => Aadhar Card, Voter ID Card, Passport.
- Residence Proof => Aadhar Card, Voter ID, Driving License, Utility Bill.
- Income Proof => Salary Slip, Bank Account Statement, Assignment Deed.
How to Apply for LIC Policy Loan
At present, you can apply for a loan against LIC policy using offline or online mode. Here we will provide you the information of both the process –
LIC Policy Loan Offline Application
If you want to apply for a LIC loan offline, then for this you need to follow the following steps.
- First, you go to the nearest LIC office and get the applicable loan application form.
- Or you can also download the loan application form from the link given below.
- After downloading the form fill the form with KYC documents and submit it along with the original policy document.
- Once the application details are verified, a loan of up to 90% of the surrender value of the policy is given. Thus you can easily apply offline.
LIC Policy Loan Online Application
If you have registered for LIC e-services, you can log in to your online account and check whether your insurance policy is eligible for a loan against the LIC policy. If it is, the terms and conditions, interest rates and other features of the loan will be shown to you online. On submission of the application, you may need to upload the KYC documents or send them to the nearest LIC office to make your loan application.
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