How to Apply For Loan Against LIC Policy. Complete Details And Step-by-step Procedure

 Loan Against LIC Policy.
Image – LIC 

LIC is India’s most popular and most trusted Insurance provider. If there is any talk about an Insurance the first name that comes to everyone’s head is LIC. Such has been the legacy of the company that the term Insurance has been substituted by the name of the Company LIC. But that being said, still many people are unfamiliar with the fact that you can avail a loan against LIC policy. It is an easy procedure and with some of rules and guidelines followed you can easily get a loan against LIC policy.

In case if you never heard about LIC, it is the largest Insurance company in India which is owned by the Government of India. It offers you with all the major insurances. It is the most trusted Insurance company in India.

You might not be aware of the fact that you can avail loans pretty easily from LIC. You can easily apply online for loans against your LIC policy without any hassle and having to visit any office of the LIC. 

The interest of the loan is pretty low and you can avail a loan very fast by just following some of the rules of the company.

So let’s see how can you avail a loan against LIC policy with ease and without having to visit any branches or office of the Insurance Provider. 

Here I have covered every single policy of LIC from which you can avail the loan very easily, so make sure to read the article till the very last so that you can know how exactly can you avail the loan against the Lic policy.

Who Can Avail Loan Against LIC Policy

To avail a loan against LIC policy there are some of the eligibility criteria set the company. You must have to qualify for the same to get a loan against the Lic policy.

Here are the rules that you must fulfill in order to get the loan –

  1. You must be an Indian Citizen.
  2. Your age must be 18 yrs or more.
  3. You must have an existing LIC policy.
  4. You must have paid the premium of a minimum of three years of the existing policy before applying to avail the loan against Lic Policy.
  5. You can avail a loan up to 90 percent of the surrender value.
  6. If you’re holding a paid-up LIC policy then you can avail loan only up to 85 percent of the surrender value

Documents Required For Availing Loan Against LIC policy

To get the loan against LIC policy you must have to provide relevant documents as asked by the company. These documents are needed to verify before you are provided with the Loan.

Below are the relevant documents that you must provide while applying for the loan.

  • Application letter
  • Policy loan application
  • Address proof
  • Identity proof
  • Passbook of Bank account

Interest on Loan Against LIC policy

For every loan you avail, you are charged with interest. The same is with the LIC loan against Policy scheme. You have to pay some amount of interest for the loan that you avail. The interest rate is never fixed and every bank or financial institution has a different rate of Interest. So you must have to contact an agent or visit a branch nearest to you to get the complete details about the interest rate for the loan. As the rate keeps fluctuating proper knowledge about the rate can only be found in the LIC branches or from an LIC agent.

Benefits Of Availing Loan Against LIC policy

As we mentioned earlier LIC is the most trusted and popular insurance company of India. It has been one of the top companies in India. There are certain benefits that you’ll get when you avail the loan from LIC.

  • A low rate of interest
  • You get a loan against a surrender value
  • You get loans pretty easily and fast without any hassle.
  • You can get loan up to 90 percent of the cash value.

How to Apply for Loan Against LIC policy

Applying for Loan Against LIC policy is easy. You can apply for the loan online and without having to visit any branch. There are certain steps to be followed while applying for the loan and for your comfort we have discussed and provided all the steps to be followed for applying for the loan below. We have made a step by step guide so that you can apply for the loan with ease.

Step 1: Visit The Official Website

First of all, you need to visit the Official website of the company.

How to Apply For Loan Against LIC Policy. Complete Details And Step-by-step Procedure

Step 2:  Click on the Online loan 

After you visit the official website page, you need to find the Online Loan option under the Online Services section. Click on the Online loan option which will open a new page.

How to Apply For Loan Against LIC Policy. Complete Details And Step-by-step Procedure

Step 3: Select one of the policy loan Options

After the page loads here we will find three options. You can apply easily for loans from here and also you’ll find the option for loan repayment here.

How to Apply For Loan Against LIC Policy. Complete Details And Step-by-step Procedure

Step 4 : Register/ sign up

You’ll have to register/sign up for the loan on the official website. Enter all the necessary items and fill up the form to get registered and once you are registered online you are good to proceed the next step.
How to Apply For Loan Against LIC Policy. Complete Details And Step-by-step Procedure

Step 5: Register for Premier Services

You also need to register for the Premier services as it is mandatory before proceeding to download the Lic Premier services forms.

Step 6: Download the Forms

Now you need to download the LIC premier services forms as instructed in the website. Download and get a print out copy of the form. Most of the item in the form is already filled up and you just need to sign where it is needed. Check the filled items in the form before you proceed further.

Step 7: Scan and Upload Form along with the required documents

After you verify everything in the form as you think its good to go scan the form and other necessary documents and upload it on the website. Once you upload it, you will get registered in a while which will complete your LIC premier services. You can apply for the loan when the process is smoothly conducted and complete.


LIC being India’s largest and most trusted Insurance corporation house and Investment company is the best for you to avail a loan. All the services and charges are transparent and the loan procedure is really quick. All you need to do is have the relevant documents and provide all the necessary data required. You can easily avail the loan by following the necessary steps we provided you with. 

Here, we provided you information regarding Loan Against LIC Policy. If you have any questions or query or any other information related to this article, you can let us know by dropping a message through the comment box below. We wait for the feedback and suggestions from everyone reading this article. 

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