How much loan can I get against my LIC policy?
Up to 90% of the surrender value for in-force policies (85% for paid-up policies). Your policy must have completed 2 years' premiums to have surrender value. Use the calculator above with your surrender value.
What is the interest rate on LIC policy loan?
Currently around 9.5% per annum, payable half-yearly. It's usually cheaper than personal loans (11–18%) and requires no credit check, income proof or processing fee.
Do I have to repay the LIC policy loan?
Repayment is flexible — you can repay principal anytime, pay only interest, or let the loan + interest be deducted from the maturity/death claim. But unpaid interest compounds, so paying at least the interest is wise.
How fast is LIC loan disbursement?
Usually 3–7 working days after submitting the loan application, policy document and KYC at your branch (or online via LIC portal for pre-approved policies).
Which LIC policies are NOT eligible for loan?
Pure term plans (no surrender value), most ULIPs, and policies where 2 full years' premiums are not yet paid. Money-back, endowment and whole-life plans generally qualify.
