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LIC policy loan

Borrow against your own LIC endowment, money-back, or whole-life policy at the published LIC rate (currently around 9–10% per year). No credit check; the policy itself is the collateral.

Policy loan calculator

Enter your policy details to see how much LIC will lend against it today.

Illustrative. Uses the standard IRDAI-regulated shape. Your plan's exact factor table may vary by ±5%. Per-plan overrides will land here once we extract brochure facts.

Your policy

yrs
yrs
yrs
Eligible policy loan
₹71,805
90% of surrender value (₹79,783)

Total premiums paid

₹1,32,500

Vested bonuses (so far)

₹1,17,500

Surrender value (basis)

₹79,783

Loan rate (LIC)

~9–10%

Half-yearly compounding

How it works

  • Eligibility = up to 90% of surrender value for in-force policies, 80% for paid-up policies.
  • Interest is charged half-yearly. You can pay just the interest, or let it compound and settle from claim proceeds.
  • If interest accrual ever exceeds the surrender value, LIC can foreclose the policy.
  • No credit check — the loan is secured against the policy itself.

Watch-outs

  • Effective cost is ~9–10%, comparable to a personal loan and higher than most secured options. Use only if cheaper credit isn't available.
  • Outstanding loan + interest is deducted from the maturity payout, which can dramatically shrink your final corpus.
  • Surrendering or letting the policy lapse with an outstanding loan triggers immediate netting against surrender value.
  • Doesn't apply to: term plans (no surrender value to lend against), most ULIPs, immediate-annuity plans.

Source: IRDAI regulations, current LIC loan rate notification, and product brochures at licindia.in.

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