LIC Loan Against Policy Calculator 2026

Find out how much money you can borrow against your active LIC policy. Check maximum loan limits and calculate your interest repayment schedule. Updated for 2026.

All LIC Plans Covered|Bonus Rates Updated 2026|PDF Report Download|100% Free & Independent|Verified by Financial Experts

Loan eligibility Inputs

Sum Assured (बीमा राशि)₹5,00,000

₹1,00,000₹50,00,000

Policy Term (अवधि)

Completed Years Paid (भुगतान के वर्ष)5 Years

1 Years20 Years

Annual Premium (वार्षिक प्रीमियम)₹25,000

₹2,000₹2,00,000

Plan Bonus Category

Eligible Loan Limit

Estimated Policy Cash Value₹72,400

Maximum Eligible Loan (90%)

₹65,160

Borrow up to 90% of the surrender value of your active policy.

Interest Schedule (9.50% p.a. simple)

Yearly Interest Cost:₹6,190

Monthly Interest cost:₹516

📋 LIC Policy Loan Guidelines & Rules

No CIBIL Check: LIC loans do not require credit scores or income proof because the policy bond itself acts as collateral. Approval is quick.
Repayment Flexibility: You only need to pay the interest half-yearly. You can repay the principal amount whenever you want during the term, or it will be deducted from your final maturity payout.
No Foreclosure: The policy will only run into foreclosure if the outstanding loan amount + accrued interest exceeds the surrender value. In this case, LIC terminates the policy to cover the loan.

Want a better life cover than traditional LIC policies?

Traditional plans offer 5-6% returns with low life cover. Compare pure Term Insurance plans starting from just ₹440/month for a ₹1 Crore cover.

Compare Term Plans

LIC Loan Against Policy Calculator

Use this tool to calculate your eligible loan amount against your LIC policy, along with interest rates and EMI estimates. This calculator requires JavaScript to function.

💡

How much loan can I get on a 5 Lakh LIC policy?

The loan limit depends on the policy's surrender value. If you pay an annual premium of ₹25,000 for 5 years on a ₹5 Lakh policy, the surrender value is ₹82,850. You can borrow up to 90% of this amount, which equals ₹74,565. The annual interest cost at 9.5% p.a. simple interest is ₹7,084.

Benefits of Taking a Loan Against LIC Policy

Borrowing against your insurance policy is one of the easiest ways to meet short-term cash emergencies. Unlike personal loans, LIC loans:

Have lower interest rates (9.5% p.a. vs 11% - 18% p.a. for personal loans).
Require no credit checks, making it accessible to individuals with poor credit.
Offer highly flexible repayment options with no prepayment penalty fees.

हिं

एलआईसी पॉलिसी पर लोन कैलकुलेटर — LIC Policy Loan in Hindi

एलआईसी पॉलिसी लोन कैलकुलेटर (LIC Policy Loan Calculator) 2026. अपने पॉलिसी के कैश वैल्यू पर मिलने वाले अधिकतम ऋण और उस पर लगने वाले ब्याज की गणना करें।\n\nनियमों के अनुसार, पॉलिसी पर लोन केवल तभी मिल सकता है जब पॉलिसी ने सरेंडर वैल्यू प्राप्त कर ली हो (कम से कम 2 साल का प्रीमियम भुगतान)। आप पॉलिसी के सरेंडर वैल्यू का 90% तक लोन के रूप में प्राप्त कर सकते हैं। वर्तमान में एलआईसी इस लोन पर 9.50% वार्षिक साधारण ब्याज लेता है, जिसका भुगतान आपको हर 6 महीने में करना होता है।

LIC Surrender Value 2026 RulesRead article →LIC Plan-wise Bonus Rates 2026Read article →

Frequently Asked Questions

You can borrow up to 90% of the policy's accrued surrender value for in-force (active) policies. For paid-up policies (where future premium payments have stopped but coverage continues), the borrowing limit is capped at 80% of the surrender value.

For 2026, LIC charges an interest rate of 9.50% per annum on policy loans, compounded half-yearly. The interest rate is reviewed periodically by LIC based on market yields, but once locked, it generally remains fixed for the duration of the loan.

LIC offers complete repayment flexibility. You are only required to pay the interest amount half-yearly. The principal amount can be repaid in full or parts whenever you have surplus cash. If the principal is not repaid, it will simply be deducted from the final policy maturity or death benefit payout.

Yes. If the outstanding loan principal + accumulated unpaid interest exceeds the policy's surrender value, the policy will run into "foreclosure." In this case, LIC will terminate the policy to recover the dues, and all insurance benefits will cease.

No, your life cover remains active. However, if the policyholder passes away before repaying the loan, LIC will deduct the outstanding loan principal and interest from the final death claim payout before releasing the remaining amount to the nominee.

No, LIC does not check your CIBIL score or require income proof. Since the policy bond paper itself acts as collateral (security), the loan is guaranteed. The approval process is fast and requires minimal documentation.

Yes, if your portal account is verified, you can apply for an LIC policy loan online through the LIC Customer Portal. Alternatively, you can visit your home branch and submit Form 5186 (Loan Application Form) along with the original policy bond paper.

LIC loans carry a minimum interest period of 6 months. If you repay the loan within 2 or 3 months, you will still be charged interest for a full 6-month period.

The current interest rate for LIC policy loans in 2026 is 9.50% per annum, calculated on a compounding half-yearly basis. You need to pay the interest amount every 6 months to avoid foreclosure.

A PAN card is generally required for any financial transaction above ₹50,000 in India, including LIC loans. If your loan amount is small, LIC might process it with alternate KYC documents, but linking a PAN card is highly recommended.