Should I take a loan with LIC policy?, Can be taken in banks and financial institutions, Loans are available at low interest rates, It is better to take it in LIC itself – Hey Looters, DealsExport is back with List of All the important Personal Finance Tips to Get Loans, hope you are doing well and enjoyed our previous Free Recharge Tricks/Deals. OK let’s explore Today’s Topic.
LIC Policy: Nowadays Most Of The People Are Taking Policy From Indian Life Insurance Company LIC To Get Life Insurance. Many People Don’t Know That Those Who Have This LIC Policy Can Take Loans By Canceling Their Policy. But, There Are Some Rules For Taking This Loan. Before Taking A Loan With LIC policy, it is Better To Know The Rules And Regulations Applicable To It.
LIC Policy: Loans Are Taken From Banks And Other Financial Institutions When Any Need Arises. However, For That, Some Collateral Is Mandatory. Banks Give Loans Without Any Collateral Only In Some Special Cases. Financial Institutions Tend To Give Mostly Collateral Loans. Because The Risk Is Considered Low If The Borrower Defaults. Mainly Banks Grant Loans By Putting Fixed Deposits, Houses And LIC Policies As Collaterals (Loan On Lic Policy Rules). Many People Take Loans in This Way. However, It Is Good To Keep Some Things In Mind While Taking Loans Through LIC Policies.
When The House Or Fixed Deposit Is Not Available To Invest In The Bank, Loans Can Be Taken By Showing The LIC Policy. This Is The Easiest Way To Take A Loan When There Is An Emergency. Along With Banks, Life Insurance Corporation of India (LIC) Also Gives Loans To Policy Holders Against Their Policies (Loan Against LIC Policy As Collateral). Interest Rates Are Also Low For Any Collateralized Loans. Interest Rates Are Lower When Taking A Loan With an LIC Policy, So Repayment Becomes Easier.
Things To Remember
- In Case Of Sudden Death Of The Policyholder, if The Loan Is Taken With LIC Policy, The Entire Policy Money Will Not go to the nominee. From That, The Bank Will Receive The Loan Amount. The Remaining Cash Goes To The Nominee.
- Some Financial Institutions Are Reluctant To Give Loans On Old Policies. They Suggest To Take A New Policy And Apply For A Loan. Taking A Policy Only For Loans Like This Is Not The Right Method.
- Choose The Lending Institutions That Take Your Policy As Collateral.
- In Case You Want To Show LIC Policy As Collateral, It Is Better To Take Loan From LIC Instead Of Going To Banks And Other Financial Institutions.
- LIC Will Grant The Loan By Calculating How Much You Have Paid So Far And How Many Premiums You Have Paid.
- A Loan Can Be Taken Up To 90 Percent Of The Surrender Value Of The Policy. For Example, If Your Policy Surrender Value Is Rs.5 Lakh, You Will Get A Maximum Loan of Rs.4.5 Lakh.