Other Useful Policy Utilities
Explore our other specialized financial tools for LIC policyholders.
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Surrender Value Calculator
Calculate cash value if discontinued after 2 years
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Compare Top LIC Plans
Side-by-side comparison of 936, 945, 914, 933
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Human Life Value (HLV)
Family financial protection gap analysis
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Late Fee & Revival Tool
30-day grace period & penal interest check
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Calculate Top LIC Policies
Directly evaluate premiums and maturity returns for popular plans.
Frequently Asked Questions on LIC Policy Loans
Know your rights, interest schedules, and loan repayment options.
Q1: How much loan can I get on my LIC policy?
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You can borrow up to 90% of the cash surrender value for active in-force policies. For reduced paid-up policies, the loan limit is up to 80% of the surrender value.
Q2: What is the interest rate charged by LIC on policy loans?
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The current interest rate is approximately 9.5% per annum, payable half-yearly. It is significantly cheaper than personal loans or credit card borrowing.
Q3: Do I have to repay the loan principal during the policy term?
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No! One of the biggest advantages of an LIC policy loan is that you are not required to repay the principal during the policy term. You can choose to pay only the interest half-yearly, and the principal will be adjusted against your maturity or death claim.
Q4: How fast is an LIC policy loan disbursed?
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LIC policy loans are typically processed and credited directly into your bank account via NEFT within 2 to 4 working days after submitting the original policy bond and loan application form.