Can I Take Loan Against LIC Policy & Check Loan Status Online
Do you need a personal loan? Do you know that you can take loan against your LIC policy? In this article I will be guiding you how to get loan against LIC policy online. Although LIC of India has started this online facility very recently.
The process of applying for Loan Against LIC Policy has become very easy these days and one can easily check status online and through sms also. Most of the LIC policy related things are taken care by your nearest LIC office or branch. But with the launch of this LIC loan facility online, one can save time on the process.
Is Loan Against LIC Policy Better Compared to Personal Loan
Well, if you have the need of money to fund an emergency priority then it is always good apply for loan against fixed deposit or lic policy. The reason is very simple and that is the lowest interest rate.
If you approach for personal loan from any bank these days, then they will ask you are higher interest rate from 14% onward.
What is the rate of interest on loan against LIC policy?
The interest rate for loan against LIC policy is 10% which was 9% last year. It’s clear that compared to other popular personal loans like HDFC personal loan it is far cheaper. Interest is payable in every 6 month.
In that context, applying for personal loan against your insurance policy is a good idea as you are actually taking loan from your own money with a lowest interest rate. And the prepayment clauses are also very simple in this kind of situation.
Highlights of Loan against LIC policy
# The maximum loan amount available under the policy is 90% of the Surrender Value of the policy. In Case of paid up policies 85% of the surrender value and cash value of bonus is the maximum that can be loaned in.
# The rate of the interest applicable on the loan is 9% and the minimum period loan is given if for 6 months. Make sure you have read the complete terms & condition and also find out the latest interest rate and rules before applying for loan against lic policy.
# The minimum loan period can be granted as 6 month. And your policy should be minimum 3 years old or paid at least 3 annual premiums.
# In case death or policy maturity during the first 6 month from the date of loan, then the interest need to be paid till the date of death or maturity.
# The original policy documents need to hand over to LIC of India as security or loan guarantee.
# You can avail the second loan against the same policy while the first loan has the not been repaid. However, the cap of 90% of Surrender value shall apply to the combined amount.
# You can avail the loan against LIC policy from other banking institutes also (like banks). However, the quantum of loan availability may be less and also they may charge higher interest rate than the LIC.
How to apply Loan Against LIC Policy Online
If you want to take a loan against your LIC policy then it’s always better to go to the nearest LIC branch office and ask for the same. The detailed process will be covered in a separate article.
In case you are looking for housing loan from LIC of India, then you have to visit LIC Housing Finance company for that which is not discussed here. But we are talking about the online process of applying loan against LIC policy. Here is the step by step guide below.
Step #1: First of all you have to visit LIC of India official website https://www.licindia.in
Step #2: Look for the “Online Loan” button on the home page itself, which is available under “Online Services”.
Step #3: As soon as you click on the link, it will open a new page where you will find 2 options
- Loan Payment / Loan Interest Payment
- Online Loan Request
Step #4: As we are applying for loan, choose the 2nd option and click on the blue button “Through customer portal”. Then you have to provide your LIC online portal user id and password. If you have not register your policy to LIC website, then do it first.
Step #5: You have to register first to request for an online loan. However, to repay interest and principal, you either can pay with or without login.
Steps To Check LIC Loan Status Online
So, the process of checking your loan application status or loan closure status online is very easy in case of lic policies. Let’s follow them with the below step by step guide.
- You have to register for LIC of India E Services and for that you need the lic policy number against which you have applied for loan. With that also you have to provide your mobile number, email address and few more personal information.
- Visit www.licindia.in website and click on e-services button in the left side of the home page. Then click on New User button and then provide all necessary information to register your policy.
- After successful registration, you have to login with your userid and password to access the dashboard area.
- In the left side menu, find out Loan Status link and click on the same to know your lic loan status.
You will find all your policies listed on that page. Now select the policy against which you have applied for loan. And then click on the policy status button to get the latest status of your lic loan. If you have any doubt regarding the process of loan against LIC policy online then write a comment below and share your question.