Loan Against LIC Policy (2026): Interest Rates, Eligibility & Process

In a world of 18% interest credit cards and 14% personal loans, your LIC policy offers a hidden escape. You can borrow against the 'Surrender Value' of your policy at much lower rates (typically 9-10.5%).

Why Choose a Policy Loan?

• **No Credit Score Needed:** Since the policy itself is collateral, LIC doesn't care about your CIBIL score.
• **Lower Interest Rates:** It is one of the cheapest ways to get funds in India.
• **Quick Disbursal:** Online applications are often processed within 48-72 hours.
• **Policy Stays Active:** You don't lose your life cover; you just pay interest on the borrowed amount.

Eligibility Criteria

To get a loan, your policy must have acquired a 'Surrender Value.' Usually, this happens after paying premiums for at least 2 full years. Term insurance plans are NOT eligible as they have no surrender value.

How Much Can You Borrow?

Typically, you can get up to 90% of the surrender value for in-force policies and up to 85% for paid-up policies.

The Repayment Advantage

You can choose to pay only the interest and settle the principal amount at the time of policy maturity. This makes it a very low-stress debt option for emergencies.

*Ready to calculate your loan eligibility? Visit our [Loans Against Insurance](https://insurancesupport.online/loans) page or [Contact our Financial Experts](https://insurancesupport.online/contact) for a free calculation.*