CIBIL Score: Whenever you take a loan, the first thing the bank checks is your CIBIL score. The higher your CIBIL score, the better. It is equally easy for you to take a loan, but if you take this type of loan from the bank, then you do not need to show your credit score on it. Besides this, this loan is also quite cheap.
New Delhi: To meet the sudden need of money, people either take the help of a close one or choose the option of personal loan. In personal loan they do not need many documents and the work is done quickly.
But to take a personal loan, it is very important for you to have a good CIBIL score. Apart from this, its one draw back is that you have to pay more interest in it.
But if you have got a policy in Life Insurance Corporation of India (LIC), then you also have a better option of loan because you can take a loan against this policy also.
The good thing about this loan is that it does not affect your CIBIL score. Also, the interest rates are also lower than personal loans. Apart from this there are many other benefits also. Know about it here.
Eligibility for taking loan
This loan taken against the policy is a secured loan because during this your insurance policy is pledged as security. The condition for taking loan is that you should have LIC policy.
You must be at least 18 years of age and have been paying the annual premium for that policy for at least 3 years. Only after this you will be eligible to take that loan.
How much amount is available as loan
The amount of loan you will be offered depends on the surrender value of the LIC policy. If an insured surrenders the policy before its maturity, the insurance company returns a fixed value to him, which is called surrender value.
Typically, the loan amount is up to 90% of the policy value. For paid-up policies, this amount is up to 85% of the policy value. The interest rate on this loan can be up to 10-13%, which is lower than a personal loan.
Installments can be paid as per convenience
One advantage of this loan is that you do not have to worry about paying EMI every month on this loan. As the money gets deposited with you, you can pay the installments accordingly.
But interest will keep getting added to it. However, if you do not repay the loan, then on maturity of your policy, the loan amount is deducted along with the interest and the remaining money is given to you.
You can apply in this way
To take loan against policy, you can apply both online and offline. For offline, you will have to go to LIC office and apply for the loan along with KYC documents.
To apply online, register for LIC e-services. After this log in to your account. After this, check whether you are eligible to get the loan to exchange your insurance policy or not.
If yes, then read carefully about the loan terms, conditions, interest rates etc. After this submit the application and upload the KYC documents online.
