Personal Loan

How To Avail LIC Personal Loan At Very Low Interest Rates?


LIC is India’s biggest life insurance company, and it has several financial products. It caters to the life insurance needs of all its customers across the country. To avail LIC Personal Loan at low-interest rates, it is important to ensure that you fulfil the eligibility criteria to be able to obtain this loan from LIC Insurance or through any other source. A personal loan can be availed by both salaried individuals and self-employed professionals to fulfil any personal requirement, such as renovation or renovation of their house, purchase of a luxury car, and so on. So, read through the following article on how to apply for LIC Personal Loan at low-interest rates and know about the various aspect of LIC personal loans

What is the meaning of a loan against LIC insurance?

Taking a loan against LIC insurance is a type of secured loan offered by various banks, NBFCs and private companies. As a policyholder, you can avail personal loan against the policy’s surrender value and need to deposit your LIC policy as collateral. The LIC Personal loan is offered at a low-interest rate.

You can take a personal loan against some of these popular LIC policies:

  • Jeevan Pragati
  • Jeevan Labh
  • Jeevan Lakshya
  • Limited Premium Endowment Plan
  • New Endowment Plan
  • Jeevan Rakshak
  • New Jeevan Anand
  • Single-Premium Endowment Plan

Eligibility for LIC Personal Loan

You need to fulfil a few eligibility criteria to borrow a personal loan against LIC Policy. These include

  • The borrower should have a regular salaried job and regular income.
  • The borrower should be an Indian citizen, and he/she should be between 18 years and 60 years of age.
  • The applicant must have a valid bank account in any one of the following banks – SBI, HDFC Bank, ICICI Bank, Axis Bank or RBL.
  • This insurance must be entirely paid for for a minimum of three years. 
  • The borrower should have a credit score of 720 or more.
  • The LIC policy should not be Unit-Linked Insurance Plan (ULIP) or Term Insurance Policy.

Documents Required to avail an LIC personal loan

The following documents are required:

  1. Copy of PAN Card or Voter’s ID card and copy of PAN Card of the Spouse 
  2. Latest Passport Size Photo
  3. Address Proof- Passport, Telephone Bill, Ration Card, Driving License 
  4. Employment Proof- Form 16 or Income Tax Return Form 16A 
  5. Bank Statement- Latest 3 months 
  6. KYC Documents (anyone)- PAN Card, Aadhar Card, Voter’s ID card 
  7. Details of Bank Savings Account 

How to apply for an LIC Personal Loan?

Here are the complete steps you can follow to apply for an LIC personal Loan.

Step 1: You can find a link to register on the LIC website’s home page.

Step 2: Select Customer Portal by clicking. Select the link for New User. Existing registered users only need to log in.

Step 3: You will need some personal information and policy details, such as your passport number, Aadhaar number and PAN number, to register on the website. The specifics should line up with your policy’s specifics as well.

Step 4: Following registration, access the LIC client portal.

By signing up for LIC Premier Services after logging in, you can submit an online loan application for LIC.

Step 5: Proceed to Service Registration. Then select Service Request. Under this tab, check for Premier Services Registration to register for LIC Premier Services or LIC personal loans.

Step 6: The automatically generated registration form must be downloaded, signed, scanned, and uploaded to the site. For further identification, provide a scanned copy of your passport, Aadhar, PAN or passport.

Step 7: You should gain Premier Services approval in a few days or weeks.

LIC Policy Interest rates

In comparison to regular personal loans, LIC personal loan interest rates are low. The current LIC personal loan interest rate ranges from 9.00%-36.00% and can depend on the lender. You can get a loan on your insurance policy from LIC or other lenders like SBI, HDFC Bank, Axis Bank, and others and pay less than for a personal loan. Here is the starting interest rate of personal loans offered by some of the top lenders:

  • Starting From 14.80% – LIC Housing Finance
  • From 13% – Bajaj Finserv
  • From 10.75% – Kotak Mahindra Bank
  • From 10.25% – Axis Bank

Loan Repayment

Loan payments on LIC policies can be made within six months and maximum up to the policy’s maturity. LIC of India loan repayments does not take the form of EMIs, which gives you more flexibility. 

  • LIC loan interest payments can be made online with the principal payment.
  • At maturity, the claim amount will cover the principal and interest amounts.
  • You can pay interest for a few years and then repay the principal amount when you have excess funds

Factors Affecting Personal Loan Interest Rates

Personal loans are unsecured loans, meaning they do not need any security as collateral. The lender determines the interest rate, but some factors can affect it. These factors include

  • If the applicant has a low income, he or she will generally receive a higher interest rate from a lender.
  • People who work with prestigious companies and have stable employment histories may be able to obtain lower rates on personal loans.
  • Lately, a good relationship with your insurer-paying your policy premiums on time-could makes all the difference.
  • The amount you have applied for
  • Repayment time


In conclusion, an LIC Personal Loan can be availed without any collateral and with the lowest interest rates on offer. To apply for an LIC Personal Loans, you need to have an LIC policy. You can take out a loan against your life insurance policy from LIC or another reputable private insurer and get up to 90% of the surrender value as a loan. . It is a great financial solution for all your personal needs. So it’s time to check out the Piramal Finance website to apply for your own LIC Personal Loan now!