Quick Answer: What Is The Rate Of Interest On Loan Against LIC Policy?

Is loan good for LIC policy?

Although the maximum amount of loan you can avail is around 85-90 percent of the surrender value of the policy, if you take a loan in the initial year, the loan amount availed will be significantly low as it takes years for a you to accumulate a significant surrender value under their life insurance policy.”.

Does LIC give personal loans?

Life Insurance Corporation (LIC) is the largest insurance company in India and apart from various insurance products it also offers its policyholders the option to avail personal loans against their insurance policies.

How do you pay interest on a loan?

Divide your interest rate by the number of payments you’ll make in the year (interest rates are expressed annually). So, for example, if you’re making monthly payments, divide by 12. 2. Multiply it by the balance of your loan, which for the first payment, will be your whole principal amount.

Is LIC better than FD?

Comparing between FD and Life Insurance Plan Thinking of short and long term investments, FDs are better. Life insurance plan are suitable only as long term investment options. The minimum period of investment in a life insurance plan is about 10 years. The minimum amount that you can deposit in a FD plan is Rs.

What happens if LIC loan interest is not paid?

If the interest is not paid for 30 days after the due date, LIC can foreclose the policy and settle the loan amount against the proceeds.

Can LIC loan interest be paid online?

Pay LIC India premium online for your Life Insurance Corporation policy towards quarterly, half yearly or annually payment, also pay LIC loan interest online as on date to avoid interest on interest, avail the opportunity to pay LIC premium payment in advance through LIC India online secured portal at ebiz.licindia.in …

Can I get loan on money back LIC policy?

Policyholders can also avail of loan facility under the policy. The LIC new money back policy can be surrendered only after it accrues cash value after payment of 3 years of premiums. … What’s more, policyholders can also take loan against the policy provided it has acquired a surrender value.

How do you calculate surrender value?

If you discontinue the policy, the amount you will get is called the special surrender value. This is arrived at by multiplying the total paid-up value (paid-up value + bonus) with a multiplier called the surrender value factor. The surrender value factor is a percentage of paid-up value plus bonus.

How is LIC maturity amount calculated?

You can compute the surrender value of your LIC policy by making use of the simple formula: Basic Sum Assured (Total number of payable premiums/Number of paid premiums) + Total bonus you receive x Surrender Value Factor.

How is LIC surrender value calculated?

Guaranteed Surrender Value: The policy can be surrendered after it has been in force for at least 3 full years. The Guaranteed Surrender value will be equal to 30% of the total amount of premiums paid excluding the premiums for the first year and all the extra premiums and premiums for accident benefit / term rider.

How LIC maturity is calculated?

Sum Assured (A): = Rs. 5,00,000.Total Bonus Amount on Maturity (B): * = Rs. 1000.Maturity Amount (A+B): = Rs. 35,000.Period of Maturity = Dec, 2021.

How can I know my LIC policy loan status?

To assess loan eligibility, LIC assesses the Surrender Value of the plan. Do note, even though I have mentioned Surrender Value at many places, you DO NOT have to surrender the plan to avail the loan. In fact, LIC will not even offer the loan if you surrender the policy.