If your CIBIL score is below 600, you can secure a loan up to ₹5 lakh by leveraging your LIC policy as collateral. This type of loan is known as a secured loan, ensuring minimal hassles in approval.
Eligibility Criteria
✔ Loan available on Endowment Plans & Whole Life Policies.
✔ Minimum 3 years of premium payments required.
✔ Loan amount is 80-90% of surrender value.
✔ Example: If your surrender value is ₹5 lakh, you can get up to ₹4 lakh as a loan.
Application Process
✔ Apply at your nearest LIC office or via the online portal.
✔ Not all LIC policies qualify for this loan—only selected ones are eligible.
✔ Interest rates range between 10% and 12% for loans taken against LIC policies.
Opting for a secured loan against LIC policy can be beneficial, especially if your CIBIL score is low and traditional lenders might reject unsecured loans. 💰
About the Author
