Take A Loan Against LIC Policy For Extra Financial Help!

ByNafas
Loan Against LIC Policy-657f76a9

Sometimes problems occur in an untimely circumstance. Thus there is a product such as a life insurance policy to cover all the financial needs. Also, additionally, you have an option of taking a loan in opposition to the surrender value of your policy. Surrender value means the actual amount of money a policyholder will obtain at the time of access to the policy’s cash value. However, please note that you can only take a loan against LIC policy (Life Insurance Corporation of India) if your policy has obtained a surrender value.

Okay, So now that you know what a loan against LIC policy is, let’s understand why taking a loan against LIC policy is a better option than availing of other loans separately.

Why Borrowing A Loan Against LIC Policy Better Than Taking Other Loans?

These few pointers explain the benefits of taking a loan against LIC policy.

  • Lower Interest Rates:

The interest rates or EMI chargeable on loans against LIC policy are lesser than other kinds of loans in the market. Thus you take out a loan against policy to save quite a bit of money, especially in unfortunate situations.

  • Flexible Repayments:

In most cases, when individuals take out a loan, they repay the interest every month. However, when you take a loan against LIC policy, you can choose either to pay it back once or twice a year. Policy borrowers can make the repayment of principal at the end of the policy term or adjust the borrowed sum from their death or maturity benefit payout.

  • No Guarantor Or Collateral Need

Unlike other loans, such as gold and mortgage loans, you must provide a guarantor. Here, you don’t have to give collateral, security, or a guarantor to avail loan against LIC policy. Therefore no risk of losing your stakes to get extra finances.

So, these were the three main reasons for availing of loans against the policy. By taking other loans, you might face difficulty in the lengthy process, which might cost you more while availing of the loan. Thus take loans against the policy.

Next, check out the eligibility criteria for getting a loan against LIC policy.

Eligibility Criteria

Follow the points and know if you are eligible to get the loan against LIC policy So that you can apply immediately.

  • You must apply and own a LIC (Life Insurance Corporation) government policy.
  • The policy must not be a unit-linked insurance plan (ULIP) or term insurance policy.
  • The procedure requires acquiring a surrender value.
  • Individuals must be Indian residents/citizens.

These are some of the essential eligibility criteria. Also, if your policy lender asks for any other documents, you must submit them according to their specifications and conditions to complete the loan policy.

The Bottom Line

Thus, taking a loan against LIC policy is a much better option for individuals needing financial help compared to other secured loans. However, there is another service you can avail of to help yourself financially. Avail of an unsecured personal loan for an instant fund from Buddy Loan. You can avail of low-interest rates starting from 11.99% p.a. and get it with no additional costs or processing fee. Also, avail of the loan, with the benefits of instant and quick disbursal online.