LIC Loans – Loans at low interest rate for LIC Policy holders

We can’t say when we need money. But we can say that Loans without any processing charges, verifications, surities, delays, hypothecation and high interest rates is difficult to get. But if you are a LIC Policy holder getting a personal loan means just taking a hand loan from your friend.

LIC Loan - Loans at low interest rate for LIC Policy holders

If you have LIC Policy then first try for loan against that policy. Life Insurance Corporation Policy holder can avail the loan facility by submitting his/her Policy document.

How to get the LIC Loan

1.Submit your LIC Policy Document at the branch where you hold the LIC Policy.

2.Instantly (within hour) you can receive the cheque. Some times they may send through Post. But if you need amount immediately you can receive cheque by hand by proving your identity. Ofcourse it is under descretion of concerned manager.

Points to be remembered before opting for LIC Loan

1.As on today Rate of Interest is 9% per annum. You may observed that interest rates are hiking now a days frequently due to the guidelines of RBI in view of inflation. But 9% is very low rate of interest comparing to other financial institutions. It means 0.75% per month.

2.Interest calculated twice in a year. That means for every six months.

3.There is no Fixed EMIs for Repayment. You can pay as much principal as you can.

4.Interest calculation will be done on outstanding to be paid principal. So if you pay Principal frequently your Interest amount will reduced.

5.If you are unable to pay the principal, pay only interest, principal amount will be adjusted at the time of maturity of your policy.

6.Online payment facility not applicable for loans repayment, you should pay the amount at the Loan receiving branch only.

7.After completion of your repayment, you receive your policy document submitted at the time of receiving a loan.

8.Loan Amount eligible can known at the branch where you hold the Premium or Internet Account.

Related : LIC Loans EMI, Principal, Interest Calculation Procedure

Most of LIC policy holders do not have awareness about this loan facility. They can avail this facility for their personal loan needs like children education, Marriage, House Building, Medical treatment etc. for low interest rate.

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  1. Sunitha says:

    Can i get the loan very next month of making the LIC policy

    1. Vaishali says:

      Sunitha, it depends upon policy and policy amount you paid till date. Consult your nearest LIC Loans section employee for accurate amount.

  2. Sushil says:

    No Sunitha you cannot. The eligible loan amount is calculated as 90% of your policies “surrender value”. The “surrender value” of your policy comes into effect only after you have paid 3 (three) full year premiums for the policy, hence you are not eligible for a loan after 1 month of its inception as it would not have any surrender value.

  3. Hari Dey says:

    Hi Team,

    Can I get a home loan from LIC for purchasing a flat in Kolkatta.

    Hari Dey
    Contact No:07875067934

  4. Deepika says:


    Can I get LIC home loan against my LIC policy?

    1. Vaishali says:

      For LIC Home LIC policy will not be considered for loan. Like any other Housing finances LIC Housing finance also asks the required docs.

  5. YOGESH V. GUJARAN says:

    I have to pay Loan Interest on LIC of India online, How ? Can I get a tip

    1. Vaishali says:


      As far as i know, Loan & Int. payment can be done only in home branch.

  6. Sunila says:

    I have a loan against lic. in 2010. Giving interest every year . Can i take more loan againt that.

    1. Vaishali says:

      No Sunila, you need to clear existing loan.

  7. Siddu says:

    Hi this is siddu from bagalkot, govt employee I have four( three r jeevan anand and one is money back polycy) lic policy and sum assured is
    800000, I m deducting monthly around 2400 rs from my salary from last 5 years, so I want personnel laon, how much of personn el loan I may get from lic. ,

  8. Murugesan.U says:

    Dear sir,
    I have 4 policy (jeevan tarang) five years paid installment premium aprox 2.5lake so can i get personnal loan against my policy?which amount i can get?

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