LIC Loan Against Insurance Policy Calculator
Access quick liquidity using your insurance policies as collateral. Calculate your policy's current surrender value, model maximum loan limits up to 90% LTV, and estimate the 9.5% p.a. interest compounded half-yearly.
₹84,923
Equivalent to 90% of surrender value.
• Policy remains fully active during the loan term.
• Repayment is flexible: pay interest half-yearly, and the principal will be settled from maturity/death claim proceeds.
LIC Policy Loans: Guidelines & Actuarial Rules
An **LIC Policy Loan** is a highly efficient credit facility provided by the Life Insurance Corporation of India. It permits policyholders to access cash liquidity by borrowing against the accumulated **Surrender Value** of their active life insurance plans (such as endowment or whole-life policies). This loan represents a secured credit line, meaning you do not undergo extensive credit score evaluations or CIBIL screening, and your active life insurance coverage remains **100% active** during the loan period.
Lending LTV Slabs: Policy Standing Rules
The maximum amount you can borrow depends directly on your policy's current active status and standing:
| Policy Standing Status | Maximum Loan Limit (LTV) | Lending Features |
|---|---|---|
| In-Force Policy | 90% of Cash Surrender Value | Full coverage active, standard mode rebates applicable |
| Reduced Paid-Up Policy | 85% of Cash Surrender Value | Reduced sum assured death cover, no future premiums required |
| Lapsed Policy (Under 2 Yrs) | 0% (Not Eligible) | Policy has not acquired cash value yet. Pay premiums to reach 2 consecutive years. |
Tax Benefits & Settlement Mechanics
LIC policy loans operate under highly flexible tax and settlement structures matching standard financial planning rules:
Automatic Payout Deductions
You are not legally forced to repay the loan principal during your policy term. If left unpaid, the outstanding principal + accrued interest will be simply deducted from your final tax-free maturity claim or death claim proceeds.
Zero Processing Fees & CIBIL Checks
Because the loan is fully secured by your policy's cash reserves, LIC charges zero processing fees. In addition, there is no CIBIL credit score check or income proof documentation required for approval.
Frequently Asked Questions (FAQs)
Which LIC policies are eligible for securing a policy loan?
What is the minimum premium payment duration required to get a loan?
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