How To Take an Online Loan or repay, loan or loan interest for your existing LIC Policy – Complete guide. LIC of India has introduced a new facility to avail online loan from your LIC policy through LIC’s Premier services. The new facility also allows you to repay your existing loan and loan interest, with out visiting the branch office. Introduction of this facility can be called revolutionary as it offers a great degree of convenience to the customers of LIC of India.
Online loan from your LIC policy – important things to know
- Online loan can be availed only by policy holders who are already registered for LIC’s Premier services. Read more on LIC’s Premier services and how to register for it.
- In order to avail first loan from your registered LIC policy, you will have to physically submit loan papers and the policy document at the branch office, after registering through the portal. Subsequent loans can be availed with out any branch visit.
- Further loans can be processed online even if the previous loan is taken offline.
- All LIC policies are not eligible(Term insurance, ULIP etc.) for loan and you will have to check the loan eligibility of the policy in the policy bond.
- Loan is generally available only after three years of premium payment.
- Minimum period for loan interest is 6 months and if you repay the loan before six months, still you will have to pay an interest for 6 months.
- First interest payment is to be done on the next policy anniversary or on the date of attaining 6 months after availing the loan, which ever is earlier.
- Loan amount available will be limited to the 90% of the surrender value of the policy as on the date of availing the loan.
Online Loan and interest repayment for LIC Policies – Things to know
- Online Loan repayment and loan interest payment is available for all existing loan holders. Both registered as well as non-registered portal users can use this facility for their existing loans.
- Non-registered policy holders will have to use ‘Pay direct’ link provided at LIC’s Portal.
- Even though non registered policy holders can use on-line method of loan repayment, it is always advised to register their policies for premier services. Check this guide on how to register for LIC’s premier services.
- Part payment of the principle amount or interest of your loan is also possible while paying online.
Avail online loan from your LIC policy – Steps involved
- Policy holder can access the link for processing online loan either after logging in through e services portal or from the direct link provided at the portal.
- Give consent for agreements by ticking the box provided, after reading the information provided
- One time password (OTP) will be send to the mobile number and e-mail id of the policy holder. Use the OTP to complete authentication process.
- Select the policy for availing the loan from the list of eligible policies to get available loan and interest details.
- Full or part loan can be applied as needed subject to the maximum eligible amount. Once this process is completed, loan papers will be available.
- Submit duly signed Loan documents along with policy bond and NEFT details (of your bank account) at the nearest branch office (For First loan only).
- Loan amount shall be credited to your bank account once the process is over.
Avail online loan from your LIC policy – few more important points to remember.
- Your browser need to be compatible for online loan processing. If you find any difficulty while trying the process it is advisable to check your browser and update it.
- Online loan request will get automatically cancelled if the documents are not submitted at the branch office within four days.
- If you have to take loan from more than one policy, You will have to repeat the steps 4 to 7 for each policy as mentioned earlier.
Advantages of availing loan against LIC Policy
- Fast Processing of loan. Very handy in case of emergencies.
- Interest rate is cheaper than most personal loans and loans against other assets.
- No credit score or rating is required.
- Only security needed is the Policy document which is already available.
- Flexibility to repay loan or interest in full or part any time before maturity without any additional costs.
- Principle loan amount need not be paid if interest is paid promptly and can be deducted from maturity amount of the policy.
- LIC policy revival and late fee online calculator
- LIC premium payment methods- online and offline
- LIC e services and premier services – complete guide
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.