See how much LIC will lend against your policy, what the interest costs, and how much you save versus a personal loan — while your policy stays fully alive.
LIC policy loan rates have typically been in the 9–10.5% range. Check the current rate when applying.
Maximum loan you can take today
₹1.92 L
Estimated surrender value
₹2.14 L
Interest per year at 9.5%
₹18,276
LIC lends up to ~90% of surrender value (₹2.14 L). Your policy and life cover of ₹10.00 L continue unchanged.
LIC policy loan @ 9.5%
₹18,276/year interest
No credit check · no CIBIL impact · flexible repayment
Personal loan @ ~14%
₹26,933/year interest
Credit check · EMIs mandatory · processing fees
You save roughly ₹8,657/year in interest with the policy loan.
The one real risk: if unpaid interest plus principal ever exceeds the surrender value, LIC can foreclose the policy. Pay at least the interest (billed half-yearly) and this never happens. Any outstanding loan is simply deducted from the maturity or death claim.
Are you an insurance agent?
A customer asking for money is a customer about to surrender. Show them the loan option instead — and keep the policy alive. InGrowIQ keeps your whole book organised for moments like this.
Try InGrowIQ freeDisclaimer: Indicative estimates for traditional LIC endowment-type plans. Actual loan eligibility is 90% of the surrender value LIC quotes for your specific policy (85% for paid-up policies), and the interest rate is set by LIC at the time of the loan. ULIPs and term plans generally cannot be borrowed against. Confirm exact figures with LIC before applying.