Do you know that you can ask for a personal loan against your LIC policy? Have you ever taken personal loan from any bank in India? If you have done that then you might have aware about how much interest rate you have paid for the same. Personally I have also taken a personal loan from HDFC bank, but closed in after 1 year itself. Although I have not taken any loan from LIC of India, but I came to know that asking for a personal loan from LIC against your LIC plan is far better compared to applying for personal loan from a bank in India. Let’s find out the details below.
Loan against LIC Policy VS a Personal Loan from a Bank in India
The first think you have to understand that you are applying for loan from lic against your lic policy that you have purchased couple of year back. If you don’t have any LIC policy in your kitty then this article is not for you. Anyway, let’s find out the key highlights of this comparison.
1) As I have mentioned, you are actually taking loan from the money accumulated by paying the lic premiums regularly. That means the amount of loan is having a maximum limit of your accumulated money. But in case of a personal loan you are taking loan from bank money.
2) The interest rate in case of loan from LIC policy and the reason is also obvious as the loan is taken against your money only. But in case of personal loan from bank, the interest rate is very high. When I took personal loan from HDFC bank, I got it with an interest rate of 13.99% applying some corporate discount.
3) No credit history, no verification is require when you ask for loan against your lic policy. But if you have a bad credit score you may not get personal loan from bank.
4) Your personal loan eligibility from bank will be calculated based on the verification of your income, your credit score. But in case of lic the maximum disbursed loan can be up to 90% of the security value. Please verify the data with lic officials before applying for loan.
How To Apply a Personal Loan Against Your LIC Policy
The process of getting a loan against your lic policy is very simple. The very first criteria is you should have a lic policy before approaching the lic branch nearest your home & then follow the steps below.
1) Collect the loan application form and fill up the necessary details. Remember, all LIC policies doesn’t offer loan facility, so you should read your policy documents carefully before approaching for loan against lic policy.
2) Submit necessary documents like policy document, identity proof, address proof etc with the application form.
3) Wait for few minute as per the guidance of representative and your loan will be approved if things are fine.
Have you ever tried applying loan against your lic policy? In that case please share you latest experience and make this article worthy for our readers.