Now you can apply for Loan against LIC Policy online. LIC has launched online policy loan option. Earlier in order to get a loan against LIC Policy, it was a compulsion to visit service branch as no online option was available. The cumbersome and manual process of loan application and repaying loan interest and repayment is now made online by LIC. Let’s take a look at How to avail Loan against LIC Policy Online.
How to avail Loan against LIC Policy Online?
The steps to follow in order to avail Loan against LIC Policy online is given below.
- Visit LIC Website https://www.licindia.in/ on the Home page you will find an option of “Online Loan” under Online Services section.
- Once you click on Online Loan Option you will be re-directed to another page. Here, you will find two options. One is for loan repayment of interest payment and Second is for submitting Online Loan Request.
- The online Loan request is through customer portal only. You need to register as a customer in order to avail this facility.
- In order to apply for Loan against LIC click on “Through Customer Portal” link. You will be redirected to login page. If you are registered user you can provide your LIC login, password and date of birth for authentication. Alternatively, you can also register on LIC portal from this page.
- Once you authenticate it will redirect to a page where the system will pick up the policy eligible for loan automatically. You need to just provide your Aadhaar Number and PAN number and click on proceed button to apply for a loan against LIC Policy.
Loan Approval and other details shall be communicated by LIC on your email address and Mobile number.
Features of Loan against LIC Policy –
- The maximum loan amount available under the policy is 90% of the Surrender Value of the policy.
- Under this facility system will select eligible policy automatically. However, to avail loan, you must be paid the premium for at least 3 years.
- You need to pay interest on loan half yearly.
- If you do not pay interest amount within 30 days from the due date, LIC reserves the right to foreclose the policy and settle the loan amount against the proceeds.
- Apart from LIC, you can contact other financial institutions and banks for a loan against LIC policy. However, amount sanction by a bank and other institutions will be lower and interest rate will be higher.
- Interest rate is 10.5% per annum.
- You need to submit original policy document as security.
Advantage of Loan against LIC Policy Online facility –
- Online Loan against LIC Policy is quick and convenient way under an emergency situation.
- No visit to LIC branch required. You just need the internet and registered account against your eligible policy.
- The interest rate is cheaper compared to personal loan.
- Repayment of the loan is also online on LIC portal which makes this option more lucrative.
- No Documentation is required only LIC policy is sufficient for the loan.
Limited loan amount and no tax benefit are negative sides of loan against LIC policy. However, if you are planning to take a personal loan you should look at loan against LIC Policy option.