Life Insurance Corporation (LIC) is a government owned insurance company headquartered in Mumbai. It is the largest insurance company in India. Apart from its wide portfolio of insurance products, LIC also offers its policy holders the opportunity to avail personal loans against their policies. This is a great option for LIC policyholders as they can avail personal loans at low interest rates and pay them back over a period of time with affordable EMIs. It must be noted that since these are personal loans, there is a limit to the amount that can be borrowed. Even though, these loans are great for small and medium expenses.
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|Interest Rate||Starts from 9%|
|Loan Tenure||5 years|
|Loan Amount||90% of the policy’s surrender value|
Personal loans can be used for many purposes. Sometimes people end up with financial emergencies and find themselves in need of immediate funds. LIC personal loans can provide capital and fulfil their need and ensure an individual can take care of the situation.
LIC offers low interest rates on its personal loans. Usually, banks charge interest somewhere between 12%-24% for personal loans. But, LIC charges interest rates that are close to 9%. This makes it a better choice when compared to all the other unsecured loan options from banks. That said, a lot of banks also offer loans with the LIC policy as collateral.
The total loan amount that can be borrowed with an LIC personal loan is limited to 90% of the surrender value. Also, an individual can only apply for this loan after they have paid 3 years of insurance premiums. These loans can be taken for meeting any urgent needs such as education, medical expenses, marriage, travel, etc.