Loan against Insurance Policies

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Loan against Insurance Policies

To meet contingencies and/or any personal need but not for speculative purposes.

Features

  • Avail Loan up to 85% of surrender value of the policy. No ceiling on maximum loan amount. · Both Demand Loan and Overdraft Facility as per your need.
  • Low interest rates, charge on a daily reducing balance.
  • Loan processing charges: 0.35% of loan amount with a minimum of Rs. 500/- and Maximum of Rs. 2,500/- plus applicable GST
  • No prepayment penalties.
  • Margin:
    • Loan tenure upto 12 months - 15% Margin
    • Loan tenure upto 24 months - 25% Margin
    • Loan tenure upto 36 months - 30% Margin.
  • Security: The policy should be assigned in favour of the Bank.
  • Availability: Through Branches only.
  • Interest Rate: 2.50% over
  • Please refer the interest rate page

Eligibility

  • An individual applying for a loan should be at least 18 years old.
  • The policy has not been issued under the Married Women’s Property Act, 1874.
  • The policy stands in the name of the borrower only. No third-party Insurance Policy to be admitted as security.
  • The policy is in force and the insurance premium has been paid upto date.

Eligible security

  • Loans can be granted against the security of life insurance policies issued by
    • (a) Life Insurance Corporation of India,
    • (b) Department of Post Offices/ India Post,
    • (c) SBI Life Insurance Company Ltd.,
    • (d) HDFC Standard Life and
    • (e) ICICI Prudential Life Insurance.

Repayment

  • Loans should be repaid within 3 years.

Last Updated On : Tuesday, 24-01-2023

Interest Rates

8.50%* p.a. onwards

w.e.f. 05.04.2024

*T&C Apply.

 

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