LIC Loan Against Policy 2026: A Comprehensive Guide

A lic loan against policy can be a lifesaver in times of financial crisis, offering a quick and easy way to access cash when you need it most, with the Maturity (मैच्युरिटी) benefit still intact

In India, 2026, many individuals are turning to lic loan against policy as a means of meeting their financial obligations, with the added benefit of not having to surrender their policy, and still earning a bonus rate of ₹45 per ₹1,000 sum assured, as seen in Plan 715, and with the Premium (प्रीमियम) paid, the Sum Assured (बीमा राशि) is still guaranteed, and with our expert advice, you can make the most of this facility, and calculate the XIRR return, which can be around 5-6% per annum, comparable to FD and PPF rates

The lic loan against policy facility is available for most lic policies, including Plan 736, and the loan amount can be up to 80% of the surrender value, with an interest rate of around 9-10% per annum, which is comparable to bank loans from banks like SBI and HDFC, and with our lic loan against policy calculator, you can calculate the loan amount and interest rate, and make an informed decision, and also compare it with term insurance alternatives, which may not offer the same level of flexibility and liquidity

Eligibility Criteria for LIC Loan Against Policy

To be eligible for a lic loan against policy, the policy must have acquired a surrender value, which is typically after 3-5 years of premium payment, and the policy must be in force, with all premiums paid up to date, and the loan amount can be up to 80% of the surrender value, with an interest rate of around 9-10% per annum, and the loan tenure can be up to 3 years, with a maximum loan amount of ₹50,000, and with our expert advice, you can navigate the eligibility criteria and get the best possible deal, and also calculate the XIRR return, which can be around 5-6% per annum

• The policy must have acquired a surrender value
• The policy must be in force, with all premiums paid up to date
• The loan amount can be up to 80% of the surrender value

How to Calculate the Loan Amount

The loan amount can be calculated using our lic loan against policy calculator, which takes into account the surrender value, loan tenure, and interest rate, and provides a detailed breakdown of the loan amount, interest rate, and repayment schedule, and with our expert advice, you can calculate the loan amount and make an informed decision, and also compare it with other loan options, such as bank loans and personal loans, and with the Premium (प्रीमियम) paid, the Sum Assured (बीमा राशि) is still guaranteed, and the Maturity (मैच्युरिटी) benefit is still intact

• The surrender value is the key factor in determining the loan amount
• The loan tenure and interest rate also play a crucial role
• Our lic loan against policy calculator can help you calculate the loan amount

Comparison with Other Loan Options

The lic loan against policy facility is a unique offering that provides a quick and easy way to access cash when you need it most, with the added benefit of not having to surrender your policy, and with our expert advice, you can compare it with other loan options, such as bank loans and personal loans, and make an informed decision, and also calculate the XIRR return, which can be around 5-6% per annum, comparable to FD and PPF rates, and with the Premium (प्रीमियम) paid, the Sum Assured (बीमा राशि) is still guaranteed, and the Maturity (मैच्युरिटी) benefit is still intact, and for example, if you take a loan of ₹50,000 for 3 years, the interest rate would be around 9-10% per annum, and the total interest paid would be around ₹15,000

• The lic loan against policy facility is a unique offering
• It provides a quick and easy way to access cash when you need it most
• It offers a competitive interest rate compared to other loan options

Tax Implications of LIC Loan Against Policy

The tax implications of a lic loan against policy are relatively straightforward, with the interest paid on the loan being taxable, and the loan amount being tax-free, and with our expert advice, you can navigate the tax implications and make an informed decision, and also calculate the XIRR return, which can be around 5-6% per annum, comparable to FD and PPF rates, and with the Premium (प्रीमियम) paid, the Sum Assured (बीमा राशि) is still guaranteed, and the Maturity (मैच्युरिटी) benefit is still intact, and for example, if you take a loan of ₹50,000 for 3 years, the interest rate would be around 9-10% per annum, and the total interest paid would be around ₹15,000, which would be taxable

• The interest paid on the loan is taxable
• The loan amount is tax-free
• Our expert advice can help you navigate the tax implications

Conclusion and Next Steps

In conclusion, the lic loan against policy facility is a unique offering that provides a quick and easy way to access cash when you need it most, with the added benefit of not having to surrender your policy, and with our expert advice, you can make the most of this facility, and calculate the XIRR return, which can be around 5-6% per annum, comparable to FD and PPF rates, and with the Premium (प्रीमियम) paid, the Sum Assured (बीमा राशि) is still guaranteed, and the Maturity (मैच्युरिटी) benefit is still intact, and for example, if you take a loan of ₹50,000 for 3 years, the interest rate would be around 9-10% per annum, and the total interest paid would be around ₹15,000, and with our lic loan against policy calculator, you can calculate the loan amount and interest rate, and make an informed decision, and also compare it with other loan options, such as bank loans and personal loans

• The lic loan against policy facility is a unique offering
• It provides a quick and easy way to access cash when you need it most
• Our expert advice can help you make the most of this facility

Summary of LIC Loan Against Policy