No one knows when the financial emergency occurs on them. Here, the role of instant loans comes. The loan helps people manage their finances in case of any demise or challenges. In case when you do not have assets to pledge but have an LIC plan, then you can use it to avail of the loan. LIC keeps your credit score high and helps you get a loan easily when you need it. The loan facilities against the LIC Policy help you to meet your financial needs. In this post, we are going to tell you about the Loan against LIC Policy, eligibility for it, the process to avail of this loan, and many more.
What is a Loan Against LIC Policy?
A loan is a LIC policy is a loan that may be availed towards the safety of your LIC policy. The policy receives assigned to the lender till the loan is paid returned in full by using the borrower. If the borrower is unable to pay the loan lower back, then the lender receives all of the benefits which can be accumulated to the policy.
During the time period of the loan, the insured will continue to pay charges on the coverage, as ordinary, the existence coverage may also maintain. A loan in opposition to a coverage policy is likewise to be had when the coverage policy is to be had from a private insurer.
Important Features of Availing a Loan Against LIC Policy
There are a few critical features which you have to maintain in mind before availing a loan in opposition to a LIC policy are
- The loan against a LIC coverage comes at a less rate than a personal loan (10% onwards) or a credit score interest rate (36-48%).
- Like a private loan, a loan availed towards LIC coverage may be used for any reason according to desires.
- Availing a loan towards a LIC/Insurance coverage could not require a credit score. This can come across as one of the greatest benefits for an individual with a credit rating.
- The existence cover at the coverage will retain in spite of availing the loan. In case of demise of the insured (borrower) then the dying gain will be paid after deducting the quantum of the amazing loan.
- The processing time for a loan towards an insurance policy is minimal, specifically whilst it is received from the insurer.
- Due to the various types of repayments to be made, a lesser financial burden is created when availing of this loan.
- A loan may be availed handiest after the policy accumulates a certain surrender rate, because of this at some stage in the preliminary years of the policy it would be hard to avail a loan in opposition to the policy.
Like some other loan, avail this loan only in case you are sure of paying it lower back on time. Or else the beneficiaries of your coverage can also come to be dropping the benefits in case of any eventuality.
Eligibility Criteria for a Loan in Opposition to LIC Policy
Here are the eligibility criteria for a loan towards LIC policy
- The least possible age of the borrower should be 18 years.
- A borrower needs to possess an official LIC policy.
- A minimum of three years of LIC top rate has to be absolutely paid.
- Mostly, monetary establishments provide this credit score facility to the Indian centres.
- The loan towards LIC coverage must own assured give-up value.
What makes Loan against LIC Policy better than others?
The LIC policy loans have several benefits over different loans
- There is not any Guarantor or Security required for purchasing a loan from LIC.
- You can flexibly repay your loan interest and main amount.
- LIC offers a very decreased Interest Rate amount.
- Available at all nearest bank departments where you stay.
Essential Documents
You must post the following documents even as you are taking a loan towards the existing insurance policy
- The official record of the coverage
- Properly filled out the application form except for the passport-size picture.
- ID Proof- PAN Card, Aadhar Card, etc
- Address proof- Electricity Bill, Voter Card, Aadhar Card, etc
- Income proof- Salary slips, bank A/C details
- Premium paid receipt
Loan against LIC Policy Application Process
Here’s the way to apply online for a loan against the LIC policy
- To create an account, go to the LIC e-Services Portal and pick out “Don’t Have an Account? The “Sign Up” button.
- To sign on for LIC eServices online, fill out the necessary records.
- You can whole the registration procedure by deciding on a password after clicking “Proceed” to start the registration manner. To log into your account, you may either create a User ID or use your electronic mail or cellular tool.
- You can get access to your coverage information as well as the array of eServices provided via LIC after effectively logging in.
- Verify whether your insurance coverage qualifies for a loan secured through a LIC policy.
- If so, you will be able to view the loan’s terms, conditions, interest fees, and different capabilities online.
- You may want to ship your KYC files to the local LIC Office or upload them after submitting the application with a view to execute your loan request.
Conclusion
Individuals going through problems due to any monetary disaster can avail of a loan towards the LIC policy. It has numerous benefits, like low-interest rates and a lower repayment burden. If you’re in an economic disaster and want a loan, you may keep in mind a loan against the LIC policy. However, communicate with an LIC agent to get all the targeted records. You should also check if you can pay off the loan without introducing a financial burden.
