Loan Against Insurance Policy โ Surrender Value Based Credit
Apni traditional insurance policy (endowment/money-back/whole life) ko surrender karne ke bajaye, surrender value ka 85-90% loan facility le sakte ho.
Overview
Loan Against Insurance Policy (LAIP) ek facility hai jisme borrower apni traditional life insurance policy (endowment, money-back, whole life) ke surrender value ko collateral rakh ke loan le sakta hai. Policy issuer (insurance company) ya bank/NBFC yeh loan provide karte hain. Policy chalti rehti hai, sum assured aur bonus accrue hote rahte hain. Term insurance, ULIP plans typically eligible NAHI hote โ only traditional plans with surrender value.
Key Details
| Category | Detail | Description |
|---|---|---|
| Eligible Policy Types | Endowment / Money-back / Whole Life | Traditional plans only |
| NOT Eligible | Term insurance, ULIP, Pension plans | No surrender value |
| Loan Amount | 85-90% of surrender value typically | Insurer-specific |
| Tenure | Aligned with policy maturity | Cannot exceed policy term |
Note: Indicative figures from publicly available sources. Subject to revisions and lender/regulator discretion.
Eligibility
- Active traditional life insurance policy (3+ years premium paid)
- Policy must have acquired surrender value
- Policyholder + insured same person preferred
- Age: dependent on policy holder age
- Premium payment up-to-date
- No existing assignment on policy
Required Documents
- Original policy document (or copy)
- Premium payment receipts
- Identity + address proof
- Loan application form (insurer's standard)
- Bank account details
- Photographs
Specific documentation may vary. Verify with implementing authority/lender.
Application/Application Process
- Insurance company branch visit karo (your insurer's nearest office)
- Loan application form bharo + original policy submit karo
- Surrender value calculation (insurer's internal table)
- Loan amount sanction (typically 85-90% of surrender value)
- Policy 'assigned' to insurer as security (assignment endorsement)
- Disbursement to bank account
Key Benefits
- Policy intact โ sum assured + bonus accrue continue
- Lower interest rate than personal loans (typically 8-12%)
- Minimal documentation
- Quick processing (typically 3-7 days)
- Flexible repayment โ interest only, EMI, ya bullet at policy maturity
- No credit score check typically
๐ General Guidance Needed?
ProWiderKart facilitator se free advisory le sakte ho โ general information aur direction ke liye.
๐ฌ WhatsApp Free AdvisoryFrequently Asked Questions
Term insurance pe loan mil sakta hai?
Nahi. Term insurance me surrender value nahi hoti (it's pure protection). Only traditional plans (endowment, money-back, whole life) eligible hote hain LAIP ke liye.
Kab se policy loan-eligible hoti hai?
Generally 3 years premium payment hone ke baad surrender value acquire hoti hai. Policy ki specific terms verify karo (kuch policies 2 year me hi surrender value acquire kar leti hain).
Kya ULIP me loan facility hai?
ULIPs me technically loan facility available ho sakti hai but policy structure complex hai aur lenders typically prefer nahi karte. Most LAIP traditional plans pe focused hote hain.
Surrender value kaise calculate hoti hai?
Premiums paid + bonus accrued ka factor multiplied by surrender value table (insurer-specific). Generally early years me low (15-30%), later years me high (70-90%) hota hai.
Repayment kaise hoti hai?
Multiple options: (1) EMI based, (2) Interest only with bullet at maturity, (3) Loan + interest deduct from maturity proceeds. Flexibility insurer-specific.
Default karne pe kya hota hai?
Default ki situation me insurer policy surrender karke loan amount + interest recover kar sakta hai. Balance (if any) borrower ko milta hai. Policy benefits lapse ho jate hain.