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LIC offers secured personal loans against its policies at interest rates starting from just 9% p.a., with flexible repayment tenures of up to 5 years. You can avail a loan amount up to 90% of the policy’s surrender value to meet various personal financial needs.
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Voucher on disbursalCheck Personal Loan Offers Online
Customer Rating
2839 Reviews
Wide Choice
Curated offers from 30+ lenders
Quick Disbursal
Money in your account instantly
SmartMatch
Offers ranked according to eligibility
Digital Process
Hassle-free & paperless
Compare & Choose the Best Offer
Pre-approved Offers with Instant Disbursals
Know Your Chances of Approval
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Get up to ₹40 Lakh in 5 Simple Steps
Step 1: Enter your mobile number in the application form
Step 2: Provide your personal details
Step 3: Enter OTP to verify your mobile number
Step 4: Select the loan purpose and loan amount
Step 5: Compare offers and apply for the best-suited loan
LIC personal loan interest rate starts as low as 9% p.a. However, the personal loan interest rate applicable to a particular applicant varies with the person’s individual applicant profile, including the person’s income level, nature of employment, loan amount and tenure desired, etc.
Please Note: LIC is not a Paisabazaar partner. Offers would be from partner Banks/NBFCs only.
When interest payable on a personal loan is calculated using flat rate or flat balance method of interest calculation, it involves calculating interest on the entire loan principal amount throughout the loan tenure without taking into account the portion of the principal that has already been paid. The fact that the outstanding loan principal amount gradually decreases as monthly EMIs are paid is not taken into consideration by this method.
Contrary to this, the reducing balance method involves calculating interest only on the outstanding loan principal amount every month. Thus, as the outstanding loan amount decreases every month, the interest payable also decreases. Therefore, you will save on the total interest payout of the loan when interest is computed using reducing balance interest rates. LIC makes use of the reducing balance method to calculate the interest payable on its personal loans.
Given below is a sample of EMI calculations using Paisabazaar’s personal loan EMI calculator (based on the reducing balance method) taking different loan amounts, tenures and interest rates into consideration:
| Loan Amount (Rs.) and Interest Rate |
Monthly EMI Payout (Rs.) |
||||
|---|---|---|---|---|---|
| 1-year loan tenure | 2-year loan tenure | 3-year loan tenure | 4-year loan tenure | 5-year loan tenure | |
| 1 lakh @ 9% | 8,745 | 4,568 | 3,180 | 2,489 | 2,076 |
| 5 lakh @ 11% | 44,191 | 23,304 | 16,369 | 12,923 | 10,871 |
Given below is a sample of EMI calculations using the flat balance method taking into account different loan principal amounts, loan tenures, and loan interest rates into consideration:
| Loan Amount (Rs.) and Interest Rate |
Monthly EMI Payout (Rs.) |
||||
|---|---|---|---|---|---|
| 1-year loan tenure | 2-year loan tenure | 3-year loan tenure | 4-year loan tenure | 5-year loan tenure | |
| 1 lakh @ 9% | 9,083 | 4,917 | 3,528 | 2,833 | 2,417 |
| 5 lakh @ 11% | 46,250 | 25,417 | 18,472 | 15,000 | 12,917 |
LIC personal loan interest rate starts at 9%. The following table gives a sample of the total interest payout, the total amount repaid and the proportion of interest in the total amount repaid for different LIC personal loan amounts, interest rates, and tenures.
| Loan Amount (Rs.) | Tenure (years) | Total Interest Payout (Rs.) | Total Amount Repaid (Rs.) | Proportion of Interest in Total Amount Repaid |
|---|---|---|---|---|
| 1 lakh @ 9% | 1 | 4,942 | 1,04,942 | 5% |
| 3 lakh @ 10% | 3 | 48,486 | 3,48,486 | 14% |
| 5 lakh @ 11% | 5 | 1,52,273 | 6,52,273 | 23% |
Swipe to see more table data
Given below are a few tips that could help you avail a lower rate of interest on your LIC personal loan:
Here are a few important factors that affect LIC personal loan interest rate:
Get up to ₹40 Lakh in 5 Simple Steps
Step 1: Enter your mobile number in the application form
Step 2: Provide your personal details
Step 3: Enter OTP to verify your mobile number
Step 4: Select the loan purpose and loan amount
Step 5: Compare offers and apply for the best-suited loan
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