'LIC Policy Loan' (225 Words)

In LIC, at present loans are granted on unencumbered policies up to 90 percent of the Surrender Value under policies which are in force for the full sum assured and up to 85 percent of the Surrender Value on policies which are paid- up for a reduced sum assured. The minimum amount for which a loan can now be granted under a policy is Rs. 1000/-. The rate of interest charged at present varies from 9 percent to 12 percent per annum payable half- yearly depending upon the type of plan. The terms and conditions printed on the policy bond reveal whether a particular policy is eligible for a loan.

Loans:

• Loans are granted on policies to the extent of 90% of Surrender Value of the policies which are in force.
• Loans are granted on policies to the extent of 85% of the Surrender Value in case of policies which are paid-up, inclusive of the cash value of bonus.
• The rate of interest charged at present varies from 9 percent to 12 percent p.a. payable half-yearly.
• Loans are not granted for a period shorter than six months.
• The Conditions and Privileges printed on the back of the Policy Bond states whether a particular policy is with or without the loan facility.